The Strategic Importance of PPC’s 2025-2027 Development Plan

12:54 20/1/2025 - Πηγή: Dikaiologitika

PPC’s transformation has been five years in the making, guided by the vision of becoming a financially resilient, environmentally sustainable, and technologically advanced energy company.

The 24 months spanning 2025 to 2027 mark a pivotal era for PPC, as the Group accelerates its transformation into a green,

customer-centric, and regionally influential energy leader. With investments exceeding €10 billion, PPC is spearheading renewable energy expansion, network growth, and decarbonization, aiming for an 80% reduction in emissions by 2027. This period will redefine PPC’s operational and financial trajectory, doubling its renewable capacity, enhancing energy production, and cementing its role in shaping a sustainable energy future for Greece and Southeast Europe.

PPC’s transformation has been five years in the making, guided by the vision of becoming a financially resilient, environmentally sustainable, and technologically advanced energy company. Amid significant global challenges across economic, geopolitical, and health domains, the Group has laid a robust foundation for growth, redefining the energy landscape in the region.

In its recently unveiled strategic development plan for 2025-2027, PPC committed to investments exceeding €10 billion. According to the updated Business Plan, 94% of these funds will be allocated to growth-oriented initiatives, with a strong emphasis on renewable energy sources (RES), network expansion, and flexible energy production. This ambitious strategy focuses on long-term development while reinvesting operational profits into projects that support the sustainability of both the nation and its citizens.

During this transformative period, PPC projects an increase in annual energy production from 20 TWh to 24 TWh. This growth will be fueled by new RES projects in Greece and abroad, anticipated to add 9 TWh of energy annually. These additions will compensate for the decommissioning of lignite and other polluting units, currently generating 5 TWh annually. By 2027, PPC aims to expand its renewable capacity to 11.8 GW, supported by the development of 6.3 GW of RES in Greece and Southeast Europe. Currently, 60% of these projects are either under construction, ready for development, or in the tendering phase. Furthermore, PPC is investing in innovative energy solutions such as pumped storage, batteries, gas plants, and hydroelectric projects to address the challenges of renewable energy intermittency and maximize value.

PPC is on track to phase out lignite entirely by 2026 while significantly reducing oil-based production through island interconnections. By 2027, the Group expects to reduce greenhouse gas emissions by 80% compared to 2019 levels. Customer-centric initiatives also play a crucial role in the plan, with services like partnerships with Kotsovolos, home solar panel installations, electrician certifications, and energy management solutions enhancing the consumer experience. Internationally, PPC aims to expand its vertically integrated model into Romania, focusing on RES development to meet the energy demands of PPC Romania’s growing customer base.

The Group also prioritizes network development in Greece and Romania, with its Regulated Asset Base (RAB) expected to grow annually by 7.7%, reaching €6 billion by 2027. PPC has set an ambitious goal of achieving climate neutrality by 2040, with intermediate milestones including a 73.7% reduction in Scope 1 and 2 emissions by 2030 and a 98.6% reduction by 2040, using 2021 as the baseline, as certified by the Science-Based Targets initiative (SBTi).

Financial projections for 2025-2027 reflect robust growth and value creation. PPC anticipates its EBITDA to rise from €1.8 billion in 2024 to €2.7 billion in 2027, driven by RES expansion, vertical integration, decarbonization, and flexible energy production. Despite the scale of investments, PPC plans to maintain a Net Debt/EBITDA ratio below 3.5x, with approximately 70% of its investments financed through increased cash flows. Additionally, the Group expects substantial growth in dividends, which are projected to rise from €0.25 per share in 2023 to €1 per share in 2027, representing one of the highest growth rates in the European energy sector.

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