From EATHI and TERNA ENERGY the first “green” PPA company

The first “green” bilateral contract for electricity supply (PPA) with a public sector company was signed today at the Evgenidou Foundation, Athens, between A.B.E. T.E. and S.A. The contract was signed by the CEO of the company, Anthimos Amanatidis, and by TERNA ENERGY by Michael Verropoulos, director-general for the development of the company. In order to reduce the carbon footprint, but also its energy costs, EATH SA. It thus becomes the first public and general public sector company to conclude such a contract under Law 4412/2016, following the relevant tender that had announced [“Electric power supply through bilateral contracts for the purchase of electricity by cash settlement (Financial/Virtual Corporate Power Purchase Agreement – PPA) and transfer of certificates”. Under the contract, EATH will be supplied by TERNA ENERGY, a subsidiary of GEK TERNA Group, 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 stations. Specifically, EASTH will be supplied by TERNA ENERGY with an average price of less than 80 €/MWh, 75 GWh from wind park already in operation and 25 GWh from a photovoltaic station under construction. In addition to reducing the energy costs for the company, an additional benefit will also be derived from the transfer of the Green Certificates for this ‘green’ energy to EIATH. 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, Agios Papadopoulos, making a brief reference to the respective market in Europe: “The reduction in energy costs became imperative because of 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 achieving the company’s sustainable development objectives.” “The undeniable competitive advantages of domestically produced clean energy over all other imported options available are becoming increasingly evident. In addition to the crucial role of Renewable Energy in combating the climate crisis, cheap and reliable green energy becomes every day and more conscious choice for industry, business and households. We are particularly pleased that TERNA ENERGY, a pioneer in RES for more than 2 decades is able to offer comprehensive solutions to energy costs, in a mutually beneficial way, such as today’s bilateral contract.” said the director-general of development of TERNA ENERGY, Michael Verropoulos. The legal framework (n. 4412/2016) and the particularities of the case of EATHH developed by the company’s vice president, Gregory Penelis: “The nature of the supply (the intangible energy and the virtual nature of the supply) was particularly concerned by the Court of Auditors. The approval of the competition by the plenary is a road map for the wider public sector, a road that was first opened by EATH.” The significant economic advantage that the contract will confer on EKATH, but also the limitation of its environmental footprint, was mentioned by the company’s CEO, Anthimos Amanatidis: “For the optimal coverage – from an economic and technical point of view – of the energy needs of EYATH, the energy generated will come from both wind and photovoltaic stations. The estimated benefit is currently calculated with average prices of at least EUR 2.4 million, while adding the park p/b in two years, the benefit will amount to at least EUR 3.4 million.” “At the same time, in the context of the sustainable development policy implemented by EYATH S.A., it is imperative to reduce our carbon footprint. By replacing conventionally produced electricity with the energy produced by RES, we take a decisive step in reducing our carbon footprint by over 50% in a very short time. This is expected to have a significant positive impact on the valuation of the company, as we are also listed in the ESG Index of the Athens Stock Exchange”, added Mr.Amanatidis. Final PPA contracts are financial contracts whereby a fixed price is paid for each energy produced on a monthly basis, the difference between the wholesale electricity market price and the PPA price is then calculated, when the difference is settled accordingly.