Greece: EIB steps up its support for climate action

The European Investment Bank is providing EUR 310 million to the Greek Public Power Corporation for promoting energy security and efficiency in Greece.  The investment will add state-of-the-art, environment-friendly energy production and reinforced, extended and efficient electricity transmission and distribution networks throughout the country.

The finance documentation was signed today at the EIB’s office in Athens by EIB Vice-President Plutarchos Sakellaris and PPC’s Chairman and CEO, Arthouros Zervos.

EIB Vice-President Plutarchos Sakellaris, whose responsibilities include the EIB’s lending activities in Greece as well as energy issues, stated:  “Today’s signatures in support of climate action and energy are a decisive step forward for not only development but also sustainable growth.  Our funding for energy security and efficiency in Greece is fully in line with the European “Energy Security and Solidarity Action Plan”,as well as the ECOFIN Council’s priorities.  Through our 48 years of sustained good cooperation with PPC we have been able to provide significant support for power generation and electricity network investments in Greece.”

PPC’s Chairman and CEO, Arthouros Zervos, commented: “Within the new environment that is emerging, PPC is currently being dynamically transformed into a new corporate with a multiple role: to support strategic choices relating to security of supply and system reliability; and to maintain its competitive edge within a liberalised market, having a large programme of environmental investments. For 48 years, the European Investment Bank has been – and continues to be – a long-standing and strategic financial partner. This relationship is today expanding to support PPC’s new strategic focus, aiming to develop new thermal plants that will replace old and inefficient capacity, while pursuing a programme of investments in network development and upgrading.”

EUR 150 million of the EIB funds is destined for the new Megalopolis natural gas-fired, combined cycle power plant in the central Peloponnese, and EUR 160 million will go to the extension and reinforcement of the Greek transmission and distribution networks, covering the whole range of activity from high voltage of 400kV, down to low voltage.

In recent years in Greece, EIB financing in the energy sector has been directed towards securing sustainable energy supplies, reducing the burden on the environment and promoting the development of new sustainable energy sources.  Significant projects in this sector include support for:  (i) the Public Power Corporation’s new Aliveri natural gas-fired, combined cycle power plant on the island of Evia, and network modernisation involving several schemes to reinforce and extend electricity transmission and distribution networks throughout the country; (ii) the Greek Natural Gas Company’s priority Trans-European Network schemes, notably investments in the liquefied natural gas (LNG) terminal at Revithoussa, which has increased capacity and enhanced overall security of supply; (iii) the construction of the high pressure gas pipeline connecting Komotini with Alexandroupolis and the Turkish natural gas network on the Greek-Turkish border; and (iv) renewable energy generation through the construction of wind farms to generate renewable energy, thus promoting EU and national policy on renewable energy and climate change.