METLEN and Tsakos Group Partner on Major Greek Hybrid Power Project

METLEN strikes JV with Tsakos for a flagship Greek hybrid power project

METLEN Energy & Metals has signed a strategic partnership with the Tsakos Group to build and run one of Greece’s largest hybrid power projects. The plan combines a big solar farm with grid-scale batteries – exactly the kind of kit that helps the system soak up midday sunshine and release it when demand peaks.

This is a sizeable, multi-year build. If METLEN delivers on time and budget, it could become a cornerstone reference project and a useful earnings contributor in the late 2020s.

What METLEN has actually announced

• Structure: A joint venture special purpose vehicle (SPV – a dedicated project company) with Tsakos Group owning 60% and METLEN 40%.
• Technology: A 251.9 MW photovoltaic (solar) park paired with an energy storage system sized at 375 MWh (megawatt-hours – a measure of stored energy), located in Central Greece.
• Timeline: Investment implementation expected to start in 2026, with completion targeted for early 2028.
• Roles: METLEN will take an equity stake, act as constructor, and integrate ongoing commercial energy management (optimising when the plant generates or discharges to market).
• Claimed scale: Described as one of Greece’s largest hybrid power generation projects.

Key project facts at a glance

Partner split	Tsakos Group 60% / METLEN 40%
Solar capacity	251.9 MW (photovoltaic)
Battery storage	375 MWh
Location	Central Greece
Start	2026 (expected)
Completion	Early 2028 (targeted)
METLEN roles	Equity, construction, commercial energy management

Why this matters for METLEN shareholders

METLEN is doubling down on next‑generation renewables by taking a stake, building the project, and running its commercial optimisation. That places the company across the value chain, which can be attractive if well executed.

A hybrid project of this size is strategically useful for the Greek grid because storage helps smooth solar’s intermittency. For METLEN, that means potential revenues from construction, plus future earnings from its 40% equity position and from ongoing energy management. The RNS does not quantify any economics, but the direction of travel – scale renewables and battery storage – aligns with the company’s energy‑transition narrative.

How big is 251.9 MW plus 375 MWh?

251.9 MW is a large solar park by European standards. The 375 MWh battery gives the site the ability to store and release a material amount of energy. The power rating of the battery (how quickly it can discharge) is not disclosed, so we cannot convert this into hours of output, but it is clearly grid‑scale.

Financial context: can METLEN fund and deliver?

METLEN highlights a strong financial base and blue‑chip listings. It is primary listed in London, secondary listed in Athens, and a constituent of the FTSE 100 Index.

2024 revenue	€5.68 billion
2024 EBITDA	€1.08 billion (up 7% year-on-year)
2024 net profit	€615 million
Adjusted net debt	€1.78 billion
Net Debt/EBITDA	1.7x

EBITDA (earnings before interest, tax, depreciation and amortisation) is a broad measure of operating profit. A Net Debt/EBITDA ratio of 1.7x indicates moderate leverage and suggests capacity to fund growth, though the RNS does not specify the project’s financing plan or capital cost.

The company also flags a strong ESG profile, including a unique Greek position in the Dow Jones Best‑in‑Class Emerging Market index and mentions across MSCI, Sustainalytics, ISS, S&P Global ESG, LSEG, CDP, FTSE Russell, ESG Book, EcoVadis, Bloomberg and IdealRatings. That can matter when courting project finance and securing stakeholder support.

Strategic read-through: building the “Utility of tomorrow”

METLEN frames this as a landmark hybrid project that it will also manage commercially. That matters. The value in batteries often lies in smart energy management – bidding into power markets, arbitraging prices, and supporting grid services. Owning this capability can be a durable edge.

Partnering with the Tsakos Group brings local heft and risk sharing. With a 60/40 split, METLEN still has meaningful skin in the game without taking the majority burden. The 2026 to early 2028 window gives clear execution milestones for investors to track.

What the RNS does not disclose

• Capital expenditure, returns, and IRR – not disclosed.
• Funding structure (equity vs. debt, project finance terms) – not disclosed.
• Offtake or revenue model (e.g. power purchase agreement vs. merchant) – not disclosed.
• Battery power rating, chemistry, and duration profile – not disclosed.
• Permitting status and grid connection agreements – not disclosed.
• Construction schedule detail beyond headline dates – not disclosed.

Risks to watch

• Permitting and grid connection: timelines can slip if approvals lag.
• Supply chain: solar modules and batteries are global markets with price and availability swings.
• Execution: METLEN is the constructor; delivery risk sits with the group during build.
• Market risk: storage revenues depend on power‑price spreads and ancillary service prices.
• Schedule risk: the early 2028 target is firm but not guaranteed.

My take: a credible step-up in Greek renewables

On balance, positive. The project is large, clearly strategic, and METLEN is positioning itself where value accrues – at construction and in ongoing optimisation. The 40% stake keeps exposure meaningful without overreach.

The gaps are the usual ones: we do not yet know capex, returns, the offtake route, or the project finance mix. Those disclosures will determine how accretive this is in practice. For now, the combination of scale, partnership, and an achievable two‑year build window makes this a sensible move in METLEN’s energy transition playbook.

Potential catalysts to monitor

• Permitting and grid connection updates.
• Final investment decision and financing package.
• Engineering, procurement and construction milestones through 2026–2027.
• Commercial strategy for the battery (merchant vs. contracted revenues).
• Commissioning progress into early 2028.

Quick answers to likely investor questions

• Is this binding? The RNS says a strategic partnership has been signed and that METLEN will participate in the SPV. Specific contract terms are not disclosed.
• When might it contribute to earnings? Construction activity could start in 2026; full plant operations are targeted for early 2028.
• How will it be funded? Not disclosed.
• Is there a PPA? Not disclosed.

If you want to read more about the company, see METLEN’s site: www.metlengroup.com.