IPTO, Greece’s power grid operator, and Euroasia Interconnector have been given a ten-day deadline by the Greek and Cypriot regulatory authorities for energy – both pressured by the European Commission – to reach an agreement for the development of Crete’s major grid interconnection.

The two sides are vying to secure control of the project’s construction.

IPTO has offered a convincing presentation concerning preliminary efforts for the project’s financing and technical studies, energypress sources informed.

The operator has an advantage provided by the content included in a Memorandum of Understanding (MoU) signed by the two sides last October, envisioning a stake of at least 51 percent for IPTO in the project, 39 percent for Euroasia Interconnector, and 10 percent for private-sector investors, possibly investors developing major renewable energy projects on Crete.

The MoU foresees the establishment of a special purpose vehicle (SPV) by IPTO and Euroasia Interconnector for the project’s financing and development. This appears to be a pivotal detail causing disagreements between the two sides.

Euroasia Interconnector contends that it is responsible for the project’s construction and has noted the SPV should only concern financial aspects.

The Euroasia Interconnector consortium was formed to develop links between the Greek, Cypriot and Israeli power grids via a Crete interconnection.

The European Commission has made efforts to support collaboration between the IPTO and Euroasia Interconnector for joint development of the project.