| Project Detail |
Provision of a senior loan of up to EUR 75 million in favour of Mytilineos S.A (the "Company" or "Mytilineos") for the construction and operation of a 826 MW Combined Cycle Gas Turbine ("CCGT") power plant located at the Agios Nikolaos Energy Complex in Viotia, central Greece (the "Project").
Project Objectives
The Greek electricity sector is embarking upon a fundamental transformation, ending its reliance on lignite and replacing this with a widespread rollout of renewable energy and a few significantly less carbon intensive gas generating units. The ambitious strategy sets out to phase out all existing coal-fired plants by 2023 and close or completely repurpose the coal plant under construction before 2027, one of the fastest exits from coal in the European Union.
An economic analysis incorporating shadow carbon prices and security of supply and an assessment focusing on the Projects consistency with a low carbon transition of the Greek electricity sector and the Paris Agreement goals have been carried out. The Project was compared to a low carbon counterfactual characterised by no new fossil fuels plants and the Bank has concluded it represents the most economic pathway for the Greek electricity sector to meet the Paris Agreement goals. Consistent with low-carbon transition and the Paris Agreement goals the carbon lock-in risk for the Project has been determined to be low across the assessed technical, economic and institutional factors.
The Project has been assessed as critical to ensuring security of supply by the Greek transmission system operator and gas is identified in the Greeces National Energy and Climate Plan (the "NECP") as an important precondition for enabling the accelerated coal-phase out and for achieving the target of 42% reduction in greenhouse gas emissions by 2030. The Project will also support the ramp up of renewable energy in the Greek system. |
