ATHENS – Greek industrial group Mytilineos has offered to pay for the revamp of a major coal-fired plant owned by State-controlled Public Power Corp (PPC) to keep it operational after 2019, a source at Mytilineos said on Friday.
Mytilineos submitted a proposal to PPC suggesting that it, possibly with other potential investors, pay €110-million towards upgrading the Amyntaio plant in northern Greece, the official said on condition of anonymity.
Mytilineos, PPC's biggest client, asked PPC that Mytilineos and its prospective partners secure a long-term power supply contract, the official added.
A PPC official confirmed that it received the proposal.
Under European Union environmental rules, the 600 MW plant needs to be shut down in 2019 unless it is upgraded.
PPC, whose finances were badly hurt during Greece's eight-year economic crisis, says the plant is crucial in securing the country's power supply. But it has said it is unwilling to put more money into coal-fired plants and has sought partners to modernise it.
Mytilineos has a 12% share of Greece's power wholesale market and a 4% share of the retail market.
Under Greece's latest international bailout, PPC will sell 40% of its coal-fired capacity this year after a European court ruled that the utility had abused its dominant position in the coal market. That includes three existing plants and one yet to be built.
Greece has said that 15 investors have expressed interest in acquiring PPC's coal-fired plants.
Athens has also promised its lenders that PPC's retail market share will fall to below 50% by 2020 from about 87% now.