Brussels opposes RAE move giving IPTO Cretan link control

The European Commission has raised objections to last week’s RAE (Regulatory Authority for Energy) decision awarding power grid operator IPTO financing and development control of Crete’s urgently needed major-scale electricity grid interconnection with Athens.

Just days ago, IPTO established a special purpose vehicle (SPV) named Ariadne for the project.

Brussels, in an email forwarded to all parties involved, noted that RAE cannot award Crete’s major-scale link with Athens to any party until the end of the year, the time period given to Euroasia Interconnector – a consortium of Cypriot interests responsible for a wider PCI-status project planned to link the Greek, Cypriot and Israeli power grids – to decide if it will utilize a right offered for a 39 percent stake, or less, in the venture to develop the Crete-Athens link.

The European Commission’s move essentially comes as a warning suggesting the Crete-Athens link will be regarded as a national Greek project rather than a PCI-status European project if RAE’s decision to award IPTO the project remains valid.

The Euroasia Interconnector consortium wants to avoid legal action but cannot exclude such an outcome, sources informed.