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Spanish ENDESA opens new Greek subsidiary June 28, 2007

Posted by grhomeboy in Energy.
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The CEO of ENDESA, Rafael Miranda, along with Mytilineos Group’s Chairman, Evangelos Mytilineos, inaugurated on June 26 Endesa Hellas, the new subsidiary in Greece.

Endesa Hellas will oversee the power construction and development projects in Greece contributed by local company Mytilieneos, as per the strategic alliance signed in March. Headquartered in Athens, the company will also be in charge of spearheading new businesses.

Jesús Olmos, General Manager of Endesa Europe; Dora Bakoyianni, Foreign Affairs Minister, and the Spanish Ambassador to Greece, Juan Ramon Martinez Salazar, attended the ceremony. Approximately 1,800 people also attended, mostly representatives of the Greek government, members of Parliament and heads of Greek main utilities and other businessmen.

Endesa Hellas will have start-up capital of Euro 1,200 million and 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. Endesa owns 50.01% while Mytilineos owns the remaining 49.99% of Endesa Hellas. Mytilineos will contribute all its energy, thermal and renewable assets, as well as its current licences.  Endesa Hellas will have the largest orderbook of power construction and development projects in Greece, including:

  • A 334 MW CHP, scheduled to come on stream in June 2007
  • A 430 MW natural-gas fired combined-cycle thermal plant, currently under construction. It should be completed by June 2009.
  • A portfolio of more than 1,000 MW of renewable projects.
  • A 600 MW coal-fired thermal plant.
  • Other assets, including a 310 MW trading license, a new license for another combined-cycle gas plant and one for an international coal plant
  • The new company’s activities will include construction and operation of thermal plants (natural gas and coal), renewable plants (wind farms, hydro and photovoltaic) and 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.

Creation of this company signals a major step forward for Endesa in its European expansion plan along the Mediterranean Basin, with the aim of consolidating its current position and leveraging existing value-creation tools to aid in development of new businesses. In addition, Endesa becomes the first entrant in one of Europe’s most attractive electricity markets, both strategically, given its growth prospects, and in terms of its pricing structure and interconnections with Italy, Bulgaria, Macedonia and Albania.

Related Links > http://www.endesa.es

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