On June 20th, a shareholding rights transfer ceremony was held in Athens, marking the successful purchase of a 24% stake in ADMIE, Greece’s national power grid company, by State Grid. This represents another major venture on the part of State Grid in the European market, following the acquisition of REN and CDP Reti, and is a new milestone in the company’s international development. This is the latest breakthrough made by State Grid in actively promoting the development of the Belt and Road Initiative, coming on the heels of the Belt and Road Forum for International Cooperation, and opens a new chapter in energy cooperation between China and Greece. This acquisition is of great significance to the implementation of the Belt and Road Initiative, as it deepens Greek involvement and strengthens the comprehensive strategic partnership between the two countries.
As part of the Mediterranean grid, ADMIE has connected its grid with neighboring countries, such as Albania, Macedonia, Bulgaria, Turkey and Italy, and is expected to connect with other Mediterranean countries and regions, including Cyprus, Israel and North Africa, over the long term. Greece is an important hub for the interconnection of Eurasian and Asian, European, and African power grids. ADMIE is responsible for operating and maintaining all power networks in Greece, playing an important role in the country’s power development. In July 2016, ADMIE decided to sell 24% of its shares through public tender. After fierce competition with investors from other countries, State Grid successful won the bid in October 2016. During the negotiations, State Grid’s wealth of experience in international power infrastructure operation and its world-leading technological strengths earned it the recognition of the Greek Ministry of Energy and ADMIE. Apart from securing positions on the board of directors, State Grid will also send management delegates to ADMIE to take important positions such as Deputy CEO and CFO and participate in corporate planning, finance, construction and technology work. In addition, State Grid will conduct in-depth cooperation with ADMIE for grid development, investment and financing, grid operation, personnel training and new technology R&D and, with other shareholders, make concerted efforts to increase the value of ADMIE and contribute to local economic and social development.
On the day following the ceremony, Greek President Alexis Tsipras met the delegation led by Shu Yinbiao to congratulate State Grid on becoming a shareholder in ADMIE. He stated that he and the Greek government would firmly support State Grid’s efforts to improve the operation of ADMIE. “The door is always open to State Grid”, said Mr. Tsipras, restating his wish that State Grid will make full use of its advantages in promoting the development of the Greek power grid, supporting grid interconnection between Greek islands, promoting renewable energy development and improving the strategic position of Greece as regards grid interconnection in Southeastern Europe and between Europe, Asia, and Africa. Mr. Gao Wenqi, Charge d'Affaires of the Chinese Embassy in Greece, the Greek Ministers of Energy and Internal Affairs, representatives of the Greek Public Power Corporation and ADMIE and Mr. Shu Yinbiao, Chairman of State Grid, attended the shareholding rights transfer ceremony. Gao Wenqi pointed out in his remarks that the Chinese government attached great importance to the investment in ADMIE and actively supported the strengthening of mutually beneficial energy cooperation between State Grid and its Greek partners. The Greek Minister of Energy and the corporate representatives extended a sincere welcome to State Grid. They expressed their appreciation of the achievements made by State Grid and hopes that State Grid would promote the accelerated development of ADMIE to help Greece address challenges in power development.
State Grid Chairman Shu Yinbiao pointed out in his remarks that, as the world’s largest utility, State Grid adheres to mutually beneficial cooperation and is committed to its role as a long-term, stable strategic investor in overseas energy infrastructure investment, so as to create more value for its international partners. At present, State Grid has invested in backbone energy networks in six countries, including Italy, Portugal and Australia, and manages assets worth $56 billion. In all its projects, State Grid has achieved stable and sound operation, earning the approval of both cooperate partners and the local community.
According to Shu Yinbiao, as an important part of the Mediterranean Grid, the Greek power grid is an interconnection hub for Eurasia and between Asia, Europe, and Africa. As such, there is huge potential for development. After becoming a shareholder in ADMIE, State Grid will make full use of its advantages in technology, management and talent development to constantly improve the management of grid operations and make ADMIE a first-class, highly-efficient power grid. As a shareholder, State Grid will actively promote the construction of related projects, such as grid interconnection between islands, and expand the size of grids connected and capacity of power supply. State Grid will also support Greece’s endeavor to develop and use renewable energy and promote the transition to a clean and low-carbon energy development model, providing a sustainable power supply for the economic prosperity and social development of Greece.
Shu Yinbiao remarked that the Belt and Road Initiative proposed by Chinese President Xi Jinping received a positive response from the international community, providing new and historic opportunities for the deepening of energy cooperation between the two countries. State Grid is willing to regard this investment in ADMIE as the start of a new era of in-depth and extensive cooperation with Greece and a means to promote the traditional friendship between the two countries, as they work together to build “One Belt, One Road”, achieve mutual prosperity and make new and greater contributions by adhering to the principles of extensive collaboration, joint construction and mutual sharing.
Mr. Zhu Guangchao, Deputy Chief Engineer and Director of the Department of International Cooperation, and representatives from State Grid’s Department of International Cooperation, Research Office, and State Grid International Development also attended these events.
Sources: SGCC Research Office, SGCC Department of International Cooperation