Greece’s Public Power Corporation has secured EUR 255 million to upgrade the electricity distribution network operated by the Hellenic Electricity Distribution Network Operator (HEDNO), its subsidiary.
The upgrade is part of a EUR 510 million national investment programme implemented by HEDNO in the 2017-2020 period.
The first part of the European Investment Bank (EIB) loan to PPC, totaling EUR 155 million, was signed at the PPC headquarters in Athens by Manolis Panagiotakis, Chairman and CEO of PPC, and Ioannis Kaltsas, responsible for public sector lending by the EIB in Greece and Cyprus, the EIB said in a press release.
The 20-year loan is guaranteed by the Hellenic Republic, while the remaining EUR 100 million is expected to be signed as the project progresses.
The project envisages the installation of 7,327 km of new medium and low voltage electricity distribution lines that will improve distribution efficiency and increase network resilience and stability.
HEDNO now operates 111.865 km of medium voltage network and 126.377 km of low voltage network.
According to PPC, the investment is crucial to better connect existing and planned wind farms and solar power plants to towns and cities.
Investment to provide attractive returns
Within the framework shaped by technological developments and the EU climate policy, distribution networks become the most significant factor in the power sector, PPC’s Chairman and CEO Manolis Panagiotakis said, adding that distribution assets will continue to provide steady, attractive returns for PPC.
Majority state-owned PPC is the biggest power producer and electricity supply company in Greece. It has two subsidiaries, including HEDNO and PPC Renewables.
In July last year, PPC adopted its 2018-2022 strategic and business plan, which envisages expansion to foreign markets and increase in renewable energy generation.
In 2018, PPC also acquired Energy Delivery Solutions (EDS), an electricity trading and supply company in Macedonia.