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HEDNO is a chronic patient of the electricity market

By Harry Floudopoulos

After the successful sale of 49%, which was completed in September for a record amount (enterprise value 2.113 billion euros), the manager of the HEDNO distribution system was in the forefront again the previous days, for the wrong reasons this time, with due to the extensive damage to the network due to bad weather.

A bad weather that highlighted again the problems caused by the chronic devaluation and inaction of the past, when the manager’s investments shrank sharply under the weight of PPC’s bankruptcy in the period 2015-2019.

During the period in question, the manager’s investments experienced an unprecedented contraction, with the result that the level of services provided declined significantly. The effects of the sub-investment are visible in both winter and summer, when power outages increase sharply and weather conditions test the system’s resilience. However, in recent years the Administrator is trying to cover the lost ground by increasing his investments.

In this context, in fact, HEDNO for the first time in 2021 launched organized efforts for undergrounding of the distribution network, with first priority in forest areas or urban areas that include forests, as there are the biggest problems and there is a serious risk of fires. However, the first real fruits of the undergrounding program are expected to be visible with the completion of the first cycle of investments, not earlier than 2023.

Dramatic decline in investment

Regarding the situation of the company, however, the official data of the manager are indicative of the investments of the last years for network development projects, which show a dramatic decline in the last years. It is characteristic that in 2009 investments of 515.92 million euros were made, while in 2019 the number dropped to 144 million euros. It is emphasized that by 2014, despite the problems, the investments had been kept above the security limit of 200 million euros, which are the minimum necessary investments in order for the network to be maintained in a satisfactory condition. However, from 2015 onwards, investments fell below 200 million, namely in 2015 to 165.4 million, in 2016 to 162.9 million euros, culminating in 2018, when investments in the network recorded a record low. at 134.4 million euros.

It is noted that in 2009 the PPC group had given 174 million euros for projects to strengthen and improve the distribution network, ie more money than the total investment of 2018, a year in which only 41 million were given for projects to strengthen the network.

To understand the need for investment in the electricity grid, it is noted that these include repetitive projects, such as reinforcements, improvements, variations, new power supplies and aesthetic upgrades.

Something is moving

In the last two years, however, there has been a significant improvement and increase in investments for network projects implemented by HEDNO. In 2020 the amount of investments in the distribution activity reached 173.3 million euros, while in 2021 in the first half of the year we had a further improvement, as investments reached 98.5 million euros (an increase of 25.2% compared to by 2020).

The main thing, however, is that after years of inactivity and substantial lack of investment in this area, extensive actions have been launched to underground the network.

According to the 2022 planning, undergrounding will be implemented for a network of 1,000 kilometers with a budget of 100 million euros, while in 2023 it is planned to make undergrounding of a network of 1,500 kilometers, with a total budget of 150 million euros.

The largest part of the undergrounding concerns Attica, where about 30% of the total investments will be implemented, while a large part of the investments will also concern the islands (30%). According to information, the greatest weight will be given to areas that are close to forest areas or include forest areas, as there is the greatest risk of damage and fires.

It is noted that the undergrounding has already started to be implemented since 2021, when a large number of projects started to be constructed, some of which have already been completed, such as the undergrounding of the distribution network in Tatoi, in some other parts of Varybobi, as well as and in Paleo Psychiko.

Last year, undergrounding of networks in more than 20 municipalities throughout Attica, such as Ilion (Tritsi Park), North Attica (Thrakomakedones) and other places, such as Megara, also began and continues to this day. The projects that started in 2021 have a budget of 20 million euros.

Two more major undergrounding projects are expected to begin in Attica, namely in Palea and Nea Penteli, which is expected to be completed by 2023, and in Melissia. These two projects, with a budget of 10.5 million euros, concern the undergrounding of a network of more than 70 kilometers.

However, the largest project in Attica concerns the Municipality of Dionysos and will include all municipal units in the area, namely Kryoneri, Anixi, Drosia, Stamata, Rodopoli, Agios Stefanos, and will have a budget of 28.5 million euros. In total, it is planned to underground about 200 kilometers of overhead network.

Also last year, network undergrounding works began on islands, specifically in the Dodecanese, Cyclades and Crete. In other regions, undergrounding works began to be implemented in the Peloponnese and Western Greece. A total of 45km is planned to be underground, with a budget of 16.5m euros.

Finally, it is noted that the Recovery Fund has included grants for undergrounding of networks amounting to 60 million euros, which will finance projects with a budget of 150 million euros. These are projects that are expected to be implemented by HEDNO in the next 4 years.

Source: Capital

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