RWE Renewables inks 2 GW solar deal with Greece’s PPC Renewables

Green energy subsidiaries of German giant RWE and Greek state-controlled PPC agreed to develop large-scale solar projects with a total capacity of up to 2 GW. Their joint venture may bring the first photovoltaic units online within two years, they said and added they intend to expand cooperation, including in other segments.

After prolonged negotiations, RWE Renewables agreed with Greece’s PPC Renewables to establish a joint venture in which the German company would hold 51%. RWE is entering the Balkan country’s market with substantial ambitions: its green energy subsidiary said it would develop up to 2 GW in solar power plants with the domestic partner.

PPC Renewables is a subsidiary of Greek government-controlled Public Power Corp. or PPC, which intends to shut down all its remaining coal-fired thermal power plants by 2025 at the latest. It is developing solar power projects of 3.6 GW to replace them, using vast areas left after the closure of open pits, tailings and ash and slag dumps.

First photovoltaic projects scheduled to come online in 2023

PPC, in which the government may soon lower its stake from 51% to 33% or 34%, has other types of renewables in mind as well and also in other places. For instance, it is working on a project for a biomass power plant in Amyntaio, where it recently closed a 600 MW coal-fired system.

The Amyntaio municipality in Western Macedonia, where PPC recently closed a 600 coal plant, is set to be transformed with investments in photovoltaics and a biomass power plant

The location is in Western Macedonia, one of the two lignite hubs in Greece. PPC Renewables will contribute 940 MW in peak capacity in nine solar power projects in a former open pit mine in Amyntaio to the joint venture with RWE Renewables, according to the announcement.

The cluster should have 870 MW in alternating current, which is the maximum that can be delivered to the grid, they revealed. PPC Renewables has received the first permits.

RWE Renewables has secured a Greek photovoltaic project pipeline of similar size for the purpose of including it in the joint venture with PPC Renewables, the statement adds. The advanced projects are expected to start operating in 2023 and others may follow in 2025, according to the two companies.

RWE has 1 GW in projects for solar power venture with PPC

The financial terms of the transaction are confidential. PPC and RWE said they may extend their cooperation to further photovoltaic projects as well as new opportunities.

Energypress learned RWE Greece has obtained so-called producer certificates for a group of future solar power plants of 700 MW in total and another one with 300 MW, both from a domestic firm called Idea.

The German energy company said it has an overall operational renewables portfolio with an installed capacity of more than 9 GW and that it is currently building photovoltaic plants with a total capacity of 1.4 GW (or 1.2 GW in alternating current) worldwide.

“PPC is committed to leading the energy transition in the country. Our extroversion is essential for the group’s transformation. Together with strong partners we are on track to meet our ambitious targets and drawing our own green deal,” said Chief Executive Officer of PPC Renewables Konstantinos Mavros. He signed the deal with RWE Renewables’ Chief Operating Officer Katja Wünschel, responsible for onshore wind and photovoltaics in Europe and Asia-Pacific.

PPC Renewables has signed an array of memorandums with domestic and foreign companies for the joint development of green energy projects.