PPC to build gas peaker plants in Romania of 300 MW in total

Public Power Corp. is planning to install two or three gas peaker plants in Romania. They would cover spikes in power consumption and prices in the country as well as export to Greece when necessary, through a planned electricity corridor.

Greece’s government-controlled PPC, known for its domestic acronym DEI as well, presented a three-year investment plan through 2027. After taking over Enel’s assets as the first in a series of acquisition deals in Romania, the fellow Balkan country became a pillar in the utility’s operations. Alongside 1.5 GW in wind and solar power plants there that are under construction and ready to be built, PPC is planning to build two or three gas peaker plants.

They would have 300 MW in combined capacity. Running on gas, they would be able to come online fast during peaks in electricity consumption and prices in Romania.

In addition, PPC is counting on the so-called North-South electricity corridor through Bulgaria. It means the gas peaker plants could produce power for Greece when necessary. A high-capacity Balkan corridor could become effective within a few years with some new lines and upgrades of existing infrastructure.

Of note, Romania became the biggest natural gas producer in the European Union. Moreover, the completion of the Neptun Deep offshore field in the Black Sea is due in 2027.

Almost 60% of planned capacity additions are under construction or shovel-ready

PPC is aspiring to lift its operational green electricity portfolio to a stunning 11.8 GW in 2027 from the current 5.5 GW. Almost 60% of the planned additions are under construction, in the ready-to-build status or in a tender process.

In Romania, the list has ten items of 1.5 GW in total. One is a 9 MW battery. A wind power plant of 140 MW is under construction and the rest are photovoltaics. The company has a combined 435 MW in construction.

PPC is already building 435 MW in solar and wind power capacity in Romania

Five projects are due to be completed next year, including the battery unit. The largest PV plant under construction is the 210 MW Kinisi-Moșteni photovoltaic park. The Nadab 1 and 2 solar power project accounts for 575 MW as the biggest one in the pipeline, due for commissioning in 2027.

PPC Renewables Romania already operates nine wind parks and six PV units, with 707 MW in total peak capacity. In addition, the Greek company owns three regional power distribution system operators (DSOs) and two energy supply companies.

Adjusted profit surges 71.4% year over year in first nine months of 2024

PPC’s three-year investment plan amounts to EUR 10.1 billion, of which Greece has a 62% share and Romania 30%. It excludes takeovers. Strategic acquisitions are apparently finished, but the company may still react to opportunities that arise.

Of note, the company is planning to close its last and currently newest coal-fired power plant, the Ptolemaida 5 in Greece, by the end of 2026.

In the first nine months of 2024, PPC reported EUR 1.35 billion adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). It was 43.9% more than in the same period of last year.

Net income sank 22.5% to EUR 199 million. But on an adjusted basis, the segment surged 71.4% to EUR 305 million, or 67.9% to EUR 241 million if minority interests are excluded.

Overall, PPC has 4.9 GW of renewable energy capacity in operation at the end of September or 1.1 GW more than one year earlier. The project pipeline tops 20 GW.

Renewable electricity generation jumped 44% year over year to 4.8 TWh, which is 31% of the company’s total output.