Crete’s major-scale electricity grid interconnection with Athens, now entering its next phase following a government decision to not develop the link as a national project, meaning the project will not be included on the EU’s new PCI list, faces subsequent administrative and financing complexities.
Ariadne, as a fully-owned subsidiary of power grid operator IPTO, is entitled to develop this national electricity transmission project, but appears to lose the right should third parties enter its equity make-up as partners.
IPTO wants investors to take on a minority stake of up to 49 percent in Ariadne as a means of avoiding bank loans for the project’s development.
If third parties enter Ariadne’s make-up as shareholders, then the subsidiary will need to be re-certified as operator based on its new line-up. A second alternative would require RAE, the Regulatory Authority for Energy, to stage the competitive procedure to bring new investors into Ariadne.
Both options would be time-consuming, which is a major concern given the urgency of this project, needed to prevent looming energy shortages on Crete.
The energy ministry, fully informed on the complexities to be created by third-party entries into Ariadne’s line-up, is expected to soon seek further clarification on the matter from the European Commission.