Mytilineos and Karatzis to develop three large PV plants in Greece

Alina Oprea
The companies Mytilineos and Karatzis have signed a power purchase agreement (PPA), allowing for the construction of three large photovoltaic plants in Greece. Under the PPA, Karatzis will sell the electricity from three projects with a total capacity of 270.8 MW to its customers, signaling a positive development for the Greek PPA market as a whole, which has been experiencing certain obstacles and a slower pace than initially expected. The investments amount to €190.8 million, of which €159.6 million will be provided through the European Union's Recovery and Resilience Fund (RRF) and bank loans, according to Balkan Green Energy News.

Karatzis got loans approved earlier from Eurobank and Bank of Piraeus. It also secured equipment supply contracts. Construction has begun near Kileler in Thessaly and the facilities are expected to become operational in the third quarter of 2024.

This new deal means that it still makes sense for certain large producers and consumers to enter the PPA market, even though prices have risen over the last couple of years.

However, it remains to be seen whether more players will embrace PPAs since multiple obstacles remain in Greece. There is also the issue of scale since PPAs are complex and expensive tools, so for now they only make sense for larger companies.

Mytilineos produces metals and also has a vertical presence in the energy market, being one of the top private producers and suppliers. Karatzis produces a variety of netting products and has five plants. In recent years it expanded into green energy through the construction of photovoltaics.

The company has set a high goal for its renewables arm. It aims to install 330 MW of photovoltaics with batteries in Thessaly in Central Greece within the next few years.

The investments will contribute to Karatzis's goal to reach 600 MW of renewable capacity. The group's financial results for 2022 showed that energy provided 18.2% of its total sales with €6.6 million, a percentage the company expects will grow over time.

A renewable energy project with a PPA gets priority in grid connection.

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Green Forum  |  28 February, 2024 at 7:00 AM
Green Forum  |  27 February, 2024 at 8:00 AM