PPC’s 2024-2026 Strategic Plan for Romania: accelerating investments to record highs

EBITDA Target: €2.3 Billion by 2026, Doubling to €3 Billion by 2030.

PPC Group presented today, in London, its Strategic Plan for the period 2024-2026. The aim of the management is for PPC Group to become an energy leader in the wider region and an important player in Europe. The plan, which includes the Romanian operations, is based on a holistic approach around the green transition and the three pillars:

– clean energy production

– modernized and digitalized networks

– customer-centric services.

Romania is a strategic country in the PPC Group and in the region, enabling the group to create an energy corridor spanning the Southeast Europe, with huge potential for value creation and generating synergies with benefits to be seen in all countries.

The country’s attractiveness and growth potential are illustrated by PPC’s estimates at a macro level, where the Group sees Romania’s electricity demand increasing by 10% by 2030, which means that further investments in clean energy sources are required, to stimulate competitiveness of the economy. PPC expects Romania’s electricity system to grow by 48% in size in this interval, effectively adding 6.4 GW of clean energy capacities to help address the demand.

As such, Romania is a major development country for PPC, making it a key destination of the planned investment projects. On a group level, PPC has a 18 GW gross project pipeline for renewable energy capacities, out of which one third is in Romania. Therefore, by 2026, PPC expects to commission 1.3 GW of new green generation capacities in Romania, adding to the current approx. 600 MW it operates in the country. As production from RES at PPC group level will come from diverse weather and geographical environments, it will create safeguards and overlaps between countries, contributing to an increasing resilience model in the region.

Grids are another point of development in focus for the next three years. The key transformation pillars for the distribution area are targeting the network modernization to increase RES capacity and connections, as well as transport and electrification. Investments will continue to develop the smart grid components, network automation and intelligence – all of them adding to the increased resilience of the grid and ultimately better service for customers. In order to achieve these ambitions, the regulatory framework is expected to support higher investment levels.

In retail, the goal is to reach an affordable and smart supply of energy, while adding customer centric value-added services. Romania’s market share, despite increased competition, is projected to remain stable to 18% in the years to 2026, while focus will be given on increasing customer satisfaction and building a fit for purpose organization.

This development strategy will pay off with significant earnings growth expected for the 2024-2026 period, where EBITDA is projected to grow from 1.5 billion euros (on a pro forma basis for Romanian operations) in 2023 to an estimated 2.3 billion euros in 2026, with Romanian operations having an approximately 20% share across the period.

Summing up, PPC’s integrated model is well positioned in the Energy Transition, focusing on its core mission to build grids, renewables, and flexible assets to serve its customers. Romania will play a pivotal role in the region and the group’s development plans.

The new PPC Group we are building is international, robust, customer-centric and modern to create value sustainably for all stakeholders. The period 2024-2026 will be one of investments of 9 billion euros, creating value for the Group and added value for customers, shareholders, employees and the environment in all the countries we operate in. With our new business plan, the PPC Group is strategically positioned in the field of green transition. Infrastructure green and the tools we create will enable our customers to reap the benefits of the future of clean energy and its possibilities in the new era of electrification. more modern, green and customer-friendly company across the region We are the leading clean energy company in South East Europe, with a leading role in a very competitive international energy environment. We are building on the success of recent years and the company’s renaissance. We aim to grow responsibly and prudently financially to ensure that the PPC Group will effectively fulfill its essential role in all the countries in which it operates,” said the Chairman and CEO of PPC Group, Georgios Stassis.

PPC has completed the acquisition of Enel’s activities in Romania in October last year.

2024-2026clean energyEBITDAelectricityenergyGeorgios StassisgreengridsINVESTMENTSPPCRomaniastrategic plantarget
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