Greece: Mytilineos Group, loan for new gas-fired power plant

, SEE Energy News

For the construction of a new gas-fired power plant, Mytilineos Group has secured support from the European Investment Bank (EIB).

The new 826 MW Agios Nikolaos power plant in Viotia, central Greece, will allow greater use of renewable energy resources in the country and enable the phasing out of lignite power production in Greece by 2023, as well as supply long-term electricity demands.

The EIB will provide a 125 million euros, eight-year loan to finance the construction and connection of the new plant worth 322 million euros.

CEO of Mytilineos Group Evangelos Mytilineos said that the EIB’s first-ever loan to Mytilineos is a recognition of the importance and vision of the Agios Nikolaos power plant towards a cleaner energy future for Greece. The new long-term EIB loan demonstrates how the EU Bank supports transformational investment in this country.

EIB vice-president responsible for lending operations in Greece Andrew McDowell said that the bank is supporting energy transition in Greece. As part of the EIB Energy Lending Policy agreed in 2019, it committed to supporting a pipeline of gas projects already under appraisal, before moving to renewables-only lending from 2021. That’s why EIB is pleased to provide this loan to Mytilineos to support Greece’s energy security.

The EIB loan is guaranteed by the European Union under the Investment Plan for Europe. Once operational, the new plant will contribute to ensuring sufficient generation capacity to support the shut down of all, except one, lignite power plants in Greece by 2023. The new plant will be the most efficient gas power plant in Greece, using state-of-the-art CCGT technology. It will also help to diversify electricity generation in Greece.