RWE, a German energy company, has formed a joint venture (JV) with PPC, a Greek utility, to develop utility-scale solar projects with a combined capacity of up to 2 GW in Greece. Under the arrangement, RWE will hold 51 per cent of the joint business, while PPC renewables will hold the remaining 49 per cent. PPC Renewables will provide nine solar projects with combined generation capacity of 940 MW to the joint venture. These are located within the boundaries of a former Amyntaio open pit lignite mine in Greece’s Western Macedonia region.
RWE Renewables, on the other hand, has obtained a similar-sized Greek project pipeline for inclusion in the joint venture. These solar energy projects are at various stages of development and are likely to begin operations between 2023-25. The RWE-PPC joint venture is likely to participate in future rounds of public auctions, which provide successful bidders premium payments over the course of 20 years.
In September 2021, Germany’s power network agency announced 958 MW of offshore wind capacity at zero subsidy for commissioning in the North Sea and the Baltic Sea in Bundesnetzagentur, Germany. RWE Renewables secured not one but two projects in this auction. RWE Renewables Offshore Development Two was awarded a tender for 225 MW in the North Sea and RWE Renewables Offshore Development One for 300 MW capacity in the Baltic Sea, all at zero subsidy.
REGlobal’s Views: Greece has an enabling market and a good potential for solar power deployment. Thus, it is a logical investment destination for a large company like RWE. The company’s collaboration with a local utility will help in navigating the unchartered waters of this new market for RWE.