PPP plans for North Aegean power link

A project to connect the electricity infrastructure of the Greek islands in the north Aegean with the mainland grid may be the first of its type to take place through a public-private partnership (PPP) procedure, rather than an investment program managed by IPTO (locally referred to as ADMIE), the Independent Electricity Transmission System Operator.

Unlike the prospective connection project for the Cyclades, whose details have already been established and tender procedures completed, and, furthermore, the project intended to connect Crete with the mainland grid, which is being handled by IPTO through a 10-year program, the connection project for the north Aegean islands has not been included in any of the operator’s development plans.

And this is so despite the fact that significant amounts are spent each year to provide electricity to the region, including large islands such as Lesbos and Limnos.

Interest has also been expressed by ventures for electricity supply to the region through large wind-energy parks that have been designed and granted licenses.

Also, according to information obtained by EnergyPress, the Development Ministry’s  public-private partnership division is extremely interested in developing the north Aegean’s electricity connection project through PPP procedures. Its interest was prompted by an untimely power outage on Santorini last summer, during the month of August, the tourism season’s peak period.

According to sources, further details for the north Aegean project are expected to be determined by the end of the year. The project’s developer could expect to be entitled to revenues generated by usage fees, sources said.

In the Cyclades, an IPTO-coordinated tender covering the islands of Syros, Paros, Naxos, Andros, Tinos, and Mykonos, was recently completed. Hellenic Cables and Italian firm Prysmian were granted deals for the project’s supply of underwater cables, while contracts for all over equipment were awarded to ABB and Alstom.