* To invest 250 mln euros in renewable energy over 3 years
* Aims for a total capacity of about 429 MW by 2010
* Search for strategic partner not a current goal
By George Hatzidakis
ATHENS, July 11 (Reuters) – Power company RF Energy (ESKr.AT: Quote, Profile, Research) plans to invest 250 million euros ($394.3 million) by 2010, expanding its business to meet growing demand for alternative energy in Greece, a senior executive said on Friday.
Greece lib
* To invest 250 mln euros in renewable energy over 3 years
* Aims for a total capacity of about 429 MW by 2010
* Search for strategic partner not a current goal
By George Hatzidakis
ATHENS, July 11 (Reuters) – Power company RF Energy (ESKr.AT: Quote, Profile, Research) plans to invest 250 million euros ($394.3 million) by 2010, expanding its business to meet growing demand for alternative energy in Greece, a senior executive said on Friday.
Greece liberalised its energy market last year, making it easier for smaller companies to challenge entrenched power utility Public Power Corp. (PPC) (DEHr.AT: Quote, Profile, Research), with investment in the renewable energy sector now more attractive.
RF Energy, the power subsidiary of wholesaler FG Europe (ESKr.AT: Quote, Profile, Research), currently has 17.6 MW capacity with a wind park and small hydroelectric plant in the south of the country. It wants to increase this more than 20-fold over 3 years.
"For the medium and long term RF is aiming for a total capacity of 428.5 MW by 2010," general manager Ioannis Pantousis told Reuters in an interview. "In the short term RF has two projects under construction for a total of 11 MW." "(We have) a goal to invest 250 million euros … allocated to own project development as well as mergers and acquisitions. RF intends to expand abroad … mainly in the Balkan region," he said.
eralised its energy market last year, making it easier for smaller companies to challenge entrenched power utility Public Power Corp. (PPC) (DEHr.AT: Quote, Profile, Research), with investment in the renewable energy sector now more attractive.
RF Energy, the power subsidiary of wholesaler FG Europe (ESKr.AT: Quote, Profile, Research), currently has 17.6 MW capacity with a wind park and small hydroelectric plant in the south of the country. It wants to increase this more than 20-fold over 3 years.
"For the medium and long term RF is aiming for a total capacity of 428.5 MW by 2010," general manager Ioannis Pantousis told Reuters in an interview. "In the short term RF has two projects under construction for a total of 11 MW." "(We have) a goal to invest 250 million euros … allocated to own project development as well as mergers and acquisitions. RF intends to expand abroad … mainly in the Balkan region," he said.
Greece currently generates about 760 MW of power from renewable energy sources, less than 5 percent of its energy capacity. Continued use of coal and imports of costly oil have weighed heavily on the environment and economy.
The European Union has called for a 30 percent reduction of greenhouse gas emissions by 2020, while Sweden, with much less sun and wind than Greece, is aiming to get half its energy from these sources by then.
"The company is expected to benefit from government grants and other incentives awarded to fund investments in renewable energy," Pantousis said.
RF Energy expects earnings before interest, tax, depreciation and amortization (EBITDA) of about 2 million euros this year.
It also plans to buy wind turbine generators and has already signed deals with land owners for the use of land to develop its wind power projects, he said.
While RF Energy is confident it can reach its goals without having to seek a strategic partner, local or foreign, it does not rule out the idea.
"A partnership does not presently constitute a strategic goal," Pantousis said. "Nevertheless, RF is open to any suggestions … that could be helpful towards achieving its ambitious investment plan."
FG Europe, which owns a 40 percent stake in the company, intends to seek a separate listing for RF Energy in the future. Greece's Restis shipping family own a 50 percent stake in RF.
