IPTO, Greece’s power grid operator, will today inaugurate an interconnection project linking the island Mykonos with the mainland grid, in what is expected to be a festive occasion involving the operator’s top officials. However, the true concerns of these officials will be focused on an anticipated response from Euroasia Interconnector, a prospective partner in the development of Crete’s major interconnection, to link the island’s grid with Athens.
The two sides are vying to secure control of the Crete project’s development.
The Euroasia Interconnector consortium, which has insisted that it was formed to develop the Greek, Cypriot and Israeli power grids via a Crete interconnection as an entire project, is expected to deliver a response today to an IPTO proposal for the establishment of a special purpose vehicle (SPV) by the two firms.
This SPV, planned to take on the project’s financing and development, would be based on terms of a MoU signed by the two sides last October, seen as the only way of resolving the dispute.
At their most recent meeting, hosted by RAE, the Regulatory Authority for Energy, IPTO and Euroasia Interconnector were given until July 12 to reach an agreement for the SPV’s establishment.
Besides the prospective stakes and roles that could be assumed by IPTO and Euroasia Interconnector for Crete’s major interconnection, the financial commitments and capabilities of the respective sides could also prove to be a stumbling block.
According to sources, IPTO has already declared it is ready to provide guarantees concerning its ability to participate in the SPV’s initial equity line-up, while, from the other end, Euroasia Interconnector has not made such a commitment, despite persistent questioning from IPTO and RAE.