Power grid operator IPTO, guided by consultants and legal experts, has prepared a concession agreement clarifying the roles of the operator and its subsidiary firm Ariadne Interconnection in the development of the Athens-Crete electricity grid interconnection. This is needed to avoid future complications in Brussels.

The concession agreement makes clear Ariadne Interconnection’s involvement in the venture is limited to the development stage, noting the subsidiary firm will not maintain any operational or management interests once the project is delivered to IPTO for operation.

RAE, the Regulatory Authority for Energy, has warned that any managerial involvement in the project by a company such as Ariadne Interconnection, not a certified operator like its parent company, will lead to complications at the European Commission and could delay the project, to be developed as a national project, not a PCI project promising EU funds.

RAE’s concerns are made more acute by the prospect of Ariadne Interconnection’s prospective split from IPTO as part of a procedure to offer a minority stake to third parties. Ariadne Interconnection is currently a fully-owned IPTO subsidiary.

Clarification on the project roles of IPTO and Ariadne Interconnection will enable Ariadne Interconnection to seek minority shareholders.

IPTO has noted a 40 percent stake of Ariadne Interconnection will be offered to investors to help finance the project without the burden of bank loans.

State Grid Corporation of China (SGCC), IPTO’s strategic partner with a 24 percent stake, has expressed an interest to acquire a 20 percent stake in Ariadne Interconnection.