The country recorded over 1.1 GW of deals for solar projects in 2022, accounting for 35% of all the total solar capacity transacted in the Balkans during the year. Enerdatics believes that the increase in activity is primarily driven by the growing demand for clean energy in the wake of the Russia-Ukraine conflict. Greece’s power matrix is currently dominated by gas-fired generation, with the country historically relying on Russian imports to satisfy nearly ~40% of its gas requirements. However in June 2022, Greek energy minister Kostas Skrekas stated that €44bn would be dedicated to the structural transformation of Greece’s energy sector, with a focus on increasing renewable energy capacity from 9 GW to 25 GW. Electricity transmission and distribution system operators (TSOs and DSOs) are investing billions of Euros in grid infrastructure and smart technology to accommodate more than 13 GW of new renewable energy capacity by 2030. Foreign investment in several high and low voltage grid operators has also created the potential for greater growth and adoption of modern infrastructure. Meanwhile, current electricity prices in Greece are the highest in Europe, with an average tariff of $300/MWh. The combination of high growth potential in the long-term and windfall profits due to elevated electricity prices in the short-term are spurring investors to pursue initiatives in the country’s solar sector. Conducive government policies, such as the introduction of a new law to simplify the permitting processes for renewables and shorten their period to 14 months, is also driving M&A and investment activity.
Recent deal: Motor Oil Renewable Energy has acquired a 75% stake in Unagi SA, a holding platform that owns a 51% stake in three solar power companies in Greece with a combined capacity of 1.9 GW. The projects are in the advanced stages of development, and construction activities are expected to commence in 2024. The deal is part of Motor Oil’s $4.3bn investment plan to expand its clean energy portfolio, which will now represent ~3 GW of capacity under development.
Other significant transactions: Major deals announced recently in the country’s solar sector include Hellenic Petroleum’s acquisition of a ~320 MW portfolio from FEN SOL and Trina Solar, Econergy’s purchase of a stake in 460 MW of projects from Terna Energy, and Wirtgen Invest’s takeover of a 50 MW solar asset from ABO Wind.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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