RAE requests more IPTO details on Crete link project to set WACC figure

RAE, the Regulatory Authority for Energy, has requested additional data from power grid operator IPTO to determine the weighted average cost of capital (WACC) and regulated yield for Ariadne, an SPV established by the operator to develop the Crete-Athens grid interconnection.

Moves are also being made to recategorize the Crete-Athens link as a national project rather than a segment of the wider PCI-status Greek-Cypriot-Israeli electricity grid interconnection project, as has been the case until now.

Euroasia Interconnector, a consortium of Cypriot interests heading the wider project, has just warned that the loss of the Crete-Athens segment’s PCI status will prove costly for Greek consumers.

IPTO and Euroasia Interconnector have been at odds for control of the wider grid interconnection’s Crete-Athens segment.

Details requested by RAE from IPTO include a precise budget figure for the Crete-Athens link’s total construction cost as well as specific completion and electrification dates.

Until now, IPTO has provided a construction cost figure of 996.4 million euros, not including support and extraordinary costs. A Grant Thorton study has budgeted the project at 1.1 billion euros. Also, a 2022 completion date has been provided but RAE wants the exact month declared.

Energy minister Giorgos Stathakis has set a February 28 deadline for Euroasia Interconnector to recognize IPTO’s Ariadne as the sole project promoter for the Crete-Athens segment.

Euroasia Interconnector is not expected to accept. If so, RAE, immediately following the February 28 deadline, will award the Crete-Athens project to Ariadne as a national project included in IPTO’s investment program.