EP Power Europe achieved exceptional results last year and successfully continued its transformation towards a carbon-free future
14. 6. 2021
EP Power Europe (EPPE), a subsidiary of the Energetický a průmyslový holding, a.s. (EPH), reported excellent financial results last year. Group revenues reached €5.3 billion, a 3% increase compared to 2019. Adjusted EBITDA even increased by 26% to €555 million. Cash generated from operating activities amounted to €798 million, €136 million more than in 2019.
“The results achieved show the performance and diversified nature of our operating assets and demonstrate the Group’s resilience even in the extremely challenging environment of the global coronavirus pandemic. At the same time, the Group has continued to transform its portfolio towards a more flexible and climate-friendly asset base. We have initiated construction of new highly flexible gas power plants in Italy and Northern Ireland. Additionally, we continue our project of conversion of coal power plants to 100% power production based on biomass. We decommissioned the Buschhaus lignite power plant in September 2020 and accelerated negotiations to close another German lignite power plant Deuben. We have also held a series of negotiations in France and Germany to shut down even more coal capacities in the near future. As a result, our entire French coal fleet of 1,190MW will be disconnected from the grid no later than spring 2022. In addition, in April 2021, we were successful in an auction with the German hard-coal power plant Mehrum (690MW), which will be placed in capacity reserve and will run only to ensure the stability of the transmission grid until its final decommissioning in early December 2021. We implement hereby our strategic goal – reduction of carbon emissions while maintaining high flexibility of our plants and reliability of power supplies,” says Jan Špringl, Vice Chairman of the Board of Directors of EP Power Europe.
The Group’s efforts are not only focused on decommissioning of existing CO2-intensive sources. EPPE is ready to meet the energy needs of its customers by implementing new projects while ensuring grid stability. For example, in Tavazzano, Italy, EPPE has started construction of a brand new high-efficiency gas-fired power plant with an installed capacity of around 790 MW, which will, upon its expected commissioning in late 2023, benefit from a 15-year capacity contract. In Kilroot, Northern Ireland, the Group has been awarded ten-year capacity contracts to support grid stability and, because of this, the construction of two brand new state-of-the-art gas-generation units with an installed capacity of approximately 700 MW is underway, which will also be commissioned in 2023 and will replace the currently running coal-fired power station. The new gas-fired units at Kilroot are the first step towards the construction of the Kilroot Energy Park, which aims to contribute to climate change targets. A biomass power plant with an installed capacity of 150 MW is also being prepared to start up in Gardanne, France.
The total installed capacity of the EPPE fleet reached 10.6 GW, while 84% of the energy produced in 2020 came from either zero-emission or low-carbon sources. While the Group is making progress towards becoming one of the most important electricity producers in the EU, it also intends to pursue its strategy of continuously reducing its CO2 footprint while maintaining security of supply for its customers and gradually improving its performance.
For more details, as well as for the definition of Adjusted EBITDA, please refer to the “EP Power Europe – 2020 Results” presentation available here.
About EP Power Europe
EP Power Europe (“EPPE”) is a subsidiary of Energetický a průmyslový holding (“EPH”) and was founded in 2016 by grouping several European assets under one umbrella and is headquartered in the Czech Republic. EPPE has been gradually growing through new acquisitions. EPPE owns operations across developed markets including the UK, Italy, Ireland, France and Germany with a focus on power generation and sophisticated renewable energy (biomass). Through a fleet of controllable power plants, EPPE provides security of supply as solar and wind renewables with their limited load factor can only partially cover the power demand. EPPE’s power generation portfolio provides a balanced and diversified mix of thermal and biomass power plants and other renewable sources.