As part of its expansion strategy into southeastern Europe, Italian utility Enel has agreed to increase its stake in Greek power firm Enelco.

Following an agreement signed in Athens, Enel will increase its participation in Enelco from 50% to 75%. The remaining 25% of Enelco is owned by Prometheus Gas, a joint company of Copelouzos Group and Russia’s Gazprom.

Enelco owns two generation licenses for the development of gas-fired combined cycle power stations in Viotia and Evros. The Greek company will participate in all tenders for the development of independent power generation stations in Greece, starting from the bid for the development of 400MW of new capacity recently issued by the Greek authorities.

Enel, in cooperation with Prometheus Gas, aims to be an important player in the liberalized energy market of Greece and the company said that it may also be able to export energy to Italy via existing sub-sea power lines.