ROMANIA: Strategic cooperation agreement between PPC Group and MYTILINEOS for the development of a solar portfolio of up to 2,000 MW in four countries, including Romania
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PPC Group and MYTILINEOS Energy & Metals announce that they have signed a cooperation framework agreement (CFA) to develop and build a portfolio of solar projects of up to 2000 MW in Italy, Bulgaria, Croatia and Romania. The value of the transaction is estimated at up to 2 billion euros and is expected to be implemented in the next three years, according to a press release.
Specifically, the agreement covers approximately 90 solar projects owned by MYTILINEOS in Italy (503 MW), Romania (516 MW), Bulgaria (500 MW) and Croatia (445 MW), which are in various stages of development. According to the agreement, MYTILINEOS will handle the development and construction of these projects, which will then be acquired by PPC Group after the completion of their connection to the power grid of the aforementioned countries.
MYTILINEOS’ experience in the implementation of complex RES projects at the international level was a catalyst for the PPC in the cooperation of the parties and serves as a guarantee for the successful implementation of the agreement.
The framework agreement between the two parties is a landmark for the leadership role that Greek companies can play in the entire region and for Europe’s energy security. The agreement is also an important milestone for the energy transition, with the green energy projects developed under the contract to provide power for 320,000 households and displace 3.4 million tonnes of CO2 emissions.
PPC Group: Growth in South East Europe
For PPC Group, the agreement is an important step towards the implementation of the strategy recently presented to the investment community for economic growth in South-East Europe, with green energy as a key pillar. Through this agreement, PPC Group 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 strategy includes expanding into South-Eastern Europe and capitalizing on opportunities to create value among countries through the creation of the energy corridor. With its presence in different geographical areas, with an extensive and complementary RES portfolio, PPC Group intends to take advantage of the different weather conditions in each region. PPC Group aims to have a total of 8.9 GW of RES capacity installed by 2026.
MYTILINEOS Energy & Metals: The continued growth of M Renewables
For MYTILINEOS, this agreement is part of M Renewables’ broader growth strategy to deploy its international portfolio, including the recent entry into the Canadian market with 1500 MW projects, alongside the execution of the Asset Rotation Program, through which MYTILINEOS finances, among others , continued growth in the renewable energy sector. The multi-level agreement (geographic scope, project timeline) highlights the depth of M Renewables’ portfolio.
MYTILINEOS has already established a significant presence and long experience in markets on a global scale, both in terms of development, engineering, procurement and construction and operation (O&M) projects, deploying thousands of MW in a range of countries, while the total portfolio, following the PPC strategic cooperation agreement and the Canadian investment, amounts to 10,500 MW.
Specifically, with regard to the Italian market, which is of strategic importance for MYTILINEOS, with a long-term presence and a broad portfolio of projects exceeding 2.5 GW, this agreement will provide an additional boost and speed up the implementation of MYTILINEOS’ investment plan in Italy, aiming for an increased presence (integrated utility model) in the country’s energy sector.
Konstantinos Mavros, Deputy General Manager and Head of RES of PPC Group, said: “The agreement we have signed creates value for both parties and strengthens our group’s presence in South-Eastern Europe. The gradual addition of new projects to PPC’s RES portfolio, in new countries, in line with our strategy, enabling us to capitalize on our master plan to create energy corridors in the wider region. MYTILINEOS’ experience in complex RES projects and previous successful partnerships serve as a guarantee for the smooth and timely implementation of the agreement”.
Ioannis Kalafatas, Energy Chief Executive Director of MYTILINEOS, said: “This is a significant agreement between two leading Greek companies with an international footprint as they expand their presence in South East Europe and Italy. We are very pleased with this development, as this is not the first time we collaborate with PPC on the development of green energy projects at an international level. The deal once again demonstrates the capabilities of Greek entrepreneurship on a global scale. We are deeply convinced that the two companies will continue to drive and catalyze this dynamic towards a sustainable green future”.
For his part, Nikos Papapetrou, Executive Director of M Renewables, welcomed the agreement with PPC, underlining its great importance for the RES development strategy of both companies and added: “I would like to thank the working groups of PPC and MYTILINEOS – M Renewables, as well as Strategy and M&A – for their contribution to the realization of this complex agreement. For M Renewables in particular I give special credit to its outstanding people for completing an important milestone in our journey, anticipating similar successes in the future”.
