The countdown is on for the first batteries of the joint venture set up by PPC and Metlen last spring. The two companies agreed to join forces and pool their expertise to pursue opportunities across Southeastern Europe.
Combining Metlen’s experience in building energy infrastructure with PPC’s presence in the region and its energy management capabilities, the joint venture will bring online in the first quarter of 2027 the first tranche of batteries, with a power capacity of close to 300 MW in Bulgaria and Romania, as part of their broader agreement.
The cross-border collaboration covers storage projects with a total power capacity of 1.5 GW (3 GWh), and includes Italy as well as the two Balkan countries. Under the business model, the companies will share revenues 50-50, in line with their stakes in the joint venture.
Of this total, 1 GW was announced as due to come online within 12 months, giving further impetus to battery investment in Southeastern Europe. This could help strengthen the stability of neighbouring countries’ electricity systems, make low-cost midday electricity available during higher-priced hours and provide flexibility services.
PPC will manage the batteries commercially, drawing on its presence in the three markets where the projects will operate. Metlen, meanwhile, will contribute its expertise in developing and building the projects.
The benefits of the partnership
The partnership between the two Greek groups reduces the risks in their business plans. PPC secures the construction of a large share of the batteries it needs to use surplus energy generated by its nearby solar and wind farms during peak evening demand.
In doing so, it safeguards the renewable energy projects it is developing in the region, reducing their exposure to curtailment and wholesale price fluctuations.
For Metlen, the alliance supports the export to neighbouring countries of the vertically integrated utility model it applies in Greece. It follows the approach it has pursued in recent years: developing solar and wind farms across Southeastern Europe and adding batteries to its portfolio to create an attractively priced generation mix, which it then supplies to large customers across the wider region.
The partnership with PPC also forms part of Metlen’s expansion across a range of countries, both in and outside Europe.
This is the second time in the past two years that the two groups have joined forces, and again the cooperation is cross-border. They first did so in April 2024, when they announced a three-year framework agreement under which Metlen would develop, and PPC would subsequently acquire, a portfolio of up to 90 solar farms in Italy, Bulgaria, Croatia and Romania.
Both groups are expanding in Greece
Both groups are also significantly strengthening their presence in Greece. Last week, Metlen and the Karatzis Group inaugurated the country’s largest standalone battery and one of the largest in Southeastern Europe, at Nees Karyes in Larissa. The 330 MW merchant project was developed through a joint investment vehicle set up by the two companies.
In PPC’s case, three batteries with a total power capacity of 150 megawatts are due to enter commercial operation shortly at Meliti, Ptolemaida and Amyntaio, Konstantinos Natsis, General Manager for Renewable Energy Project Construction at PPC Renewables, said at the 8th Renewable & Storage Forum.
Konstantinos Mavros, chief executive of PPC Renewables, also spoke at the conference about the group’s strategic plan, the synergies from its presence in seven countries and its expansion into Southeastern Europe. He said the aim was to add 1.5 to 2 GW of new capacity each year. Most of the projects due for completion in 2027 are being built in Greece, with the group treating the wider region as a single energy market.