theodore terzopoulos: development of the retail gas market in greece

Development of the retail gas market in Greece

Does the retail gas market in Greece contribute to the exit from the financial crisis?

Does the Public Gas Networks (DeDa) SA play any role in this direction?

By

Theodore TERZOPOULOS Chief Executive Officer

DeDa SA


Sustainable Energy Future meeting the energy needs with the lowest possible CO2 emissions.

natural gas emits less CO2 natural gas supports sustainability.

natural gas in Greece can become a valuable development tool in the country's effort to exit from the financial crisis.

Areas where DeDa SA operates (light green) and will operate (orange and purple)

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National High Pressure Transmission System

Trans Adriatic Pipeline (TAP)

DEDA: Areas with Existing Distribution Networks (1st Development Phase, 2018-2023). DEDA: Areas of 2nd Development Phase, 2019-2023. DEDA: Areas of 3rd Development Phase, 2020-2023.

DSO ATTIKI, DSO THESS

Central Macedonia

Katerini

Alexandria

Serres Kilkis

Eastern Macedonia - Thrace

Alexandroupoli

Kavala

Drama

Xanthi

Komotini

Central Greece

Lamia

Halkida

Thiva

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DeDa SA at a glance…

1. 510 km of networks, spread in 12 cities as follows:

2. 147 industrial and 13 commercial final consumers 3. 11 gas suppliers who use the networks 4. 2.7 TWh of distributed gas 5. A workforce of 63 direct and indirect employees (FTEs) for the

operation, maintenance and the other activities of the company 6. A turnover of about 500,000€/month

Sociocentric role of DeDa S. A.: Assistance to the reduction of the energy poverty

Almost all the areas where DeDa S.A. operates or will operate exhibit high energy poverty estimate (an index associated proportionally to the average disposable income and inversely with degree days).

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Region Degree Days Available Income

2016 (€) Energy poverty

estimate

E. Macedonia & Thrace High Very Low

Peloponnese Average Average

Epirus High Average

Central Macedonia High Average

Western Macedonia High High

Western Greece Average Very Low

Central Greece Average Very Low

Source: Eurostat, Deloitte Analysis Low Average High DSO ATTIKI, DSO THESS

Viability and sustainability are considered as key drivers for implementing the company’s strategic orientation.

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Economic growth and prosperity of local communities

Internal gas market development in a viable and sustainable way

Existing Network

Performance

Optimization

Viability

Securing

Investment

Plan’s

Performance

Investment Risk

Effective

Management

Supporting local

economies

Maximize

Environmental

Benefits Strategic Priorities

Strategy

Implementation initiatives

Vision

Sustainability




Funding of the projects as the most important factor for the gradual development of the regional market and the company

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Networks Development

1st Phase Approved

Investment Plan

2017-2036

Central Greece Central Macedonia Eastern Macedonia & Thrace

2nd Phase Under

consideration and

Conditional

Western Greece Peloponnese

3rd Phase Conditional

Western Macedonia Epirus, Aegean Islands

DSO ATTIKI, DSOTHESS

1st Phase of Development (Approved Business Plan)

Region Cities Networks

length to be constructed

CAPEX New

Connections

Central Greece

Chalkida

300 km 99 mil. €

38,000 residential Karpenisi Amfissa Lamia

5,000 commercial Livadia Thiva

Central Macedonia

Alexandria

340 km 78 mil. €

25,000 residential Veria Kilkis

Giannitsa 4,000 commercial Katerini

Serres

East Macedonia & Thrace

Alexandroupolis

500 km 141 mil. €

45,000 residential Komotini Xanthi Drama

2,000 commercial Orestiada Kavala

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The investment plan of the 1st Phase is close (*) to be financed at 68% from EU funds and EIB loan.

(*) Final decisions to be taken by end S1 2017

EU Grants

Eastern Macedonia-

Thrace

€32 mil. 23% of the investment

Central Greece €21,2 mil.

21% of the investment

Central Macedonia €21,2 mil.

27% of the investment

€74,4 mil. 23% of the Total

investment

TOTAL

€61,9 mil. 44% of the investment




investment





investment

EIB Loan Total

€140,7 mil.

€98,7 mil.

€78,1 mil.

€317,5 mil.

Investment Cost

The current business plan for the period 2017-2036, creates very

significant benefits on an economic and social level.

Economic and Social benefits Eastern Macedonia

and Thrace Central Greece Central Macedonia Total

CO2 reduction €66,5 mil. €89,6 mil. €79,5 mil. €237,9 mil.

Energy cost reduction €641,0 mil. €821,7 mil. €728,8 mil. €2.211,1 mil.

Added Value €275,1 mil. €280,1 mil. €197,7 mil. €755,7 mil.

Total €982,6 mil. €1.191,4 mil. €1.006,0 mil. €3.180,0 mil.

New Job Positions 5.627 FTEs 4.817 FTEs 3.601 FTEs 14.072 FTEs

Notes:

• The assessment of the added value and employment is based on statistical data from the latest available input / output table

(Eurostat) identifying the interconnections of economic activities in Greece (Leontief model)

• The conversion in monetary terms is expressed in 2016 constant prices

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CO2 reduction

Energy cost

reduction

Added Value

(GDP Increase)

Enhancing

employment

The 2nd Phase Investment Project consists of installing networks in the Regions of Peloponnese and Western Greece.

Peloponnese Western Greece

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Patra

Agrinio

Pirgos

Korinthos

Argos

Tripoli

Sparti Kalamata

The 3rd Phase Investment Project consists of installing networks in the Regions of Epirus and Western Macedonia.

Epirus Western Macedonia

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Kastoria

Florina

Arta Preveza

Ioannina

The 3rd Phase Investment Project consists of installing networks in the islands of Lesvos, Chios, Samos, Rhodes and Crete.

Lesvos Chios

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Rhodes Samos

Crete


Thank you for your attention