Greece: DEDDIE tender extended, SEE Energy News
Initially, the deadline for the expression of interest for the acquisition of 49 % stake in DEDDIE was 29 January, but the deadline is now pushed back to 19 February.
State-controlled Greek Public Power Corporation (PPC) announced that it has extended the deadline for the expression of interest in the first round of tender for the sale of a stake in its subsidiary, electricity distribution system operator DEDDIE.
In December, PPC said that more than 10 participants, including renowned European operators and infrastructure funds, took part in a market test for the sale of 49 % stake in DEDDIE. The turnout has been deemed satisfactory and PPC’s Board is expected to officially launch the privatization process soon.
The Regulatory Authority for Energy (RAE) has recently set DEDDIE’s weighted average cost of capital (WACC) level to 7 % for 2020 and to 6.7 % between 2021 and 2024, which should be very attractive for potential investors. According to DEDDIE’s 2020-2028 business plan, the operator’s investment funds will be gradually increased to reach annual levels of 300-350 million euros, from current 150-170 million euros. DEDDIE’s new investments will focus on upgrading and expanding the electricity network to facilitate growing needs of the renewable energy sector and broadened network presence, especially on islands, as well as ambitious electric vehicle targets. The overall upgrade will include network digitization projects for advanced grid management and smart meter installations. DEDDIE’s investments were on the downward trend in recent years. Contrary to other EU operators, the company’s regulatory asset base value has decreased during the period of economic crisis. as new investments each year have been outweighed by the depreciation levels of previous projects. The privatization is expected to provide funding for many modernization projects.
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