Despite objections raised by the European Commission, the power grid operator IPTO is pushing ahead with bureaucratic procedures concerning the establishment of a special purpose vehicle (SPV) for financing and development control of Crete’s urgently needed major-scale electricity grid interconnection with Athens.

RAE, the country’s Regulatory Authority for Energy, last week gave IPTO permission to form the SPV.

However, Brussels has responded by noting that RAE cannot award Crete’s major-scale interconnection 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.

A company founding document for the new SPV, noting the PCI-status  project will be transferred to the operator once the interconnection is developed, was submitted to the General Commercial Registry (GEMI) three days ago.

According to the founding document, the SPV, named Ariadne and given a 25-year duration, will be headed by a five-member board that could be increased to 11 members.