PPC Group and Mytilineos Energy & Metals have signed a Cooperation Framework Agreement for the development and construction of a 2GW portfolio of solar projects across Italy, Bulgaria, Croatia and Romania.
The value of the deal is estimated at up to €2bn and is expected to be implemented over the next three years.
The agreement refers to approximately 90 solar projects owned by Mytilineos in Italy (503MW), Romania (516MW), Bulgaria (500MW) and Croatia (445MW) which are at various stages of development.
Under the agreement Mytilineos will undertake the development and construction of these projects, which will then be acquired by PPC Group upon completion of their connection to the grids of their respective countries.
Mytilineos’ track record in implementing complex RES projects internationally has been a catalyst for PPC’s confidence in the cooperation of the parties and serves as a guarantee for the successful implementation of the agreement, it said.
For PPC Group, the agreement is an important step towards the implementation of the strategy recently presented to the investment community for growth in Southeastern Europe, with green energy as a key pillar. With this agreement, the company will acquire RES projects outside Romania, where it already has a significant presence, and in three new countries, namely Italy, Bulgaria and Croatia.
PPC Group’s said its strategy includes expansion in south-east Europe and leveraging the opportunities to create value among the countries through the energy corridor being created. With its presence in different areas, and an expanded and complementary RES portfolio, PPC Group intends to take advantage of the different meteorological conditions in each region, it added.
PPC Group aims to have a total of 8.9GW of installed RES capacity by 2026.
For Mytilineos, this deal is part of M Renewables’ broader growth strategy for the implementation of its international portfolio, it said. This includes the recent entry into the Canadian market with projects with 1.5GW alongside the execution of the Asset Rotation Programme, through which Mytilineos finances, among others, the continuous growth in the renewable energy sector.
The multi-level nature of the agreement (geographical scope, timing of projects) highlights the depth of M Renewables’ portfolio, it added.
Mytilineos has already established a significant presence and long-standing track record in the marketson a global scale, both in terms of development, engineering, procurement and construction and operation projects, having implemented thousands of megawatts in a number of countries, the company said. Its total portfolio,following the PPC strategic cooperation agreement and the Canada investment, now amounts to 10.5GW.
More specifically, with regards to the Italian market, which is of strategic importance for Mytilineos, having a long-term presence and a wide portfolio of projects exceeding 2.5GW, this agreement will provide further momentum and accelerate the implementation of its investment plan in Italy, aiming at an enhanced presence (integrated utility model) in the country’s energy sector.
“The agreement we have signed creates value for both parties and consolidates our group’s presence in Southeastern Europe,” said PPC Group’s deputy chief executive and head of RES Konstantinos Mavros.
“The gradual addition of new projects to PPC’s RES portfolio, in new countries, in accordance with our strategy, allowing us to leverage on our overall planning for the creation of energy corridors in the wider region.
“Mytilineos’ track record in complex RES projects and previous successful partnerships serve as a guarantee for the smooth and timely implementation of the agreement”.
Energy chief executive director at Mytilineos Ioannis Kalafatas said: “This is a significant agreement between two leading Greek companies, with international footprint, as they further expand their presence in Southeast Europe and Italy.
“We are very pleased with this development, as it is not the first time, we have collaborated with PPC on the development of green energy projects internationally.
“The agreement once again demonstrates the capabilities of Greek entrepreneurship on a global scale. We are deeply convinced that the two companies will continue to lead and catalyze this dynamic towards a sustainable green future “.
Executive director of M Renewables Nikos Papapetrou also welcomed the agreement with PPC, stressing the great importance for the RES development strategy of both companies and added: “I would like to thank the working groups of both PPC and Mytilineos – M Renewables as well as Strategy and M&A – for their contribution to achieving this complex agreement.
“Especially for M Renewables, I give special credit to its outstanding people for completing a milestone in our journey, anticipating similar successes in the future”.