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.