CEZ Group – the largest power utility and biggest public company in Central and Eastern Europe – accepted an offer from SIGDA – a local logistics company – to acquire Varna thermal power plant (non-operational) for a reported €50 mln.
The sale of Varna thermal power plant (TPP) is in line with CEZ strategy: the group is shifting its focus from South-Eastern Europe and Turkey to renewables in Central and Western Europe and the expansion of Temelin NPP in the Czech Republic. According to the chairman of CEZ’s supervisory board, V. Paces, the original plan had been to exit the Bulgarian market at once by selling all CEZ assets in one package but the bid for the power plant in Varna was attractive to the seller.
Varna black coal power plant has six generating units with a total installed capacity of 1,260 MW. It has been shut down since January 2015 due to non-compliance with the European environmental standards and could only be used in critical situations. CEZ purchased the plant for €206 mln in a privatization procedure in 2006. The operator originally planned to build a new CCGT capacity on the TPP Varna site, but lack of guaranteed gas supplies and poor market opportunities put the project on ice.
After the sale of TPP Varna, CEZ will be left with its electricity distribution company CEZ Distribution Bulgaria, the public supplier CEZ Electro Bulgaria, the retail arm CEZ Trade Bulgaria as well as two renewable energy plants. The company aims to complete the sale of those assets in Bulgaria in the next few months.
