PPC Group aims to commission green energy production plants of 1.3 GW in Romania

PPC, which acquired Enel's operations in Romania, aims to commission new green energy production plants in the country with capacities of around 1.3 GW by 2026. The group recently presented its Strategic Plan for 2024-2026 in London.

PPC has planned investments of EUR 9 billion for the period 2024-2026 in the countries it operates, mainly in renewable energy sources, modernizing networks, and new activities, marking a 130% increase compared to the 2021-2023 period.

In Romania, PPC aims to commission new green energy production plants with capacities of around 1.3 GW by 2026, up from about 600 MW currently.

The group estimates that Romania's electricity demand will increase by 10% by 2030, needing additional investments in clean energy sources to boost economic competitiveness. It expects the installed power in Romania's electric power plants to increase by 48% in this interval, with new green energy capacities totaling 6.4 GW contributing to meeting the demand.

"As such, Romania is a key country in PPC's development plans, making it a major destination for planned investment projects. At the group level, PPC has a portfolio of 18 GW projects for renewable energy capacities, a third of which targets Romania. Therefore, by 2026, PPC expects to commission new green energy production plants in Romania with capacities of around 1.3 GW, adding to the existing ones of about 600 MW. As the group's PPC renewable production will come from areas with diverse climates and geographies, this will create security and flexibility between countries, contributing to increasing the resilience model in the region," PPC states in a press release.

The largest electricity producer and supplier in Greece, the group announced in October 2023 that it is finalizing the acquisition of Enel's operations in Romania. The PPC Group will reach nearly 9 million customers, and its total installed capacity for renewable energy production (hydroelectric, wind, photovoltaic, etc.) will rise to approximately 4.4 GW.

The company estimates that its market share in supply will remain stable at 18% until 2026, despite increased competition, while the focus will be on increasing customer satisfaction and improving company operations.

At the group level, this development strategy is expected to generate a significant increase in profitability during 2024-2026, with EBITDA estimated to rise from EUR 1.5 billion (considering a pro forma basis for operations in Romania) in 2023 to approximately EUR 2.3 billion in 2026, with operations in Romania contributing about 20% during this period.

"Romania will play an essential role in the region and the group's development plans," say PPC representatives.

"The 2024-2026 period will be one of EUR 9 billion investments, creating value for the group and added value for customers, shareholders, employees, and the environment in all countries where we operate. With our new business plan, the PPC Group is strategically positioned in the field of green transition," said PPC Group's president and CEO, Georgios Stassis.