IPTO seeks Green Aegean grid link’s entry into ENTSO-E plan

Greek power grid operator IPTO intends, within the next few days, to submit a Green Aegean grid interconnection plan, envisaged to run from Greece to Germany’s south, to the ten-year development plan of ENTSO-E, promoting closer cooperation across Europe’s TSOs to support the implementation of EU energy policy and achieve Europe’s energy and climate policy objectives.

The project’s inclusion in the development plan of ENTSO-E, representing operators from all of the EU’s 27 member states, would represent a significant first step towards PCI/PMI status for the project, securing EU funding, as planned by IPTO.

The Green Aegean grid interconnection project is seen as vital for channeling, further north in Europe, huge quantities of green energy that are expected to enter Greece in the coming years from the Middle East and Asia through projects such as the Saudi Greek Interconnection. The project would also allow Greece to export some of its excess domestically-produced energy.

Greek and Saudi delegations met yesterday to establish a 50-50 joint venture for the Saudi-Greek Interconnection, with IPTO and Saudi Arabia’s National Grid as shareholders.

The Greek-German Green Aegean grid interconnection; the Saudi-Greek interconnection; along with Euroasia Interconnector, planned to connect the Greek, Cypriot and Israeli grids; as well as the Greek-Egyptian GREGY grid link, all represent parts of a green-energy intercontinental axis running several thousands of kilometers and involving many individual interconnections and special purpose companies. All these initiatives share one common goal, to transport, via Greece, renewable energy from Asia and the Middle East to green energy-hungry markets of Europe’s north.

 

IPTO in advanced talks for EuroAsia Interconnector helm

Power grid operator IPTO appears set to assume the role of project promoter at EuroAsia Interconnector, the Cyprus-headquartered consortium established to develop a grid interconnection project linking the Greek, Cypriot and Israeli electricity networks.

Questions have recently abounded about the consortium’s financial and technical ability to develop such a complex project.

Negotiations between IPTO and EuroAsia Interconnector, headed by Cypriot CEO Nasos Ktorides, have reached an advanced stage, sources informed.

IPTO, which recently acquired a 25 percent stake in the EuroAsia Interconnector, has submitted an offer that would give the Greek operator majority control of the consortium. The offer, sources informed, has been accepted, but still requires the European Commission’s approval.

Though the consortium has achieved noteworthy progress by securing, among other things, 657 million euros in funding from the Connecting Europe Facility and establishing an agreement for the project’s cable with Norwegian company Nexans, the overall endeavor has now reached a critical pre-construction stage, leading to greater needs, especially financial, which the Cypriot company appears to have found challenging.

IPTO’s assumption of the project promoter’s role at EuroAsia Interconnector is seen, by all parties involved, as the best solution for the smooth implementation of the project, as the Greek operator possesses the necessary financial strength, technical capacity and expertise to develop an HVDC interconnector of such magnitude and technical complexity.

The Cypriot government is taking this interconnection project very seriously, while cooperation between IPTO and the Cypriot energy ministry is excellent at all levels, IPTO officials informed energypress, in response to questions.

EuroAsia Interconnector fears abound after payment failure

Questions continue to abound on the uncertain future of the beleaguered EuroAsia Interconnector project, aspiring to interconnect the electricity networks of Greece, Cyprus and Israel, after the project consortium leader’s denial of having missed a payment deadline last Friday.

Asked by the Cypriot newspaper Phileleftheros to comment on an energypress report stating that EuroAsia Interconnector, the Cyprus-headquartered consortium promoting the project, failed to meet a September 7 deadline for a 50 million-euro payment to Norwegian company Nexans as a first installment for cable supply, the consortium’s chief executive officer Nasos Ktorides denied the existence of any such deadline.

The CEO claimed EuroAsia Interconnector had no contractual obligation to make a first payment of 50 million euros to Nexans by last Friday for the construction and installation of a 1.4 billion-euro cable running from Crete to Cyprus.

Instead, Ktorides insisted that the EuroAsia Interconnector consortium respects all terms of its agreement with Nexans. The CEO acknowledged the existence of payment deadlines but refused to offer any dates.

As reported by energypress, the agreement between EuroAsia Interconnector and Nexans for a first installment by September 7 may not have been binding, but the consortium’s failure to make the payment does underline its financial issues.

The Cypriot government has kept a growing distance from the EuroAsia Interconnector project ever since the European Commission warned a 657 million-euro CEF sum secured for it would be reexamined if the project’s schedule is not maintained.

EuroAsia Interconnector fails to make first Nexans payment

The beleaguered EuroAsia Interconnector project, aspiring to interconnect the electricity networks of Greece, Cyprus and Israel, has run into further trouble following its Cyprus-headquartered consortium’s failure to meet yesterday’s deadline for a 50 million-euro payment to Norwegian company Nexans as a first installment for cable supply.

This deadline was widely viewed as a crash test for the credibility of the consortium, spearheaded by Cypriot entrepreneur Nasos Ktorides, its chief executive officer.

The payment failure has given rise to various scenarios concerning the project’s future. Without a doubt, the Cypriot government wants this geostrategically important project to go ahead, while the European Commission, which has offered funding support worth 657 million euros, through the Connecting Europe Facility, can be expected to become more actively involved in an attempt to push the project forward.

Given its commitment to the EuroAsia Interconnector project, Greek power grid operator IPTO could also intensify its efforts to keep the grid interconnection project afloat.

IPTO has pledged to contribute 33 percent of the investment if legal due diligence is successfully completed, while an Israeli fund that has expressed interest could provide an equivalent amount. Under such a scenario, IPTO and the Israeli fund would hold 66.66 percent of the EuroAsia Interconnector project’s equity capital.

It remains unclear as to why the EuroAsia Interconnector consortium failed to meet yesterday’s payment deadline, despite having recently received the required 50 million-euro amount from the CEF. According to one resulting scenario, a new consortium could now be sought for the project’s development.

A growing number of Cypriot government officials have been distancing themselves from the Euroasia Interconnector project ever since Brussels’ recent warning that the 657 million-euro CEF sum secured for it would be reexamined if the project’s schedule is not maintained.

Cyprus’ energy minister Giorgos Papanastasiou recently noted the project is still 1.1 billion short of its 1.9 billion-euro budget, which was revised upwards from a previous total of 1.57 billion euros.

Euroasia Interconnector, short of €1.1bn, faces payment test

The moment of truth is approaching for the promising yet troubled Euroasia Interconnector project, aspiring to interconnect the electricity networks of Greece, Cyprus and Israel but facing challenges in terms of its schedule and funding.

European Commission warnings over the project’s insufficient financing plan have raised concerns among authorities in Cyprus, where the Euroasia Interconnector consortium is headquartered. The consortium faces a September 7 deadline for a 50 million-euro payment to Norwegian company Nexans, for the construction of a cable. Tomorrow’s deadline represents a crash test for the consortium’s credibility.

A growing number of Cypriot government officials have been distancing themselves from the Euroasia Interconnector project since Brussels’ recent warning that EU funds worth 657 million euros secured by the project would be reexamined if the project’s schedule is not maintained.

The project’s challenges have been highlighted by the very statements of Cypriot government ministers and officials. Asked, just days ago, about Euroasia Interconnector, government spokesman Konstantinos Letymbiotis replied that the Cypriot government would first wait for a rating agency’s assessment of the project’s feasibility and geostrategic value before taking any decisions on its involvement.

Also, Cyprus’ energy minister Giorgos Papanastasiou has downplayed the significance of Greek power grid operator IPTO’s recent preliminary agreement with an Israeli fund for the latter’s entry into the equity capital of Euroasia Interconnector with a share of up to 33 percent.

This agreement would contribute roughly 100 million euros to the project, just a fraction of the Euroasia Interconnector’s budget, which has risen sharply to 1.9 billion euros from a previous estimate of 1.57 billion euros, Papanastasiou noted, when asked to comment on IPTO’s agreement with the Israeli fund.

This agreement’s anticipated 100 million euros, along with the Connecting Europe Facility’s 657 million euros, and a further 100 million euros from the Cypriot recovery fund, all totaling 857 million euros, still leaves the project’s required funding short of 1.1 billion euros, Papanastasiou pointed out.

External investor interest for Greece-Cyprus-Israel grid link

A preliminary agreement between Greek power grid operator IPTO and an Israeli fund that would facilitate the fund’s entry into the equity capital of Euroasia Interconnector, the developer of the Greece-Cyprus-Israel grid interconnection, with a share of up to 33 percent, has ignited considerable investment enthusiasm in the project among external investors.

News of this strong investment interest was revealed by Cypriot Minister of Energy, Trade and Industry Giorgos Papanastasiou during a Parliamentary Energy Committee meeting held yesterday for a discussion on the project’s progress.

The parliamentary session took place just hours after IPTO’s preliminary agreement with the Israeli fund had been disclosed.

IPTO has already reached an agreement of its own with Euroasia Interconnector for a stake of at least 25 percent in the consortium, with an option to increase this stake to 33 percent.

Papanastasiou, the Cypriot minister, noted IPTO’s entry into the Euroasia Interconnector consortium serves as a vehicle for the Greek State’s involvement in the project. For the time being, the Cypriot State officially remains absent from the project.

“For us, it is inconceivable that the Republic of Cyprus should not be involved in such a project,” Papanastasiou noted.

Nevertheless, he emphasized that the Cypriot government is diligently assessing the matter. Given the project’s significant expenses, any decisions will be made after a comprehensive evaluation of the project’s technical and financial aspects.

The minister rejected claims suggesting the project would result in significant electricity tariff increases for Cypriot consumers, noting preliminary calculations indicate a cost increase of approximately 0.7 cents per KWh, which is just a fraction of Cyprus’s current retail electricity prices, reaching 35 cents per KWh.

IPTO in deal with Israeli fund for Euroasia Interconnector

Power grid operator IPTO has reached a preliminary agreement with an Israeli fund facilitating its entry into the equity capital of Euroasia Interconnector, the developer of the Crete-Cyprus grid interconnection, with a share of up to 33 percent, according to confirmed information.

This development seems to have injected new life into the project, which has encountered notable challenges in recent times, namely strict warnings by the European Commission over schedule delays and, even more crucially, the developer’s inability to produce a sound financial plan, an issue that has prompted the Cypriot State to seriously reassess its participation in the project.

Highlighting the urgency of the matter, it should be noted that, on the basis of a contract signed recently by Euroasia Interconnector with Norwegian company Nexans for the construction of a cable for the Crete-Cyprus interconnection, Euroasia Interconnector faces a September 7 deadline for a 50 million-euro payment.

If IPTO’s agreement with the Israeli fund goes ahead, it confirms, on the one hand, Israel’s increased interest in the project, which will potentially interconnect the Greek, Cypriot and Israeli power grids, and, on the other hand, it should provide a solution to the existing financial gap that has generated doubts over the project.

IPTO and the Israeli fund’s equity participation in Euroasia Interconnector promises sufficient equity capital for the project, which in turn could facilitate project borrowing from the European Investment Bank, while also formulating a comprehensive financing plan for the project.

 

EuroAsia Interconnector funds threatened by project delays

EU authorities appear to have issued a strict warning to Cyprus over major delays in binding scheduling terms for EuroAsia Interconnector, a project of strategic importance planned to interconnect the Greek, Cypriot and Israeli power grids.

According to sources, the EU has warned the Cypriot government that if appropriate decisions are not taken immediately to ensure that the project can be put back on track, then a decision offering 657 million euros worth of Connecting Europe Facility (CEF) funding for the PCI-listed project would need to be reviewed.

In response, Cypriot president Nikos Christodoulides held an emergency meeting last Friday with Nasos Ktorides, CEO of the EuroAsia Interconnector consortium, and the country’s energy minister George Papanastasiou.

Though no official announcements have been made, Cypriot press has reported that the government intends to engage directly and vigorously at the highest political level to secure the planned funding for the project.

Delays include Greek power grid operator IPTO’s entry into the EuroAsia Interconnector consortium with a 25 percent stake. A strategic agreement was announced at the end of June but the matter has not progressed further as due diligence remains unfinished.

The EU has insisted on IPTO’s participation as, on the one hand, the project will be connected to the Greek operator’s networks in Crete, and on the other, IPTO, it is believed, would ensure the project’s technical integrity and operational viability.

EuroAsia Interconnector has also been held back by the consortium’s delay in signing a contract with Norwegian company Nexans, to manufacture the project’s subsea cable.

This delay threatens to deprive EuroAsia Interconnector of its intended production slot at Nexans because the manufacturer faces high demand for cables from countries such as Germany and the Baltic countries as a result of Russia’s war in Ukraine.

 

 

 

PCI/PMI list preliminary ratings out, GREGY a borderline case

The European Commission’s Directorate-General for Energy, preparing a shortlist of electricity projects for a sixth PMI/PCI list, including Projects of Mutual Interest and Projects of Common Interest, has just staged a teleconference with representatives of projects vying for a place on the list.

As for the PMI list, the Brussels officials, in addition to preliminary ratings for candidate projects, also presented their criteria and formula applied for appraisals.

The presentation of these details was necessary as, under the revised TEN-E Regulation, new PMI selection criteria are being used for the first time for projects also involving non-EU members.

According to energypress sources, the GAP Interconnector, an Egyptian-Cretan power grid interconnection project plan been promoted by the Eunice group, was not appraised, as had been expected, because it has not secured Letters of Support from the Greek state.

GREGY, another Greek-Egyptian grid interconnection plan, which is being promoted by the Copelouzos group, was given a preliminary rating of 9.3, just below the 10-level score required for inclusion on the PMI list.

GREGY project officials have until June 30, when the PMI shortlist will be announced, to enhance their project’s dossier with additional details that could boost its rating and secure a place on the PMI shortlist. Copelouzos group officials are confident this can be achieved.

The Euroasia Interconnector, planned to link the Israeli, Cypriot and Greek power grids, has amassed the points needed to secure its inclusion on the PMI shortlist.

A total of five European projects, two of these with Greek interests, have achieved preliminary scores offering places on the PCI shortlist.

One of the two Greek projects, Terna Energy’s pumped-storage station project plan for Amfilohia, northwestern Greece, was included on the EU’s PCI list in 2013, while all indications suggest it will retain its place on the list’s sixth edition.

The Eunice group’s Ptolemaida BESS, a 250-MW energy storage facility planned for Ptolemaida, northern Greece, has scored highly for a place on the revised PCI shortlist.

DG Energy initial assessment of PCI/PMI list projects April 21

At least seven prospective interconnections concerning Greece and other major domestic projects for which PCI/PMI list inclusion is being sought by local officials are expected to be assessed by European Commission authorities following this weekend’s Greek Easter break.

These projects are among hundreds of energy infrastructure projects around Europe which related officials hope will be given the green light by Brussels’ Directorate-General for Energy for inclusion onto the PCI/PMI list, promising EU support funds. The list’s coverage was expanded this year to include projects also concerning non-EU countries.

Brussels officials are expected to make an initial assessment of PCI/PMI list candidate projects on April 21 before announcing a short list of candidates in June. A finalized list is scheduled to be announced in November.

As part of the initial assessment procedure, DG Energy officials will hold talks with contractors behind projects as well as government and regulatory officials for related information.

The Greek-Egyptian GREGY Interconnector, a project being promoted by Elica, a subsidiary of the Copelouzos group; an update of the Greek-Italian power grid interconnection, a project involving Greek power grid operator IPTO and Italy’s Terna; the EuroAsia Interconnector, planned to link the Cretan, Cypriot and Israeli electricity grids; an Egyptian-Cretan grid interconnection planned by the Eunice group; development of a crucial power transmission line from Filippoi to Nea Sanda in northern Greece; a pumped-storage station in Amfilohia, northwestern Greece, planned by TERNA Energy; as well as a power grid interconnection upgrade by IPTO between Meliti in northern Greece to Bitola in North Macedonia, are the seven Greek and Greek-related projects for which PCI/PMI list inclusion is being sought.

 

IPTO set to join EuroAsia Interconnector by year’s end

Power grid operator IPTO is expected to join EuroAsia Interconnector, a Cypriot company established to link the Greek, Cypriot and Israeli power grids, by the end of the year.

IPTO’s anticipated board approval of the company’s agreement with EuroAsia Interconnector is the next step in IPTO’s process of acquiring a stake in the company, expected to be at least 25 percent.

EuroAsia Interconnector accepted an official proposal submitted by IPTO in late July. Speaking at the recent Thessaloniki International Fair, IPTO president Manos Manousakis noted EuroAsia Interconnector’s acceptance of the Greek power grid operator’s terms ensures IPTO’s participation in the Greek, Cypriot and Israeli power grid interconnection, a project of strategic importance.

Once the IPTO board approves the agreement, the operator will need to conduct due diligence, expected to take place within the next month or two.

The deal for IPTO’s acquisition of a stake in EuroAsia Interconnector is expected to include terms for a further stake increase in the Cypriot company.

The agreement’s technical and financial details promise to propel the development of the Crete-Cyprus segment of the overall project, the most mature of all segments.

The Crete-Cyprus segment will end the electricity isolation of Cyprus, the EU’s only remaining member state still disconnected from fellow member states, and also boost Greece’s role as an electricity transmission hub in southeast Europe.

A total of 898 kilometers of subsea cables are planned to be installed at a depth of up to 3,000 meters for the Crete-Cyprus grid link.

 

Israeli power grid operator officials in Athens for grid link

The energy ministry and power grid operator IPTO seem determined to press ahead with two major grid interconnection projects, one to link Greece with Cyprus and Israel, the other Greece and Egypt, REPowerEU, Europe’s strategic plan aiming to end the continent’s reliance on Russian fossil fuels through energy-source diversification, being the driving force behind this action.

IPTO, according to sources, is just about ready to forward a proposal for participation in EuroAsia Interconnector, a consortium established for the development of the Israel-Cyprus-Greece grid interconnection.

Highlighting the activity concerning the project, officials of Israel’s power grid operator are in Athens for talks today with IPTO’s chief executive Manos Manousakis and other company officials.

The Israeli officials will also take part in an ensuing meeting with Greek energy minister Kostas Skrekas.

Israeli interest in the grid interconnection has grown following the European Commission’s decision to make available 657 million euros for the project’s Cyprus-Greece section.

The Israel-Cyprus-Greece grid interconnection will facilitate RES development in Israel, promising to contribute to the EU-27 aim for an end of Europe’s reliance on Russian fossil fuels.

The grid link, to measure 1,208 kilometers and offer a 1-GW capacity, will also end Cyprus’ energy isolation and offer energy security to Israel.

It is budgeted at 2.5 billion euros with completion slated for the end of 2025, if procedures go according to plan.

Manousakis, the IPTO chief executive, plans to visit Cairo during June for talks with officials at Egypt’s power grid operator, EETC. Progress on the prospective Greek-Egyptian grid link has been smooth. The two sides are now preparing for a feasibility study.

Skrekas, the energy minister, is expected to be in Egypt sooner, to take part in the East Med Gas Forum, scheduled for June 14 and 15. He is expected to meet with Egyptian energy ministry officials on the sidelines of this event, for talks on the Greek-Egyptian grid link.

This project, based on a proposal from the Copelouzos group, entails a subsea cable from Egypt to the Greek capital.

It is budgeted at 3.5 billion euros and will offer a 3-GW capacity for renewable energy, which will also be exported to other EU member states through grid interconnections linking Greece with neighboring countries.

Greece, Cyprus, Israel look to push ahead with key projects

The prospective East Med gas pipeline and a subsea electricity grid interconnection, projects that would link Israel with Cyprus and Greece and which are being heavily promoted as a result of the EU’s new energy policy, aiming to end the continent’s reliance on Russian gas as soon as possible, are expected to dominate the agenda of today’s trilateral meeting in Jerusalem between the energy ministers of Greece, Cyprus and Israel.

Energy company representatives will, for the first time, also be participating in a trilateral meeting of energy ministers involving the three countries, highlighting the determination of all three countries, and the EU, for swift progress on projects and agreements that would contribute to greater energy diversification for Europe.

Greek energy minister Kostas Skrekas will be accompanied by Kostas Xifaras, chief executive of gas company DEPA Commercial; Mathios Rigas, CEO of upstream company Energean; and Manos Manousakis, CEO of Greek power grid operator IPTO.

Representatives of corresponding Cypriot and Israeli companies will also be taking part in today’s trilateral meeting.

Prospects for the development of the EuroAsia electricity grid link promising to connect the three countries have grown considerably as Israel appears to have swept aside previous reservations. Israel has wanted the completion of the Crete-Cyprus link as a prerequisite ahead of further development.

 

 

EuroAsia taking on extra compatibility costs for Cyprus-Crete grid link

RAE, the Regulatory Authority for Energy, has updated details of a Cross Border Cost Allocation (CBCA) agreement concerning the Cyprus-Crete electricity grid interconnection plan, committing the project’s promoter, EuroAsia Interconnector, a consortium of Cypriot interests, to assume any additional compatibility costs that may arise during the development of this segment.

The development eliminates the prospect of action by EuroAsia against Greece following a decision by the Greek government, over a year ago, to detach the Crete-Athens segment from EuroAsia’s wider project, planned to link Greece, from Crete, with Cyprus and Israel.

As a result of the withdrawal, the Crete-Athens segment is now being independently developed by IPTO, Greece’s power grid operator.

Project disagreements between Greek and Cypriot officials have persisted for years but escalated into legal threats and action when, during his recent tenure as energy minister, Costis Hatzidakis decided to withdraw the Crete-Athens segment for independent development.

Following more recent negotiations, EuroAsia appears to have fully accepted the removal of the Athens-Crete segment from the wider project it is spearheading.

Israel, for some time now, has made clear its interest to link the Cyprus-Israel grid interconnection with the Crete-Athens section.

RAE awaits Brussels response to Ariadne minority sale plan

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

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

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.

 

Cyprus wants unchanged cost agreement for link with Crete

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.

Committee to oversee Greece, Cyprus, Israel grid link compatibility

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, ministry, RAE seeking common ground for Ariadne tender

Officials at power grid operator IPTO, the energy ministry and RAE, the Regulatory Authority for Energy, are seeking common ground that would pave the way

a tender to offer a minority 39 percent share in IPTO subsidiary Ariadne Interconnector, an SPV established for the development of the Athens-Crete electricity grid interconnection.

IPTO is looking to attract an investor, or investors, for a minority stake in Ariadne as financial support for the costly project.

IPTO wants to maintain a majority stake in its subsidiary as the operator is determined to control the construction of a project it will eventually operate.

State Grid Corp of China (SGCC), holding a 24 percent stake of IPTO, is expected to participate in the tender. The Chinese company has already expressed interest for a 20 percent stake in Ariadne and has signed a related memorandum with IPTO.

If SGCC’s interest is limited to a 20 percent stake, then a second equity package carrying a further 19 percent is likely to be offered to other investors.

EuroAsia Interconnector, a consortium of Cypriot interests heading a wider PCI-classified project planned to link the Greek, Cypriot and Israeli grids, was expected to acquire a 39 percent in Ariadne. However, a dispute with IPTO over control of the wider project’s Crete-Athens section has distanced EuroAsia.

Energy minister Costis Hatzidakis and IPTO chief executive Manos Manousakis are both confident concerns raised by RAE over the tender’s procedure will be overcome and enable a launch of the competition within the first months of this year.

RAE is worried about complications that could arise and trouble the tender as a result of SGCC’s stake in IPTO. If not handled appropriately, the tender could spark protests from rival bidders claiming unfair competition, RAE fears. Also, the authority is well aware of Brussels’ sensitivity to the prospect of a wider Chinese presence in EU infrastructure.

 

Ariadne Interconnector minority stake tender early in 2020

A tender to offer one or two prospective partners minority stakes in Ariade Interconnector, the SPV established by power grid operator IPTO for the development of the Athens-Crete electricity grid interconnection, is expected to be staged within the first few months of 2020.

Both the energy minister Costis Hatzidakis and IPTO chief executive Manos Manousakis anticipate common ground will soon be found with RAE, the Regulatory Authority for Energy, to enable the tender to go ahead.

State Grid Corp of China (SGCC) appears willing to participate in the tender. The Chinese company, already holding a 24 percent stake of IPTO, has expressed interest to acquire 20 percent of Ariadne. A related memorandum guaranteeing SGCC’s involvement, has been signed between SGCC and IPTO.

If SGCC’s interest in Ariadne is limited to 20 percent, then a second package, most probably offering an additional 19 percent, will be offered to investors for a total of 39 percent.

This is the Ariadne Interconnector stake that had been planned for EuroAsia, a consortium of Cypriot interests that has opposed IPTO’s decision to appoint Ariadne, a subsidiary firm, as project promoter of the Athens-Crete electricity grid interconnection.

Euroasia, heading a consortium formed for a wider PCI-status interconnection project to link the Greek, Cypriot and Israeli grids, has sought control of the Crete-Athens segment’s development.

If SGCC expresses an interest for an Ariadne stake bigger than 20 percent, then just one package offering 39 percent will be offered through a tender.

IPTO is determined to keep a majority stake in its subsidiary Ariadne as the operator wants to maintain control over the construction stage of the Athens-Crete link, to be managed by the operator once launched.

Investors, especially from abroad, are expected to show strong interest in Ariadne.

The IPTO administration is also looking to offer minority stakes to investors in other projects it is developing. This would secure further financing support and swifter completion.

PM decision on Crete link, wider PCI plan support needed today

Negotiations ran throughout the day until late last night as all sides involved sought to determine if an agreement is possible on the prospective Crete-Athens power grid interconnector and whether the wider Athens-Crete-Cyprus-Israel interconnection, an EU project of common interest (PCI), remains feasible under the current conditions.

Greek Prime Minister Kyriakos Mitsotakis must inform the European Commission  today on whether Athens supports the wider PCI project, a stance that would incorporate the Athens-Crete segment, or pursue this segment separately as a national project.

A European Commission PCI committee is meeting today to discuss the EU’s new PCI list for the next two years.

Greek power grid operator IPTO has been embroiled in a dispute with Cypriot consortium EuroAsia Interconnector over development control of the wider project’s Crete-Athens segment. EuroAsia Interconnector heads the wider project and has been joined by Elia, Belgium’s electricity transmission system operator, in a strategic alliance.

The Cypriot side entered yesterday’s negotiations with a slightly improved offer but the Greek side still considers it insufficient for constructive talks.

The Greek government has set red lines for the Athens-Crete segment, including no further delays for ongoing tenders offering converter station contracts, which effectively means technical term revisions will not be accepted. Greek officials insist compatibility for the wider project is ensured.

Gov’t making last-ditch effort for Cypriot deal on Crete grid link

The government, determined to move ahead with the country’s grid interconnection projects in support of economic and environmental concerns, is making a final effort to establish cooperation between Greek power grid operator IPTO and Cypriot consortium EuroAsia Interconnector, at odds for development control of a grid project to link Crete with Athens.

The EuroAsia Interconnector consortium heads a wider PCI-status project to link the Greek, Cypriot and Israeli grids.

“We need to have made decisions by October 4. Grid Interconnections are a priority for environmental and economic reasons,” energy minister Costis Hatzidakis stressed yesterday, speaking at a conference staged by the Hellenic Entrepreneurs Association (EENE).

The government is seeking to make the most of ongoing visits to Greece by Cypriot minister of energy, commerce industry and tourism Giorgos Lakkotrypis and former foreign minister Ioannis Kasoulides, now Euroasia Interconnector’s Chairman of the Strategic Council.

The Greek energy ministry has not ruled out an agreement with Euroasia Interconnector for the Crete-Athens grid link but has made clear swift development of the project is the top priority. A Greek-Cypriot-Israeli grid interconnection is still desired by the Greek government but the Cretan link is seen as even more crucial, Hatzidakis, the energy minister, is insisting, according to sources.

Euroasia Interconnector and the European Commission have requested the cancellation of a decision by RAE, the Regulatory Authority for Energy, awarding the Cretan project to Ariadne, a fully-owned IPTO subsidiary. This would delay progress.

“The only remaining prospect for cooperation would require Euroasia to provide the needed capital for a stake in Ariadne. But the Cypriot consortium appears unwilling or unable to do this,” an official deeply involved in the matter has informed.

The Cretan grid link project will be continued as a national project if current talks with the Cypriot side do not lead to any agreement, sources informed. If so, the Greek government is expected to deliver a pending reply to Brussels making clear that it does not support the entire Athens-Crete-Cyprus-Israel project.

Meanwhile, prospective bidders of a tender concerning the Crete-Athens grid interconnection project’s engineering, procurement and construction of two converter stations and a GIS substation have been given a further deadline extension. An initial August 30 deadline had been reset for September 30 before the latest extension.

Crete-Athens link tender set for further deadline extension

A tender concerning the Crete-Athens grid interconnection project’s engineering, procurement and construction of two converter stations and a GIS substation will be given a further deadline extension, possibly an entire month, as a result of requests made by major prospective bidders.

An initial August 30 deadline was reset for September 30 and may now be extended to October 30.

Project promoter Ariadne, a subsidiary of Greek power grid operator IPTO, has made clear to the tender’s participants the latest deadline extension will be the last as any further delays would place at risk the project’s completion on time. This would have repercussions as the project is vital for Crete’s energy sufficiency.

The latest extension is not linked to a legal challenge made by EuroAsia, a consortium of Cypriot interests heading a wider PCI-status project to link the Greek, Cypriot and Israeli grids, sources noted. Nor is it any way linked to a pending Greek government response to the European Commission on whether the Crete-Athens interconnection will be supported by Greece as part of the wider PCI project or as a national project, the sources added.

Some of the companies interested in the Crete-Athens link tender have confirmed requesting a new deadline extension.

This tender was preceded by an initial tender concerning the project’s cable segments. Appraisals of the technical aspects of offers will be completed by the end of this month, according to IPTO chief executive Manos Manousakis, while assessments of the financial offers will follow.

Supreme Court rejects Euroasia case for Crete link control

The Council of State, Greece’s Supreme Administrative Court, appears to have rejected a case filed by Euroasia Interconnector, a consortium of Cypriot interests, challenging the appointment of Greek power grid operator IPTO subsidiary Ariadne as project promoter of a grid interconnection to link Crete with Athens, energypress sources have informed.

Euroasia, heading a consortium formed for a wider PCI-status interconnection project to link the Greek, Cypriot and Israeli grids, is seeking control of the Crete-Athens segment’s development.

Legal experts believe Euroasia’s challenge will not succeed.

The Cypriot consortium’s Supreme Court move, which opposed the Ariadne subsidiary’s appointment by RAE, Greece’s Regulatory Authority for Energy, followed an unsuccessful legal attempt at the Authority for the Examination of Preliminary Appeals (AEPP).

The Supreme Court’s verdict is crucial as it will determine if ongoing tenders for the development of the Crete-Athens interconnection can continue or not.

Procedures concerning a tender for the project’s transmission stations are progressing and attracting the interest of major developers and suppliers. This tender’s deadline was extended by one month.

The energy ministry, in contact with the European Commission over the matter, has not written off the prospect of a settlement with Euroasia but insists the project’s swift development is the key criterion behind decisions.

Supplying the required capital for a minority stake in Ariadne appears to be the only available option for Euroasia at this stage. However, the Cypriot consortium does not appear willing to take such a route.

Time is running out. Greece has until October 31 to inform a European Commission committee handling the EU’s PCI list if the country will support the Crete-Athens interconnection as part of the wider PCI project or proceed with its development as a national project.

Supreme court to hear Euroasia Crete-Athens case Thursday

The Council of State, Greece’s Supreme Administrative Court, is scheduled to hear a case filed by Euroasia Interconnector – a consortium of Cypriot interests heading a PCI-status grid interconnection project to link the Greek, Cypriot and Israeli systems – against Greek power grid operator IPTO on September 5.

Euroasia, embroiled in a dispute with IPTO for control of the Greek segment’s development, planned to link Crete with Athens, recently escalated its legal effort following a rejection by AEPP, the Authority for the Examination of Preliminary Appeals.

Commenting on the upcoming hearing, legal sources said they do not expect a favorable verdict for the Euroasia consortium.

Though the deadline of a project tender held by Ariadne Interconnector, an IPTO subsidiary, was given a one-month extension to September 30, procedures are progressing normally, while all major players appear interested, sources told energypress.

IPTO has increased the budget of the Crete-Athens interconnection to 380 million euros from an initial figure of 315 million euros. This 20 percent increase reflects the development cost, taking into account related projects in other parts of Europe as well as a high risk of delay-related costs.

The Crete-Athens interconnection needs to be completed in a 36-month period, far shorter than time periods of between 48 and 72 months offered for equivalent projects, internationally.

The Greek energy ministry has indicated a willingness to cooperate with the Cypriot consortium, making clear the project’s swift development is a pivotal factor behind decisions.

Greece has until October 31 to inform a European Commission committee if the country intends to support the Athens-Crete interconnection as a part of the wider PCI project or as a national project.

Euroasia takes Crete grid link case to supreme court

Euroasia Interconnector, a consortium of Cypriot interests heading a PCI-status grid interconnection to link the Greek, Cypriot and Israeli systems, has escalated its legal action against Greek power grid operator IPTO amid their dispute for control of the Greek segment’s development, planned to link Crete with Athens.

Euroasia has stepped up its legal action by filing a case to the Council of State, Greece’s Supreme Administrative Court, following a rejection by AEPP, the Authority for the Examination of Preliminary Appeals, reliable sources have informed energypress.

The Cypriot consortium is seeking to have an AEPP verdict overturned, which would disrupt related project tenders currently being held by Ariadne Interconnector, an IPTO subsidiary.

The case is scheduled to be heard on September 5, the sources noted, adding Greek authorities are in the process of making their legal preparations.

The recently appointed Greek energy minister Costis Hatzidakis has already made clear his intentions to not alter the project’s ongoing procedures, while also indicating a willingness for greater cooperation with the Cypriot side.

 

 

Crete link tender deadline for cables expires today

The deadline of a tender for the engineering, procurement and installation of underwater cable systems (2 x 500 MW) concerning the Crete-Athens electricity grid interconnection expires today following two extensions.

An initial July 22 deadline was extended to July 29 before being stretched further to August 5. These successive deadline extensions sparked rumors of possible revisions concerning the 330-km long project.

Power grid operator IPTO, whose subsidiary Ariadne Interconnection is staging the tender, has ruled out the possibility of any further extension.

IPTO is determined to make clear that the tender is pressing ahead despite efforts by Cypriot consortium Euroasia Interconnector aiming to block the procedure.

Euroasia Interconnector, heading a wider PCI-status project to link the Greek, Cypriot and Israeli grids, is at odds with IPTO for control of the Crete-Athens segment’s development.

Euroasia Interconnector took fresh legal action last week against IPTO and RAE, the Regulatory Authority for Energy, which, if successful, could prompt further tender delays.

The Crete-Athens electricity grid interconnection is urgently needed to prevent a looming energy shortage on the island, Greece’s largest. Outdated diesel-fueled power stations operating on the island need to be withdrawn to meet EU environmental regulations.

The Cretan grid interconnection project is scheduled to be completed in 2022.

Italy’s Prysmian and France’s Nexans, both leading companies in the field, have shown interest in the tender.

 

Euroasia escalates Crete grid link legal action, IPTO unperturbed

Euroasia Interconnector, a consortium of Cypriot interests heading a PCI-status grid interconnection to link the Greek, Cypriot and Israeli systems, has escalated its legal action against Greek power grid operator IPTO by submitting a suspension request intended to stop the latter’s development of the project’s Greek segment, to connect Crete with Athens.

The two sides have been at odds for control of the Greek segment’s development. The Crete-Athens electricity grid interconnection is urgently needed to prevent an energy shortage on Crete, Greece’s largest island.

The action comes following a meeting this week between Euroasia Interconnector officials and Greece’s newly appointed energy minister Costis Hatzidakis. The Cypriot officials obviously came out of the session  dissatisfied.

Euroasia Interconnector is seeking to overturn decisions by Greek authorities that have established Ariadne Interconnector, an IPTO subsidiary, as the Crete-Athens grid interconnection’s project promoter.

The latest legal action threatens to block tenders concerning the local segment’s development.

IPTO’s legal representatives are confident the latest action will prove futile and not lead to any further delays of the the project’s two tenders, both currently in progress.

Participants of a tender for the engineering, procurement and installation of cables and stations concerning the Crete-Athens electricity grid interconnection face an August 5 deadline, following two extensions. A second tender for the engineering, procurement and installation of two transformer stations and a substation concerning the project has been extended to August 30.

 

 

Crete grid link urgent, minister stresses at Cyprus meeting

Euroasia Interconnector, a consortium of Cypriot interests heading a PCI-status grid interconnection to link the Greek, Cypriot and Israeli systems, is prepared to collaborate with Greek authorities for the development of the project’s Greek segment, to connect Crete with Athens, as long as Greece accepts a related road map set by the European Commission last October, sources have informed.

Essentially, this can be interpreted as a Cypriot demand for Greece to accept the project’s technical specifications that were rejected by Greek power grid operator IPTO and the previous Syriza government.

Last year’s road map includes all the technical, financial and interconnection details concerning the project’s three segments, linking Athens with Crete, Crete with Cyprus and Cyprus with Israel. Absolute compatibility is essential.

Greek energy minister Costis Hatzidakis, who met yesterday with Euroasia Interconnector’s top officials, emphasized the importance being placed by the newly elected conservative New Democracy government on the project’s swift development.

Fast progress will serve as the main criterion when determining action to be taken, Hatzidakis stressed at the meeting, in Nicosia, adding that, if possible, the support of EU funds would be a bonus. PCI projects are entitled to EU support funds.

IPTO and Euroasia Interconnector have been at odds for control over the development of the project’s Crete-Athens segment. It is needed urgently to prevent a looming energy shortage on Crete as of next year, when old units still operating on the island will need to be withdrawn to align the country with EU environmental policies.