With an end goal being 2030, the Motor Oil Group is in the process of implementing the largest energy transition programme in Southeast Europe. It will total up to 4 billion euro, aiming to play a leading role in the country’s energy transition, as stated by Mr. Victor Papaconstantinou, CEO of MORE, in an interview with energia.gr. He emphasised that MORE has already invested more than 1.6 billion euro within two years, achieving spectacular growth and contributing decisively to the financial development of the Group.
Meanwhile he also points out that with the acquisition of ANEMOS RES, the company is closer to achieving the 2 GW goal that is set for 2030. Focusing on the energy management sector, he points out that the company has one of the most active and talented teams in the market, while emphasising the necessity of developing energy storage infrastructure due to the large penetration of RES in the country’s energy scope.
Mr. Papakonstantinou, as you have stated, MORE has already invested 1.6 billion euro since 2020, while the Motor Oil Group has also announced a very large investment plan until 2030. Do you think that MORE, as it is currently structured, is up to the challenge?
It is true that the Motor Oil Group is implementing the largest energy transition programme in Southeast Europe, with an end goal being that of 2030, totaling up to 4 billion euro and aiming to play a leading role in the country’s energy transition. According to this plan, strategic investments have been made, amounting to 2.5 billion euro in RES, which is of key importance for the Group, in petrochemical products, in natural gas, in biofuels, in hydrogen as well as in carbon dioxide capture and storage technologies. Subsequently, MORE has already invested over 1.6 billion euro in two years, achieving spectacular growth and contributing decisively to the financial development of the Motor Oil Group. In particular, the Group’s EBITDA that corresponds to RES activities, has increased threefold, fulfilling almost 45% of the target for 2030, amounting to 250 million euro. From the very beginning of MORE, we set the bar of expectations high by seeking to play a leading role in the energy sector in a short period of time. I believe that we have succeeded and am optimistic that despite whatever challenges we face in the industry as a whole, we will continue to dynamically grow.
The addition of ELLAKTOR’s green portfolio significantly increases your installed capacity and enables you to expand to markets abroad. Do you think the announcement of 2 GW by 2030 is an achievable target for MORE?
Allow me to disclose that just a few days ago, MORE completed the acquisition of ANEMOS RES (RES arm of ELLAKTOR) acquiring the remaining 25% of its share capital, while in December 2022 the initial 75% was obtained. This landmark agreement gives us a strong incentive for rapid growth, substantially and strategically strengthening MORE’s presence in clean energy production. ANEMOS RES’s excellent team has made a decisive contribution to the overall development of the company, while bringing us closer to achieving our 2 GW target for 2030. At the same time, the acquisition of 75% of Unagi, holder of a 51% stake in a portfolio of photovoltaic projects (the remaining 49% belonging to PPC) with a total capacity of 1.9 GW, further strengthens our presence in the field of alternative energy fields. Therefore, after these new strategic investment initiatives, we will already have a portfolio of RES projects and energy storage systems in various stages of development of over 3.0 GW, being one of the largest FOSE (Cumulative Representation Operators) in Greece.
Our intention is to consistently and efficiently grow our business cycle, focusing on diversified energy and giving even greater incentive to our developmental goals.
A key parameter for establishing green energy is energy management and its storage. How do you plan to address these challenges? Do you believe that these are more important issues than the challenge of getting a permit and building a renewable energy project?
As the attractiveness of state-guaranteed prices declines, and end consumers’ of green energy demand more bilateral agreements with producers, companies operating in the RES sector are called upon to develop the activity of electricity trading at unprecedented levels for the field. This activity is necessary to ensure the viability of businesses, but it requires major changes in our culture and priorities. These days, it is not enough to license and construct, you must also be able to manage the energy you produce. At MORE we have focused on energy management for years and I dare say that we have one of the most active and talented teams in the market today. Meanwhile, the development of energy storage infrastructure is necessary due to the large penetration of RES in the country’s energy production. I trust that the policy followed in our country is in the right direction. However, the operation of storage systems requires specialised knowledge as well as energy management skills to maximise the benefit of both the investor and the end consumer.
In your opinion, are there proper conditions for a green energy producer to be able to ensure long-term and reliable cooperation with a consumer today? Is there a sufficient institutional framework to guarantee it and if not, what are the steps that need to be taken?
Fixed price contracts between the producer and the end consumer is a complex issue that requires attention. The institutional framework is not the problem. The main issue is that the two sides are required to enter into a long-term commitment at an agreed price, which may not be valid in the future. However, these contracts are necessary for financing to exist. I estimate that in the future the role of intermediary companies will strengthen. They will be able to collectively represent the producers and unify the demand of the consumers, while playing the role of guarantor for both sides.
Are there investment funds for the development of RES in our country and to what extent does the banking sector support this effort?
The truth is that financing from banks is becoming all the more difficult. On the one hand, the increase in borrowing costs as well as the decrease in the profitability of RES, has reduced the rate of loaning that projects can secure. On the other hand, the absence of fixed prices guaranteed by the state and the dependence of projects on PPA’s, have changed the risk of new RES projects, leading to an increase in the request for new loans. The criticality of financing tools in the expansion of RES worldwide was also highlighted at the recent UN Climate Summit, COP 28, held in Dubai.
What have you observed regarding the Group’s RES units efficiency this year? How are you strengthening your “green” portfolio?
Our green portfolio is continuously being reinforced, steadily and methodically, so that we can substantially contribute to the sustainable development of the economy, the country’s energy transformation and the implementation of its environmental commitments. Just a few months ago, we completed construction and commissioned our projects in the region of Kelli, Florina and Tsamadorachi, Fokida, with a total capacity of 65 MW. This gives us a contemporary portfolio with a total installed capacity of 839 MW. In the meantime, we are growing our portfolio of projects under development as we recently licensed more than 450 MW of new projects with environmental permits and received final network connection terms for 287 MW. Additionally, over the next 4 years, 311 MW of new operational capacity is expected to be built in projects that are ready for construction or have already secured final connection to the network.
