Italy’s second-largest power producer, Edison, has signed an agreement with Greece’s Hellenic Petroleum to set up a 50:50 venture to become Greece’s No. 2 power producer with new generation to include hydropower.
The companies said they would confer a total of 1,400 MW of assets — existing and planned — to the joint venture. Edison also will pay Hellenic 55 million euros (US$75.62 million) to account for the different value of the assets pooled.
Edison, owned by French power company Electricite de France and Italy’s biggest city power utility, AEM Milano, said the joint venture aimed to have about 12 percent of the Greek power market.
Hellenic will put in its T-Power subsidiary, which owns a 390-MW combined-cycle power plant, while Edison will add its 65 percent stake in a 420-MW combined-cycle plant project and a project it is studying for a 600-MW coal-fired plant.
Edison and Hellenic’s agreement also calls for new projects to be developed, including hydroelectric and wind power facilities, that could raise installed capacity to between 1,500 and 2,000 MW.
Edison Chief Executive Umberto Quadrino said Edison also is interested in developing coal and hydro production in the Balkans.