crete interconnection

Saudi Greek Interconnection study based on Egypt route

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A feasibility study to be conducted by Saudi Greek Interconnection, an SPV established by Greek power grid operator IPTO and Saudi Arabia’s National Grid for a prospective electricity interconnection linking Greece and Saudi Arabia, is widely expected to be based on a longer route via Egyptian territory, bypassing Israel, as a result of frosty relations between Saudi Arabia and Israel that have not shown any signs of improvement for the foreseeable future.

Though a joint announcement released by IPTO and National Grid earlier this week makes no reference to the project’s route or transit countries to be included in the feasibility study, Israel’s exclusion from the plan has become a common secret.

Egypt’s inclusion as an alternative route to Israel makes the project more complex, but it remains feasible from a technical point of view, experts ascertain.

The project’s feasibility studies, expected to be completed in the first quarter of 2025, will be based on HVDC technology, considered ideal for long-distance grid interconnections.

HVDC technology, ensuring consistent power, voltage, and frequency, while enhancing grid stability efficiency, is being used for the Athens-Crete grid link.

It is still too early to make any estimates on the cost of the Saudi Greek Interconnection as the project’s capacity has yet to be specified.

This will depend on the volume of sales agreements Saudi Arabia can establish with end buyers in Europe for the country’s production of renewable energy. Saudi Arabia’s sunny weather conditions all year round promise great solar energy production potential at relatively low prices.

PPAs at levels of roughly 10.4 dollars per MWh, unheard of in the international solar energy market, were signed in Saudi Arabia just months ago, according to recent reports.

Saudi Arabia aims to establish itself as a major exporter of low-cost solar energy to Europe and achieve net zero emissions by 2060.

Macquarie exits Crete link tender over role restrictions

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Australian fund Macquarie has withdrawn from a tender offering a 20 percent stake in Ariadne Interconnection, a Greek power grid operator IPTO subsidiary established for the development of a 1.1 billion-euro grid interconnection to link the power grids of Crete and Athens, the fund has announced.

According to sources, the fund took its decision as a result of a revision to the subsidiary’s statutes that restricts the winning bidder to a minority role in Ariadne Interconnection without voting rights or board participation.

Macquarie was swift to object to this revision following its announcement. Its partner for this tender, Copelouzos group member Faethon, will now be joined by France’s Meridiam Europe.

The revision to statutes of Ariadne Interconnection was requested by RAAEY, the Regulatory Authority for Waste, Energy and Water, in late 2023.

Meridiam Europe, Macquarie’s replacement, is entering a tender offering a major infrastructure contract in Greece for the third time.

The field of candidates vying for a 20 percent stake in Ariadne Interconnection now consists of GEK TERNA; Meridiam Europe- Faethon; Terna, operator of the Italian transmission system; and China’s SGCC.

The candidates have been given a deadline extension until June 21 to submit their bids.

The Crete-Athens grid link is expected to be electrified ty late 2024 and commercially launched in the summer of 2025.

Once Ariadne Interconnection is operating, Crete, Greece’s largest island with a population of roughly 650,000, will be supplied its electricity from the mainland system rather than costly local power plants now operating on the island.

The interconnection promises to reduce a public service compensation surcharge included in electricity bills by some 600 million euros annually, 400 million euros of which concern Crete.

 

PPC’s energy-sufficiency plan for Crete forwarded to Brussels

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An energy-sufficiency plan to cover Crete’s energy needs until an electrical grid-link with Athens is completed for commercial launch, expected within 2025, is now close to being finalized and has been forwarded to the European Commission for approval, energypress sources have informed.

A remuneration formula chosen for the island’s energy-sufficiency plan involves state aid and, as a result, requires Brussels’ approval.

The energy ministry has awarded Crete’s energy-sufficiency project to power utility PPC after alternative solutions involving Heron and Motor Oil failed to make progress.

For its Cretan plan, PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease – for two years, until 2025, and then purchase – the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the Heron I power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The energy ministry is soon expected to bring to Parliament a legislative revision covering the energy-sufficiency plan for Crete.

 

Crete-Athens grid link section sabotaged, IPTO reports

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Equipment for the Crete-Athens grid interconnection, Greece’s biggest and most complex electrical transmission line, has been sabotaged by intruders at an underground cable section just north of Crete’s northern motorway, power grid operator IPTO, whose Ariadne Interconnection subsidiary is developing the project, has reported.

The objective of the intrusion was to disrupt the project’s development, not steal equipment, IPTO believes.

The project’s developer has already filed a complaint with local police and is cooperating with authorities to identify the perpetrators. The project’s point of intrusion and equipment will now be guarded, police have informed.

IPTO is also coordinating with Crete’s regional and municipal authorities to address the situation.

At present, the contractor is assessing the extent of damages caused by perpetrators and how they could impact the timeline of the project’s delivery, crucial for Crete’s energy sufficiency.

The project promises to end the island’s energy isolation and significantly reduce the cost of producing energy on Crete.

IPTO’s Ariadne Interconnection subsidiary plans to complete work on the Crete-Athens grid interconnection by the end of this year and commercially launch the project within 2025.

A smaller-scale electrical grid interconnection linking Crete with the Peloponnese was launched in the summer of 2021.

Ministry set to table bill for Crete’s energy sufficiency plan

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The energy ministry is set to submit to Parliament a legislative revision covering Crete’s energy sufficiency plan, both before and after the island’s electrical grid interconnection with Athens, which is scheduled for commercial launch in the summer of 2025, energypress sources have informed.

The revision will pave the way for power utility PPC, which has undertaken the task of ensuring Crete’s energy sufficiency, to proceed with its plan.

PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease, until 2025, and then purchase the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The support formula for Crete will need to be approved by the European Commission as it is regarded as state aid. The energy ministry will begin related procedures with Brussels as soon as its legislative revision is ratified in Greek Parliament.

PPC needs to take swift action to ensure Crete’s energy sufficiency for this coming summer, when the island’s energy deficit is projected to reach 190 MW.

 

Cretan grid set for revamp to enable 2 GW in RES projects

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The imminent completion of an electrical grid interconnection to link Crete with Athens, a prospect now just months away, will pave the way for a full transformation of Crete’s network through upgrades of existing cables and development of new lines which, once ready, will enable the island’s grid to host just over 2 GW in renewable energy projects.

Power grid operator IPTO’s deputy chief Giannis Margaris discussed project details on Cretan TV during a visit to the island to oversee work on the grid interconnection with Athens.

The choice of the Damasta area, located in the island’s mid-north, as the finishing point of the Athens-Crete cable, is strategically positioned to facilitate power distribution to the rest of the island, the IPTO deputy noted during the interview.

IPTO’s planning takes into account Crete’s grid interconnection with the Peloponnese and – its extension to – Athens; a plan to link the Greek electrical grid, from Crete, with those of Cyprus and Israel; development of new RES units on Crete; as well as the energy security factor, or the ability to reverse energy flow should any emergency arise due to technical issues.

IPTO’s ten-year development plan covering 2024 to 2033, which has been submitted to RAAEY, the Regulatory Authority for Waste, Energy and Water, for approval, includes projects designed to reinforce the Cretan grid.

These are budgeted at 12.9 million euros, until 2024, and 12.79 million euros, until 2025, with a completion target set for 2027.

Ariadne Interconnection launch expected in summer of 2025

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Ariadne Interconnection, a 1.1 billion-euro project to link the power grids of Crete and Athens, whose installation has reached the final mile, is expected to be completed by mid-2024, and should be electrified in 2024, enabling its commercial launch in the summer of 2025, Manos Manousakis, CEO at Greek power grid operator IPTO, developing the project,  has informed.

Once Ariadne Interconnection is operating, Crete, Greece’s largest island with a population of roughly 650,000, will be supplied its electricity from the mainland system rather than costly power plants now operating on the island.

The interconnection promises to reduce a public service compensation surcharge included in electricity bills by some 600 million euros annually, 400 million euros of which concern Crete.

Some of the island’s existing power plants are planned to be maintained to provide roughly 400 MW as back up. They include power utility PPC’s main power plant on Crete, at Linoperamata, west of Heraklion.

The Ariadne Interconnection project’s main building facilities on Crete, an AC-to-DC conversion hall, and the control building, are now close to being completed. Manousakis, IPTO’s CEO, will be visiting the facilities today. Corresponding facilities at the project’s Athenian end are also progressing.

The project’s completed smaller segment, running from Crete to the Peloponnese, has already benefited the island since its launch ahead of the summer of 2021, Crete’s first summer without power outages, Crete’s regional governor Stavros Arnaoutakis noted during a meeting with the IPTO chief yesterday.

The Great Sea Interconnector, a project to link the Cretan, Cypriot and Israeli grids,  estimated to be completed around 2029, promises to establish Crete as an energy hub, Arnaoutakis added.

Crete-Athens power grid link ‘to be launched mid-2025’

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Development of an electrical grid interconnection to link the Cretan and Athenian systems is expected to be completed a year from now, while the project’s commercial launch is slated for mid-2025, following testing, Greek power grid operator IPTO’s chief executive Manos Manousakis has told an OT (Oikonomikos Tahydromos) Forum.

Also, two sections of a grid interconnection being developed at the Cyclades islands, one linking Naxos and Santorini, the other Milos, Folegandros and Serifos, are expected to progress at the aforementioned rate, the IPTO chief executive informed the event.

Once the two Cyclades segments are completed, all the Cyclades islands will be interconnected with the Greek mainland.

An interconnection project to link the Dodecanese islands with the mainland is planned to follow. Work is expected to begin with a segment from the Dodecanese to the Peloponnese, though other options are also being considered, the IPTO head noted.

PPC gas turbine plants on Crete given permit extensions

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Power utility PPC has received production license extensions until the end of the year for two gas turbine power plants with a total capacity of 27.95 MW on Crete, at Linoperamata, west of Heraklion, and Chania.

The decision, by RAAEY, the Regulatory Authority for Waste, Energy and Water, was made following a request submitted by PPC on the grounds of ensuring uninterrupted energy supply to Crete until the completion of a second electrical interconnection linking the island with Athens.

In granting production license extensions for the two PPC power plants, RAAEY presumes this second Crete-Athens grid interconnection will have been completed by the second half of this year.

Crete’s installed net capacity of thermal plants currently stands at 600 MW, while demand on the island in the coming years is expected to create serious electricity supply security issues, RAAEY noted.

The need for production capacity availability on Crete depends on the completion of the two phases of the island’s interconnection with the mainland, representing a finalized solution for the long-term security of the island’s electricity supply, the authority noted.

This interconnection’s first phase, linking Crete with the Peloponnese, was completed in 2021.

 

Hybrid RES station support for non-interconnected islands

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The energy ministry is preparing to legislate a framework approved by the  offering operational support for hybrid RES stations on non-interconnected islands. The initiative is planned to provide support for the development of hybrid stations representing a total capacity of 264 MW by the end of 2026.

Hybrid stations on non-interconnected islands will be divided into three sub-categories, based on how they will secure tariffs, energypress sources informed. One category will exclusively carry projects based on Crete, a second category will group together small islands not planned to be linked to the mainland grid through power grid operator IPTO’s grid interconnection projects, while a third category will concern islands being interconnected.

Regardless of category, all hybrid stations eligible for the new operational support system will receive support for 20-year periods. The support system will offer funds totaling 1.4 billion euros.

On Crete, the support system is expected to provide support for the development of hybrid power stations representing a total of 120 MW, including 84 MW in hybrid RES projects already at advanced licensing stages.

These specific projects have been granted priority status, a move endorsed by the Directorate-General for Competition, to help cover Crete’s energy insufficiency issues until a grid link from the island to Athens is completed.

 

Tender for 20% stake in IPTO subsidiary Ariadne imminent

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RAE, the Regulatory Authority for Energy, has approved the terms of a tender to offer a 20 percent stake in power grid operator IPTO’s subsidiary firm Ariadne Interconnection, established specifically for the development of the Crete-Athens interconnection.

The authority’s approval, offered after IPTO met observations made by RAE, paves the way for the tender’s announcement, expected imminently. Roadshows pitching the tender and also gauging the level of interest of prospective buyers will precede the sale procedure’s announcement.

IPTO had originally planned to offer a 40 percent stake in Ariadne Interconnection before halving this offering.

State Grid Corporation of China (SGCC), IPTO’s strategic partner with a 24 percent stake, which had expressed early interest in the upcoming Ariadne Interconnection tender, is believed to remain very keen.

SGCC’s existing involvement in IPTO prompted a series of obstacles that required RAE to turn to the European Commission for its approval before giving the green light for the tender.

The Crete-Athens interconnection, budgeted at one billion euros, is planned to be launched in 2024.

 

 

IPTO 10-year investment plan approved with SGCC backing

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The board at power grid operator IPTO has approved the state-controlled company’s ten-year investment plan, covering 2023 to 2032, with full support from State Grid Corporation of China (SGCC), the operator’s strategic partner, holding a 24 percent stake, a sign that tension between the two sides over the past few days has now eased off.

The ten-year investment plan was unanimously backed by IPTO’s nine-member board, which includes three members representing SGCC, energypress sources informed.

Days earlier, SGCC had informed it would prefer an administration change at IPTO after being notified, by the operator, of the Greek State’s decision to renew the term of IPTO president and chief executive Manos Manousakis.

In addition, Chen Dong, IPTO’s deputy chief executive, forwarded a letter to RAE, the Regulatory Authority of Energy, warning that the Athens-Crete grid interconnection’s completion is in danger.

At a preceding board meeting, an agreement with Siemens for procurement of the Athens-Crete grid link’s substations was approved by the IPTO board with a majority vote that did not include the support of the three SGCC representatives.

The Athens-Crete grid link’s substations, a crucial part of the grid interconnection, will determine, to great degree, the ensuing technology to be selected for the project, seen as pivotal for prospective transboundary interconnections.

IPTO, now in control of Crete’s small-scale link, boosts to full capacity

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Power grid operator IPTO, which has assumed control of a small-scale power grid interconnection linking Crete with the Peloponnese following the transfer, to IPTO, of distribution network operator DEDDIE/HEDNO’s assets on Crete, effective August 1, has, since August 26, also increased the line to near full capacity, at 150 MW, sources informed.

In addition, IPTO yesterday successfully staged a trial run further boosting the line’s capacity to 180 MW, the absolute upper limit.

The Crete-Peloponnese grid link was launched on July 3 to transfer power loads from the mainland to Crete in order to prevent energy insufficiency issues on the island.

Between its first day and August 20, the link consistently supplied Crete at a capacity of between 70 and 80 MW. This transmission was boosted to 100 MW between August 20 and 25 ahead of the latest increases over the past few days.

Crete’s participation in target model markets will be based on a hybrid model proposed by the Hellenic Energy Exchange from October 1 until the island’s large-scale grid link with Athens is completed.

 

HEDNO’s Crete assets set for transfer to IPTO

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An energy ministry legislative revision facilitating the transfer to power grid operator IPTO of distribution network operator DEDDIE/HEDNO’s assets on Crete, a pending issue needed for the launch of market activity concerning the island’s small-scale interconnection with the Peloponnese, has been submitted to Parliament for ratification, ending months of debate on the matter.

As of August 1, Crete’s entire package of high-voltage electricity grid assets will be transferred from power utility PPC, DEDDIE/HEDNO’s parent company, to IPTO, the new owner of these assets, taking on their operational management.

Until now, DEDDIE/HEDNO has been responsible for the management of Crete’s small-scale interconnection with the Peloponnese.

The price IPTO will need to pay for the acquisition of these Cretan grid assets will be determined by their market value, to be calculated over two stages.

The first will reflect the regulatory value of the assets. The second, to be calculated at a latter date, will concern the evaluation of the assets transferred to IPTO by an independent, specialized appraiser to be accepted by both IPTO and PPC.

 

Strict schedule for Crete target model transition plan

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The European Commission has offered preliminary approval, still unofficial, of a Greek proposal concerning a transitional framework for Crete’s electricity grid link with target model markets.

This development will now enable RAE, the Regulatory Authority for Energy, to conduct public consultation for a temporary plan concerning the island’s participation in the target model’s wholesale markets.

RAE is expected to begin the public consultation procedure this week, sources said. It will feature a strict road map for the model’s implementation, from forthcoming steps all the way to legislation.

The plan’s framework will include two alternative methods for the island’s electricity supply transactions through a small-scale interconnection, with the Peloponnese.

The solution to be selected will greatly depend on the results of the public consultation process.

As previously reported by energypress, a transitional framework is necessary as Crete’s electricity needs will only be partially covered, at a level of about 30 percent, through the small-scale interconnection.

The framework will expire once the island’s full-scale grid interconnection, all the way to Athens, begins operating in 2023.

Operators disagree on Crete network responsibility shift

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Power grid operator IPTO and distribution network operator DEDDIE are locked in a dispute over the point in time at which management responsibility of Crete’s small-scale grid interconnection, to reach the Peloponnese, should be transferred from DEDDIE, currently responsible for Crete’s network as the island is classified as a non-interconnected island, to IPTO.

DEDDIE contends that IPTO must take on the responsibility of managing the island’s network with the launch of the small-scale interconnection, anticipated in March, and not in 2023, when Crete’s full-scale interconnection, all the way to Athens, is expected to begin operating.

Crete should be considered an interconnected island as soon as the small-scale grid interconnection to the Peloponnese is launched, even though this infrastructure’s capacity will be able to cover about 30 percent of the island’s energy needs, DEDDIE contends.

Normally, the grid status of islands is automatically revised from non-interconnected to interconnected when grid interconnections serving their energy needs are launched. However, Crete, Greece’s biggest and most populous island, represents a much bigger interconnection project that is being developed over two stages.

DEDDIE, backing its case, has cited an older opinion forwarded by RAE, the Regulatory Authority for Energy, to the energy ministry, through which the authority supported that Crete’s network must be considered a part of the national grid, ending its non-interconnected island status, once the small-scale interconnection begins operating.

Also citing technical reasons to support its view, DEDDIE has pointed out that IPTO will be responsible for the operation and maintenance of the small-scale grid link, infrastructure directly influencing the Cretan network’s performance. Therefore, the island’s high-voltage network and the Crete-Peloponnese interconnection must be managed by the one operator, DEDDIE contends.

IPTO does not reject the prospect of eventually becoming responsible for Crete’s network, but the power grid operator does oppose the idea of assuming responsibility for a fixed asset that does not belong to the company. Crete’s high-voltage network is owned by power utility PPC.

At present, PPC does not appear ready to sell. As a result, IPTO believes DEDDIE must be responsible for the network’s management until this asset is transferred to the power grid operator.

Cretan small-scale grid link tested, launch by year’s end

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Power grid operator IPTO has begun electrification procedures at Crete’s small-scale grid interconnection with the mainland, to the Peloponnese – ahead of a bigger link to reach Athens – and is now preparing to conduct trial tests ahead of the project’s official launch by the end of the year.

The small-scale interconnection, covering a total distance of 132 kilometers, from Hania in Crete to Lakonia’s Neapoli area, is an investment worth 356 million euros.

Its development, including subsea cable installations at depths of 1,000 meters, has remained on schedule despite the pandemic’s obstacles.

The project’s imminent launch will enable the transmission of electricity from the mainland to Crete, high-voltage loads of 150kV, for the first time.

Crete’s large-scale grid interconnection with Athens, scheduled for completion in 2023, will secure exclusive supply to the island from the mainland, ensuring quality electricity supply for the island’s residents and visitors, IPTO has noted.

The overall project’s completion is expected to reduce public service compensation (YKO) surcharge costs imposed on electricity bills to fund island-based power-generating facilities by 300 to 400 million euros per year, while CO2 emissions on Crete will be reduced by 60 percent.

 

 

RAE awaits Brussels response to Ariadne minority sale plan

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RAE, the Regulatory Authority of Energy, is awaiting a response from the European Commission before approving a plan by power grid operator IPTO to sell up to a 40 percent stake in its subsidiary Ariadne Interconnection, established specifically for the development of the Crete-Athens interconnection.

RAE has consulted Brussels as the authority wants clarification on what the corporate structure of parent company IPTO and its subsidiary permits, based on EU law.

The Crete-Athens grid link was originally planned as a segment of EuroAsia, a wider interconnection plan of PCI status to link the Greek, Cypriot and Israeli electricity grids, with EuroAsia, a consortium of Cypriot interests, at the helm. Eventually, IPTO withdrew the Crete-Athens section for its development as a national project.

Ariadne Interconnection’s role will be strictly limited to the construction of the Crete-Athens interconnection, a concession agreement between IPTO and its subsidiary Ariadne Interconnection has specified. Once completed, IPTO will assume the project’s management.

Last October, IPTO forwarded a detailed plan to RAE concerning the sale of a minority stake in Ariadne Interconnection.

China’s SGCC, a strategic partner of IPTO holding a 24 percent stake, informed, some time ago, that it would be interested in acquiring a 20 percent stake of Ariadne Interconnection. European operators such as Italy’s Terna and Belgium’s Elia, as well as major investment groups, have also expressed interest.

The acquisition by investors of a minority stake in Ariadne Interconnection is linked to the development of major-scale RES projects on Crete.

EuroAsia project moving again, Egypt present with EuroAfrica

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Development of the wider region’s two major electricity grid interconnections, the EuroAsia Interconnector, to link Greece, from Crete, with Cyprus and Israel, and EuroAfrica Interconnector, a complementary project to link Cyprus with the African continent via Egypt, was discussed at a meeting in Nicosia yesterday between Greece’s energy minister Costis Hatzidakis and his Cypriot counterpart Natasa Pilides.

Progress at EuroAsia Interconnector, whose launch is scheduled for late in 2023, was held back by a Greek-Cypriot dispute prompted by Greek power grid operator IPTO’s withdrawal of the wider project’s Crete-Athens segment from EuroAsia Interconnector, a consortium of Cypriot interests.

The Crete-Athens segment is now being developed as a national project by IPTO and subsidiary Ariadne Interconnection.

EuroAsia Interconnector and EuroAfrica Interconnector promise to develop Cyprus into an electricity hub. A 310-km cable from Israel and a 498-km line from Egypt will converge at coastal Kofinou, in Cyprus’ south. From this hub, an 898-km cable is planned to link Cyprus with Crete before reaching Athens.

At yesterday’s meeting, the Greek and Cypriot energy ministers primarily focused on EuroAsia Interconnector, the Crete-Cyprus-Israel project, at a more mature stage.

Budgeted at 2.5 billion euros, this project, regarded as an EU Project of Common Interest, will promote regional energy security and further RES penetration in all three participating countries, Hatzidakis noted. The EU, it is estimated, will need to contribute at least half the project’s value.

Cyprus is the only EU member state without electricity grid interconnections.

Germany’s Siemens was awarded a procurement contract last May for EuroAsia Interconnector’s HVDC converter stations, budgeted at 623 million euros.

EuroAsia Interconnector was initially planned to offer 2 GW but this capacity has been halved, for the time being, as the other 1 GW will be used for the Crete-Athens grid interconnection.

EuroAsia Interconnector’s Israel-Cyprus segment is budgeted at 900 million euros while the cost of the bigger Cyprus-Crete section is estimated between 1.6 and 1.8 billion euros.

 

IPTO’s Ariadne Interconnection minority share offer resurfaces

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Power grid operator IPTO has reopened the prospect of making available to investors a minority stake in its subsidiary Ariadne Interconnection, established for the development of the Crete-Athens interconnection.

The possible sale essentially remained stagnant during a recent period of administrative changes at RAE, the Regulatory Authority for Energy.

Ariadne Interconnection has been commissioned the project’s construction IPTO but will cease to be involved in any way once the project is delivered to the operator for operation.

IPTO’s administration reminded RAE, in a letter forwarded just days ago, about a concession agreement it has signed with Ariadne Interconnection, offering a detailed description of the relations between the two companies for the Crete-Athens grid interconnection project.

The project was originally planned to be a segment of a wider interconnection plan to link the Greek, Cypriot and Israeli electricity grids, with EuroAsia, a consortium of Cypriot interests, at the helm, before IPTO withdrew the Crete-Athens section for its development as a national project.

IPTO has noted a minority partner in Ariadne Interconnection could be offered a stake of up to 40 percent.

China’s SGCC, a strategic partner of IPTO holding a 24 percent stake, informed, some time ago, that it wants to acquire a 20 percent stake of Ariadne Interconnection. European operators such as Belgium’s Elia and France’s RTE, as well as major investment groups have also indicated they would be interested.

 

Crete-Peloponnese subsea cable installation to start soon

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Power grid operator IPTO plans to begin installing a 135-km subsea cable for the Peloponnese-Crete grid interconnection, part of a larger project to ultimately extend this line to Athens, within the next few weeks. The installation’s exact starting date will depend on the weather conditions.

Also, a subsea cable interconnecting the islands Naxos and Syros, the final step in the third phase of the Cyclades grid interconnection, is expected to be electrified next month, according to the operator.

The Peloponnese-Crete project, in particular, is pivotal in the effort to reduce public service compensation (YKO) surcharges for consumers. The interconnections will also help utilize the renewable energy potential of islands.

The Peloponnese-Crete subsea cable installation, made challenging by deep waters reaching 1,000 meters, will require about two months to complete, IPTO sources noted. It will be the world’s longest subsea cable grid interconnection.

Installation work for a second subsea cable (107 km, 150 kV) between Syros and seaside Lavrio, on the southeastern tip of the wider Athens area, was completed last month in preparation for the electrification of the Naxos-Syros line, expected early October. High-voltage testing, over a 24-hour period, will precede the line’s electrification.

IPTO, Ariadne agreement details partnership for Crete link

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Power grid operator IPTO has signed a concession agreement with its fully owned subsidiary Ariadne Interconnection detailing their relationship for the Athens-Crete grid interconnection project, energypress sources have informed.

The agreement was prepared with assistance from legal and consulting firms to overcome concerns raised by RAE, the Regulatory Authority for Energy, following a decision by Greek authorities to develop this interconnection as a national project and not as part of the wider EuroAsia project planned to link the Greek, Cypriot and Israeli power grids.

RAE will now assess the concession agreement’s details and make observations, if needed, before procedures commence to bring investors into Ariadne Interconnection for a minority share.

The details of this entry procedure still remain unclear but the energy minister is expected to clarify through related legislation.

One of the ambiguities concerns whether large-scale RES projects on islands will be able to reserve IPTO interconnection capacities.

The Copelouzos group and Terna, for instance, maintain investment plans for Crete. If given the green light by the energy ministry, they will reserve capacities for the Athens-Crete interconnection, provide funds accordingly and be given corresponding stakes in Ariadne Interconnection.

Investors are expected to acquire up to 40 percent of Ariadne Interconnection, according to the IPTO board.

Chinese company SGCC, IPTO’s strategic partner with a 24 percent, has already expressed an interest to acquire a 20 percent stake in Ariadne Interconnection. Other interested parties include European operators, among them Belgium’s Elia and France’s RTE, as well as prominent financial groups possessing major investment portfolios.

Cyprus wants unchanged cost agreement for link with Crete

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Though a new application submitted by EuroAsia Interconnector, a consortium of Cypriot interests, to the EU’s Connecting Europe Facility for funding support concerning an electricity grid interconnection project to link the Greek and Cypriot systems has yet to be examined or reciprocated by the European Commission, Greece and Cyprus have already begun talks on how to divide the remainder of the project’s costs not covered by the CEF.

The Cypriot side, which took the initiative for these talks, appears determined to ensure that Greece will stick to its share of the cost under the terms agreed to when the project also included the Athens-Crete link as part of a wider plan to interconnect the Greek, Cypriot and Israeli systems.

EuroAsia Interconnector head the wider Greek-Cypriot-Israeli plan. Greek power grid operator IPTO withdrew the Athens-Crete segment and is now working on it as a national project. IPTO is aiming for swifter progress on this section, urgently needed to resolve Crete’s pressing energy sufficiency issues.

Cyprus’ Regulatory Authority for Energy, RAEK, has forwarded to its Greek counterpart RAE a text presenting its cost-related views. RAEK wants to ensure that a Cross Border Cost Allocation agreement signed by the two sides late in 2017 for the Greek-Cypriot link, running from Crete to Cyprus, remains valid, despite Greece’s withdrawal of the Athens-Crete section.

According to the CBCA agreement, Cyprus will take on 63 percent of the cost of the Crete-Cyprus link and Greece will be responsible for the other 37 percent, under the condition that 50 percent of the total cost will be covered by EU funds, through the CEF.

The Crete-Cyprus interconnection is budgeted at 1.5 billion euros, meaning Greece’s share will be approximately 280 million euros.

This amount will be incorporated into IPTO’s accounts and need to be recovered through network surcharges included in consumer electricity bills, seen as a delicate matter by the Greek government.

Greek authorities have yet to respond to RAEK’s initiative as they await news from the European Commission on the CEF request.

PPC, Terna, Copelouzos resume talks for Crete RES partnership

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Power utility PPC has resumed talks with Terna Energy and the Copelouzos group for a consortium to develop RES projects on Crete, but work is still needed if institutional complications are to be resolved.

The plan’s viability will depend on whether the consortium – if formed – can secure a contract with power grid operator IPTO to ensure a capacity reservation in the prospective Crete-Athens grid interconnection.

Approximately three years ago, Terna Energy and the Copelouzos group decided to merge two respective wind-energy projects covering Crete’s four prefectures, which took their combined capacity total to 950 MW, in order to facilitate an EU funding effort.

PPC also entered the picture just months ago, prior to the pandemic’s outbreak, for talks on the establishment of a three-member consortium. PPC Renewables, a PPC subsidiary, possesses wind-energy capacity on Crete.

The prospective venture planned by the trio entails transmission and sale to the mainland of 1 GW generated by wind-energy facilities. Each partner would hold a 33.3 percent stake in this venture.

 

 

Committee to oversee Greece, Cyprus, Israel grid link compatibility

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Greek power grid operator IPTO, its Cypriot counterpart, DSMK, and project partners have been authorized by the energy ministries of the two countries to assemble a special committee tasked with ensuring technical compatibility between the prospective Athens-Crete grid interconnection and the planned Cypriot and Israeli links.

The Athens-Crete grid interconnection, work on which is set to begin, will be developed by IPTO subsidiary Ariadne Interconnector, following the Greek grid operator’s break away from Cyprus’ EuroAsia Interconnector, originally formed to oversee the entire interconnection project, from Greece to Israel, but now handling its Cyprus and Israel segments.

The Greek and Cypriot energy ministries have asked IPTO, DSKK, Ariadne Interconnector and EuroAsia Interconnector to assemble the special committee within the next fortnight.

Greece’s energy ministry is determined to contribute to all efforts resolving any technical issues for the wider Greek-Cypriot-Israeli interconnection but development of the Athens-Crete section, nationally significant as it promises to prevent energy shortages on Crete, remains the ministry’s main concern at this stage, sources informed.

The Greek government is providing strong political support to the Crete-Cyprus and Cyprus-Israel segments, the energy ministry’s secretary-general Alexandra Sdoukou has pointed out, noting Cyprus’ grid interconnection with the rest of the EU promises to help the country achieve RES objectives set for 2030.

IPTO in talks with investors, operators for Crete interconnection

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Investors – funds and major operators – are believed to be expressing strong interest for a minority stake in power grid operator IPTO’s subsidiary Ariadne Interconnection, the project developer of the Athens-Crete electricity grid interconnection.

Talks with parties interested in an Ariadne Interconnection stake have commenced, the power grid operator’s deputy chief Yiannis Margaris informed media during a press call for a presentation of the company’s annual financial results.

Prospective Ariadne shareholders must be financially robust, well acquainted with energy-sector matters, and focused on long-term investments, Margaris pointed out, setting terms and conditions.

The operator is focusing its search on big groups with portfolios carrying major investments, the deputy said.

IPTO’s administration is already engaged in talks with European operators such as Belgium’s Elia and French operator RTE, Margaris indicated.

IPTO expects to sign a bank loan agreement this month for an amount between 400 and 500 million euros to help finance the Athens-Crete interconnection. A sum stemming from Ariadne’s cash reserves worth 200 million euros and National Strategic Reference Framework (NSRF) funds of between 300 and 400 million euros are also expected to contribute.

The Athens-Crete link project is set to start and all the funds must be in place, IPTO officials said.

The possible involvement in Ariadne of investors will help achieve better borrowing terms, the officials added, while stressing the two procedures – search for a minority shareholder and capital – are moving ahead independently of each other.

Talks are also in progress with investors for island interconnections to facilitate RES projects, Margaris said.

Gov’t moves promise progress for Athens-Crete grid link

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The government has taken key initiatives to facilitate progress of the Crete-Athens electricity grid interconnection project, vital for the island’s energy sufficiency following the compulsory withdrawal of high-polluting power stations.

A decision was reached yesterday at a cabinet meeting headed by Prime Minister Kyriakos Mitsotakis to induct this project into a code making the expropriation of property compulsory.

Prior to this, early in April, government officials delivered the project’s environmental terms.

The latest move, offering expropriation rights, enables work to progress before compensation amounts have been determined and paid out to displaced property owners.

However, in return, the Greek State must apply for temporary or final determination of compensation within one month.

Officials at power grid operator IPTO, developing the project, have embraced the government decisions as they promise to prevent delays for this ambitious and challenging grid interconnection.

Large-scale projects such as the Crete-Athens grid link cover areas administrated by successions of local authorities. Subsequently, overall project progress greatly relies on the swift issuance of licenses by local authorities.

As the next step, the winning bidders of cable installation work are expected to sign project contracts in May. The signing of contracts for the development of terminal stations is anticipated in the first half of June.

IPTO, Ariadne roles for Crete link project clarified to avoid complications

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Power grid operator IPTO, guided by consultants and legal experts, has prepared a concession agreement clarifying the roles of the operator and its subsidiary firm Ariadne Interconnection in the development of the Athens-Crete electricity grid interconnection. This is needed to avoid future complications in Brussels.

The concession agreement makes clear Ariadne Interconnection’s involvement in the venture is limited to the development stage, noting the subsidiary firm will not maintain any operational or management interests once the project is delivered to IPTO for operation.

RAE, the Regulatory Authority for Energy, has warned that any managerial involvement in the project by a company such as Ariadne Interconnection, not a certified operator like its parent company, will lead to complications at the European Commission and could delay the project, to be developed as a national project, not a PCI project promising EU funds.

RAE’s concerns are made more acute by the prospect of Ariadne Interconnection’s prospective split from IPTO as part of a procedure to offer a minority stake to third parties. Ariadne Interconnection is currently a fully-owned IPTO subsidiary.

Clarification on the project roles of IPTO and Ariadne Interconnection will enable Ariadne Interconnection to seek minority shareholders.

IPTO has noted a 40 percent stake of Ariadne Interconnection will be offered to investors to help finance the project without the burden of bank loans.

State Grid Corporation of China (SGCC), IPTO’s strategic partner with a 24 percent stake, has expressed an interest to acquire a 20 percent stake in Ariadne Interconnection.

IPTO island links over next 10 years to offer 2.6 GW capacity

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Power grid operator IPTO’s interconnections planned for the next decade will prepare the ground for new island-based RES projects representing a total capacity of 2.6 GW.

The operator’s ten-year national electricity grid development plan for 2021 to 2030, forwarded to RAE, the Regulatory Authority for Energy, for approval, offers major investment opportunities in the renewable energy sector.

Wind and solar energy farms operating on islands will be able to transmit their output to the mainland via underwater cables.

The IPTO ten-year plan offers a RES project installation capacity of 2,442 MW for Crete, the Cyclades, the Dodecanese and the northeast Aegean islands. This capacity represents potential investments estimated at 2.6 billion euros.

The completion of all four phases of the Cyclades interconnections, scheduled for the second half of 2024, will offer 332 MW for this region. Andros and Tinos will have a RES installation capacity of 72 MW, the capacity for Syros, Paros, Mykonos and Naxos will total 160 MW, while Santorini, Folegandros, Milos and Serifos will be offered a 100-MW installation capacity.

The completion of Crete’s small-scale mainland interconnection to the Peloponnese, scheduled for the second half this year, will offer a RES installation capacity of 160 MW. A further 600 MW will be added once the island’s major-scale interconnection to Athens is completed in 2023, when Crete’s wind and solar energy capacity total of new and existing RES projects is expected to reach 1,080 MW.

The RES expansion capacity on the Dodecanese and northeast Aegean islands will reach 1,030 MW, according to the IPTO ten-year plan. Samos, Chios and Lesvos will be offered a 360-MW share of this total; Limnos, Kos, Rhodes and Karpathos will get 570 MW, while Skyros will be offered the remaining 100 MW.

The grid interconnections in the island regions will be developed over three phases to be respectively completed in 2027, 2028 and 2029, according to the IPTO plan.