The Greek company DAMCO ENERGY S.A. (“DAMCO”) announces the signing of the agreement for the cooperation with AD Power Plants of Northern Macedonia “AD ESM” for the Alexandroupolis natural gas fired power plant.

The agreement was signed today in Skopje by the President and Managing Director of DAMCO, Mr. Christos Copelouzos, and the President of the Management Board and General Manager of AD ESM Mr. Vasko Kovacevski, in the presence of the Prime Minister of the Republic of North Macedonia Mr. Zoran Zaev.

AD ESM will participate with 25% in the share capital of ”Alexandroupolis Electricity Production SA”, the SPV that will finance, construct, own and operate a natural gas fired power plant in the area of Alexandroupolis, currently fully owned by DAMCO.

The Alexandroupolis power plant is in the crossroads of the electricity and natural gas networks of the region. It is currently licensed for a capacity of 662 MW which is anticipated to increase at circa 800 MW and is being designed and developed using state of the art and ultra-efficient technology.

AD ESM will also execute a long-term Power Purchase Agreement (PPA) for the off taking of a proportional to its participation share of the power plant’s annual electricity production with a view to secure the energy supply for the ever-increasing demand of North Macedonia, in a reliable and cost-effective way. In this context, AD ESM will have the possibility to procure and source directly the associated natural gas for the production of its allocated, under the PPA, electricity output, implying that through this agreement ESM will ensure a fully integrated energy supply chain.

Mr. Christos Copelouzos, President and Managing Director of DAMCO, stated:

“We are delighted to start this exciting cooperation today, in a project of great strategic and commercial importance not only for our companies but also for our countries. Apart from the benefits for the businesses and the consumers in Greece and North Macedonia, the project will give the chance to our companies to play a broader significant role in the markets of our region, which are undergoing drastic transformation and reform”.

AD ESM’s President of the Board Mr. Vasko Kovacevski added:

“This investment is very important for us because it will provide a more reliable and stable power system, which is a necessity in every country. Electricity knows no borders, and the region must strive for energy connectivity, mutual cooperation and joint investments”.

The Alexandroupolis Power Plant is scheduled to commence its operation within 2023.

For additional information concerning DAMCO ENERGY you can visit: www.copelouzos.gr

For additional information concerning AD ESM you can visit: www.esm.com.mk