PPC’s €10.1 Billion Investment Plan Sets the Stage for Southeast Europe’s Energy Transition

PPC enters an aggressive growth phase: €10.1 billion in investments, shift to RES and flexible generation, grid expansion, targeting €2.9B EBITDA by 2028.

PPC Stassis: Where the €10.1B Will Go and What It Will Deliver

PPC is entering one of the most ambitious phases in its modern history. With an investment plan of €10.1 billion for 2025–2028, the group aims to leverage its strategic geographic position, strengthen its presence in Southeast European energy networks, and consolidate its role as a key driver of the green and digital transition.

CEO Giorgos Stassis emphasizes a narrative based on proven achievement of targets, while also focusing on shareholder returns through dividends and a share buyback program.

The Investment Plan: €10.1B for RES, Flexible Generation, Grids, and New Markets

The plan reshapes PPC’s production and technological footprint:

1. €6B for RES and Flexible Generation (58% of total)

By 2028, the goal is 12.7 GW of capacity and 1.5 GW of storage. Key projects:

• Conversion of Ptolemaida V to CCGT
• New 840 MW unit in Komotini
• Pumped-storage and hydroelectric facilities These projects create a generation mix that absorbs European wholesale price volatility.

2. Grid Investments in Greece and Romania

Regulated Asset Base (RAB) targets €6.5B by 2028, ensuring ~7% stable returns. Network upgrades are crucial due to:

• Rapid RES deployment
• Electrification
• Growing data centers
• Need for “smart grids”

3. Vertical Integration and Telecommunications

FTTH deployment via the electricity infrastructure will cover 3.8M households by 2028, with 590,000 connections. Post-2030 EBITDA from telecoms is expected to exceed €100M.

The Kotsovolos integration allows PPC to offer full energy solutions: rooftop PV, heat pumps, e-mobility, and technical services.

Financing: Where the €10.1B Will Come From

PPC enters the investment cycle with:

• €4.3B liquidity (33% cash, 67% committed credit lines)
• Access to markets via green bonds
• Strong ESG rating “A” from MSCI

Funding Sources:

• €7B from operational cash flows
• €6B from new debt and financing instruments Net debt expected to peak at 3.5x EBITDA, before reducing to 2–3x, maintaining investment-grade ratings.

Targets 2025–2028: EBITDA, Net Profit, Dividends

• EBITDA €2.9B by 2028
• Net profit €0.9B
• Dividends €1.2/share Long-term EBITDA projected at €3.2B by 2030.

The market already anticipates 2025 EBITDA of ~€2B as realistic.

PPC’s New Energy Footprint: 16.6 GW by 2028

• Capacity 12.5 GW → 16.6 GW
• RES share 51% → 58%
• Full lignite phase-out by 2026
• Flexible generation 1.4 GW by 2028
• Storage 1.5 GW This mix provides hedging against volatility, stable regulated revenues, and low operational risk.

Risk Management: PPC’s Competitive Edge

• Vertically integrated model = natural hedge against volatility
• Production boosts profitability during high wholesale prices
• Retail absorbs RES output during low prices
• Regulated distribution >30% of EBITDA
• Flexible units exploit arbitrage and balancing markets
• Large customer base = stable internal RES consumption

Prudent liquidity management and strong credit ratings ensure stable cash flows in volatile energy markets.

PPC Leads Southeast Europe’s Energy Transition

The €10.1B investment plan transforms:

• Generation base
• Grids
• Technologies
• Retail operations
• PPC’s outward-facing strategy

With full lignite phase-out, strong RES and flexible capacity, grid upgrades in Greece and Romania, and telecom expansion, PPC positions itself as a resilient and forward-looking energy player, ready to capitalize on the opportunities of the energy transition.

Source: pagenews.gr