Photo: IPTO
Greece’s Ministry of Environment and Energy is reportedly nearing a final decision regarding a capital increase for Independent Power Transmission Operator. The state-controlled transmission system operator (TSO) needs EUR 1.1 billion to continue its investment projects. The government is said to be in favor of existing shareholders providing the funds. There were rumors earlier that the government was going to sell a stake, where it would become a minority co-owner but remain in the driver’s seat, like it did before with Public Power Corp.
Independent Power Transmission Operator (IPTO) needs a capital injection of some EUR 1.1 billion to keep the ten-year core growth plan worth EUR 7.8 billion on track, according to Greek media reports. The government holds a 51% stake through two entities, and the only other major shareholder is State Grid Corp. of China. It acquired 24% in 2017.
The company, also known for its Greek acronym Admie, is said to require an urgent capital increase as it can’t get loans anymore. The last one amounted to EUR 300 million, from the National Bank of Greece.
Greece aiming to keep 51% stake amid geopolitical uncertainty
Energypress learned, citing unnamed sources in the Ministry of Environment and Energy, that the government is about to make a decision. The latest unofficial information was that, due to unprecedented geopolitical uncertainty, Greece wants to keep its majority stake and raise the capital in tandem with other existing shareholders.
China’s State Grid holds 24% of IPTO since 2017
Earlier reports have indicated that the government was considering a sale of a stake and a stock market listing. It would keep some 34%, allowing it to continue running the Independent Power Transmission Operator, like it did in 2021 with Public Power Corp. – PPC Group.
Major tender already underway for Dodecanese Interconnection
Most of the capital expenditure through 2034 is scheduled for before the end of the decade, EUR 6.5 billion. The biggest projects on the current ten-year list, updated in September, are the Dodecanese Interconnection, North Aegean Interconnection and the one for the second line to Italy. They amount to EUR 5.2 billion in total. All three are for submarine cables.
Last month the TSO published a tender for a bidirectional undersea link between the mainland grid, in Corinth, and the Dodecanese island of Kos. The cable system would be 1,290 kilometers long and have 1 GW in total transmission capacity. The budget is EUR 1.35 billion.
Notably, the company froze another major tender last year after receiving the bids in April.
Interconnections with Egypt and Saudi Arabia are planned in the longer term. The Crete-Cyprus link, part of the Great Sea Interconnector endeavor, is also separate.
BlackRock, Meridiam, Fortress, Fidelity, KKR and Abu Dhabi National Energy Co. (TAQA) were rumored to have expressed interest in entering ownership, among others.
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