PPC’s pole position in the market
The sale of 49% of the Hellenic Electricity Distribution System Operator (DEDDIE) and the capital increase that Public Power Corporation suddenly announced last Thursday gives PPC the financial strength to consolidate its position as a solid pillar in the era. post-lignite from the local economy. energy market.
The utility’s decision is expected to be the catalyst for activity at the business level towards mergers and acquisitions in the industry, with weaker players joining stronger ones. This cycle will likely end with the supremacy of three or four utilities, with PPC now certain to be one, market insiders point out.
The decision to reduce the state’s stake to 34% opens a new page in PPC’s history as a listed company in an increasingly competitive market. On the strength of the significant liquidity reserves resulting from the capital increase and the 49% concession of DEDDIE, as well as its emancipation from the State which was holding it back with a problematic growth model, the country’s largest industry has gone from being defense on the offensive because it constitutes the future agenda on the energy market, accelerating the energy transition. She will now have the money to finance her transformation.
The plan behind the capital increase is for PPC to double its market share in renewable energy sources to reach up to 40% (including hydropower) until 2026, as well as to enter the Bulgarian, Romanian and Serbian market. as a producer.
The local market recognizes the benefit of this latest PPC movement and its momentum for the industry, especially in the current period with the pressure of increased need for working capital amid rising electricity tariffs. This crisis is likely to change the energy map internationally, Greece being no exception.
“It’s a game of survival, and only the strongest will survive,” says a representative of one of the major Greek energy groups, also highlighting developments in Britain where larger players are taking over customer lists from small suppliers in difficulty.