Spanish utility Endesa has launched Endesa Hellas, a Greek subsidiary that will be 50.01%-owned by Endesa and 49.99%-owned by Greek firm Mytilineos, with which Endesa signed a strategic alliance in March 2007.
Endesa Hellas, which will be headquartered in Athens, will oversee the power construction and development projects in Greece contributed by Mytilieneos, as well as Mytilineos’s energy, thermal and renewable assets, and its current licenses. Endesa Hellas will also be in charge of spearheading new businesses.
Endesa Hellas will have start-up capital of E1.2 billion, and with approximately 2,000MW of installed capacity, will be Greece’s largest independent utility, with potential to expand into other markets in southeast Europe. The company aims to gain 10% of the Greek electricity market by 2010.
According to Endesa, Endesa Hellas will have the largest order book of power construction and development projects in Greece, including a 334MW combined heat and power plant scheduled to come on-stream in June 2007, a 430MW natural gas-fired combined-cycle thermal plant due to be completed by June 2009, and a portfolio of more than 1,000MW of renewable projects.
The new company’s activities will include the construction and operation of thermal plants fired by natural gas and coal, renewable plants, and the trading of electricity and CO2 emission rights. There are also plans for the company to gradually enter the supply business, depending on the market’s deregulation in accordance with EU directives of July 2007.
Endesa said that creation of this company signals a major step forward for the company in its European expansion plans along the Mediterranean Basin. In addition, the move marks Endesa becoming the first entrant in one of Europe’s most attractive electricity markets.