The first “green” PPA for a public company

The first “green” bilateral electricity supply contract (PPA) with a public sector company was signed today at the Eugenides Foundation, in Athens, between TERNA ENERGY A.V.E.T.E. and EYATH S.A. The contract was signed on behalf of EYATH by the company’s managing director, Anthimos Amanatidis, and on behalf of TERNA ENERGY by Michalis Verriopoulos, the company’s general director of Development.

With the aim of reducing its carbon footprint, as well as its energy costs, EYATH S.A. thus becoming the first company in the public and wider public sector to enter into such a contract based on Law 4412/2016, following the relevant tender announced [“Electricity supply through bilateral electricity purchase contracts with monetary settlement (Financial/Virtual Corporate Power Purchase Agreement – PPA) and transfer of certificates’]. Within the framework of the contract, EYATH will be supplied by TERNA ENERGY, a subsidiary of GEK TERNA Group, with electricity up to 100 GWh per year, for a period of 8 years with an option of 4 additional years. This energy will come from both wind and photovoltaic plants. Specifically, EYATH will be supplied by TERNA ENERGY at an average price below €80/MWh, 75 GWh from a wind farm that is already in operation and 25 GWh from a photovoltaic station that is under construction. In addition to the reduction of energy costs for the company, an additional benefit will also arise from the transfer of the Guarantees of Origin (Green Certificates) for this “green” energy to EYATH.

The main forms of PPAs and their differences (in price, duration, volume and type of energy supply between producer and consumer) were presented by the president of EYATH and professor of Energy Systems at AUTH, Agis Papadopoulos, making a brief reference to the corresponding market in Europe: “Reducing energy costs has become imperative due to the dramatic increase in electricity prices due to the energy crisis and instability in international markets. At the same time, this contract is an important step towards the realization of the company’s sustainable development goals.”

“The undeniable competitive advantages of domestically produced clean energy over all other available imported options are becoming increasingly apparent. In addition to the decisive role of Renewable Energy Sources in the fight against the climate crisis, cheap and reliable green energy is becoming every day a more conscious choice for industry, businesses and households. We are particularly happy that TERNA ENERGY, a pioneer in RES for more than 2 decades, is able to offer integrated solutions for energy costs, in a mutually beneficial way, such as today’s bilateral contract”, said the General Director of Development of TERNA ENERGY, Michalis Verriopoulos.

The legal framework (law 4412/2016) and the particularities of EYATH’s case were developed by the vice-president of the company, Grigoris Penelis: “The nature of the supply (the intangible energy and the virtual nature of the supply) particularly concerned the Audit Court. The approval of the tender by the Plenary is a road map for the wider public sector, a road that was first opened by EYATH”.

The company’s managing director, Anthimos Amanatidis, referred to the significant financial advantage that the contract will bring to EYATH, but also to the limitation of its environmental footprint: “For the optimal coverage – from a financial and technical point of view – of EYATH’s energy needs, the produced energy will come from both wind and photovoltaic plants. The estimated benefit today is calculated with average prices at least 2.4 million euros, while with the addition of the PV park in two years, the benefit will rise to at least 3.4 million euros.” “At the same time, within the framework of the sustainable development policy implemented by EYATH S.A., the need to reduce our carbon footprint is imperative. By replacing conventionally produced electricity with energy produced from RES, we are taking a decisive step in reducing our carbon footprint by over 50% in a very short period of time. This is expected to have a significant positive impact on the company’s valuation, as we are also listed on the ESG Index of the Athens Stock Exchange”, added Mr. Amanatidis.

Financial PPAs are financial contracts, according to which a fixed price is paid for each unit of energy produced on a monthly basis, then the difference between the wholesale electricity purchase price and the PPA price is calculated, when the difference is settled accordingly.

On the panel from the left, Grigoris Penelis, vice-president of EYATH SA, Michalis Verriopoulos, general director of Development of TERNA ENERGY, Anthimos Amanatidis, managing director of EYATH SA, and Agis Papadopoulos, president of EYATH.



Connect to our networks !