Greek power utility PPC has reached an agreement with construction and energy group GEK-TERNA for the purchase and transfer to Crete of a 147 MW gas-fired power plant, currently stationed in the Viotia area.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer when energy demand typically peaks.

PPC has included Heron I, the GEK-TERNA gas-fired power plant, in its package of solutions for energy sufficiency on Crete, both before and after the completion of a grid interconnection project to link Crete and Athens.

PPC and GEK-TERNA are expected to complete their agreement imminently so that the power plant’s transfer and reinstallation procedure can commence as soon as possible.

An agreement for PPC’s purchase of the power plant was reached by the two sides a while ago, but a remuneration formula for the power utility’s operation of the power plant on Crete, still not fully linked to the mainland grid, had remained pending.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills. PPC will cover the other 25 percent.

The European Commission needs to approve the remuneration formula as it involves state aid.