TERNA Energy reaches 2,000 MW target ahead of schedule

TERNA Energy will meet its expansion goals, two to three years ahead of target, hitting 2,000 MW. Instead of 2025, the date set in its original schedule the company is a breath away from meeting this ambitious target.

Earnings for last year show that TENERG has a portfolio of projects in operation, under construction, and in the licensing phase, with a capacity of 1,938 MW. In other words, it is only 62 megawatts from the critical number. It is only a matter of time, maybe one or two years, taking into account turmoil in the global economy, before it reaches, or beats, this target.

The key to all this, apart from the company's solid finances and dynamic course, is its green power. In times of crisis, renewable energy sources (RES) have been one of the safest investment havens, according to international companies such as Wood, which rank TENERG shares among its top investment picks.

At a time when investments are being severely tested amidst extreme volatility, the stability of returns offered by RES highlights their hidden added value. In fact, when asked if the low price of oil harms their competitiveness, companies, like Wood, believe that this is not the case. For the simple reason that the current low-price levels of "black gold" are not sustainable in the long run.

At the end of March, due to the pandemic and the price war between Saudi Arabia and Russia, the price of oil had fallen below $22. But efforts to reach a compromise with major producers on lower production have already pushed prices above $30 and gradually this is expected to keep rising when the pandemic is over and demand increases.

Resilient to crises

However, regardless of the price of "black gold", the experience from crises so far, such as that in 2008 and then in 2010, show that RES is resilient. Because of their defensive nature, the fact that wind and photovoltaic parks take priority in national grids and the current regime securing stable tariffs, they are more resilient than other sectors of the economy, such as tourism, industry and retail trade.

When asked whether the crisis increases the risk of derailment for Greek and pan-European plans to shift from coal to RES, experts say that this is minimal. According to Wood, such a scenario is very unlikely as any retreat by Europe on the Green Deal would hit its main production network. For many years, one of Europe's main sectors has been energy, with all businesses in the field, large and small, operating in RES.

Investments exceed 1.5 bln euros

In these conditions, TENERG recently acquired from RF Energy a portfolio of licensed and to-be-licensed wind farms, with a total capacity of 270 MW. A move that raises the capacity of new parks being launched in the Greek market to 400 MW, with a total investment value of 550 million euros.

In total, TENERG's energy investments in Greece are above 1.5 billion euros, as stated by its president, George Peristeris, upon the presentation of its financial results. Part of these investments concern storage projects (stored hydropower in Amfilochia, Amari, Crete) and new wind farms (Evia and Central Greece). In terms of installed capacity, TENERG has 1,390 MW power projects in different parts of the world, while those under construction or licensed reach 548 MW.