Euroasia Interconnector

Crete grid link urgent, minister stresses at Cyprus meeting

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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a looming energy shortage on Crete as of next year, when old units still operating on the island will need to be withdrawn to align the country with EU environmental policies.

Crete grid link tender deadline extended by a few days

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The deadline of a tender for the engineering, procurement and installation of cables and stations concerning the Crete-Athens electricity grid interconnection, needed to prevent an energy shortage on the island, Greece’s largest, has been re-extended to August 5 from July 29, after the initial expiry date had been set for July 22.

Power grid operator IPTO, which has established the Ariadne Interconnector subsidiary for the project’s development, needed, according to the tender’s terms, to inform participants of the latest deadline no later than three days before the existing deadline. IPTO issued an announcement on the deadline extension yesterday.

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.

Earlier this week, the Council of State, Greece’s Supreme Administrative Court, rejected a case filed by Euroasia Interconnector against the tenders, paving the way for IPTO to push ahead with the project, to be completed over two stages. The first will link Crete with the Peloponnese while the second will connect Crete with the Athens area.

Euroasia Interconnector, a consortium of Cypriot interests heading a wider PCI-status project to link the Greek, Cypriot and Israeli grids, has fought for development control of the Crete-Athens segment.

According to some sources, the Greek government may exhaust all possibilities for the project’s funding support through the EU’s PCI catalog, offering favorable terms. The interconnection’s development as a national project is another option.

A government decision on the course it will opt to take is expected over the next few days. The priority, at this stage, is to push ahead for the project’s swift completion.

 

Swift progress needed for Cretan link, minister supports

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There is no time to waste on the Crete-Athens grid interconnection project, while a solution in a dispute between Greek power grid operator IPTO and Cypriot consortium Euroasia Interconnector for control of the project’s development is desirable, the newly appointed energy minister Costis Hatzidakis has supported in comments at an Economist conference in Athens.

These thoughts, supporting swift development of the Cretan link, needed to avoid an energy shortage on the island, were also expressed by the Greek minister to his Cypriot counterpart Giorgos Lakkotrypis on the sidelines of the event, their first meeting since Hatzidakis assumed his post.

IPTO chief executive Manos Manousakis expressed satisfaction over the Greek energy minister’s determination to push ahead with the Cretan grid link.

Euroasia Interconnector, heading a PCI-status Greek-Cypriot-Israeli electricity grid connection project, is seeking control, as provider, of the wider plan’s Greek segment.

The country’s newly elected conservative New Democracy government must still clarify, to the European Commission, whether it supports the inclusion of the entire Greek-Cypriot-Israeli project, or just the Crete-Cyprus-Israel segment, on a new PCI list being prepared by the EU body. The previous Syriza government’s energy ministry supported the latter, taking national control of the domestic Crete-Athens section.

The energy ministry intends to forward a letter, officially expressing its position on the matter, within the next few days, sources have informed.

 

Crete grid link project tenders headed for new extension

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Bidding deadlines for two tenders concerning the respective procurement of cables and transformers for the Crete-Athens grid interconnection, a project that is urgently needed to prevent a looming energy shortage on Crete, are headed for an extension.

Ariadne Interconnector, an SPV subsidiary established by power grid operator IPTO for the project’s development, will need to extend its bidding deadlines for the two tenders as AEPP, the Authority for the Examination of Preliminary Appeals, looking into action taken by Eurosia Interconnector, a consortium of Cypriot interests heading the wider PCI-status Greek-Cypriot-Israeli grid interconnection, has deferred its hearing for July 22 from July 15.

Euroasia Interconnector has been at odds with IPTO for development control of the wider project’s Crete-Athens segment.

The deadlines for the tenders now coincide with AEPP’s new date for the hearing. The deadline for the tender concerning the procurement of cables was previously set for July 8 before being extended to July 22. The tender for transformers was originally set for July 22.

Both tenders cannot proceed until AEPP has reached a decision on the dispute between IPTO and Eurosia Interconnector.

IPTO and RAE, the Regulatory Authority for Energy, have already submitted their cases for the AEPP hearing.

According to pundits, Eurosia Interconnector’s chances of a decision in its favor are minimal, at best.

The Cypriot consortium’s decision to take its case to AEPP has been interpreted as a time-buying initiative taken with the hope of gaining the support of the newly elected Greek government.

While in opposition, the New Democracy party, which won last Sunday’s Greek elections, had not made clear whether it supported moves by IPTO, RAE and the ex-energy minister Giorgos Stathakis that ended up giving the Ariadne Interconnector subsidiary control of the Crete-Athens segment.

 

Elections, EuroAsia case to delay Crete link tender approval

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Greece’s upcoming elections on July 7 and legal action pursued by EuroAsia Interconnector stand in the way of a decision by RAE, the Regulatory Authority for Energy, to approve the terms of a competition offering investors a minority stake of up to 39 percent in Ariadne Interconnection, a subsidiary established by power grid operator IPTO for the development of a grid interconnection project to link Crete with Athens.

The RAE decision was expected any day now, but these two factors will delay the announcement for a latter date, sources at IPTO have informed.

Euroasia Interconnector, a consortium of Cypriot interests heading a wider PCI-status Greek-Cypriot-Israeli electricity grid connection, has reacted as IPTO has taken control of the project’s Crete-Athens segment.

The consortium has submitted a case to Greece’s Authority for the Examination of Preliminary Appeals (AEPP) challenging tenders for the Crete-Athens link’s tenders concerning the project’s development (cables and transformers, budgeted at 600 million and 315 million euros, respectively).

AEPP has set a July 15 date to hear the Cypriot consortium’s case. EuroAsia Interconnector’s bid is not expected to succeed, legal officials explained, as this authority’s jurisdiction deals with companies protesting  tender terms that could exclude them from participating. Even so, the case needs to be heard and will contribute to the delay in RAE’s approval.

The Athens-Crete grid interconnection is urgently needed as electricity demand on the island is increasing while high-polluting units operating on Crete will soon need to be withdrawn as part of the EU’s environmental policy.

IPTO has committed itself to delivering the Athens-Crete link by the end of 2022.

 

EuroAsia avoids challenge against Crete link tender terms

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Euroasia Interconnector, heading a PCI-status Greek-Cypriot-Israeli electricity grid connection but at odds with Greek power grid operator IPTO for control, as provider, of the project’s Crete-Athens segment, has chosen not to take preliminary legal action challenging the terms of a related project tender, energypress sources have informed.

A deadline set by IPTO subsidiary Ariadne Interconnection for any legal challenges expired yesterday. Action by Ariadne Interconnection, a consortium of Cypriot interests, had been anticipated by a number of officials.

On May 24, when the Ariadne Interconnection tender’s terms were announced, IPTO chief executive Manos Manousakis underlined that all interested parties, domestic and foreign, need to contribute, implying project delays would be prompted if either EuroAsia or the European Commission took legal action.

The Crete-Athens interconnection, budgeted at 915 million euros, is scheduled for completion within 2022.

EuroAsia’s restraint may reflect a new strategy by the Cypriot consortium entailing an effort to secure Greek government support required for the induction of the rest of the project (Crete-Cyprus-Israel) into the EU’s next PCI list, which ensures EU funding support.

Crete link project needed fast, Euro MP candidates agree

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Crete’s electricity grid interconnection with Athens, a project needed to prevent a looming energy shortage threat on the island, must be swiftly developed, Euro MP candidates representing the Syriza, New Democracy, KINAL and Potami parties agreed at an event staged yesterday by Hellenic Production, an industry roundtable for growth organized by both smaller and larger manufacturing companies and the country’s main regional manufacturing associations.

The party officials also questioned, and even condemned, the European Commission’s insistence in supporting EuroAsia Interconnector – a consortium of Cypriot interests heading a wider PCI-status Greek-Cypriot-Israeli electricity grid interconnection project – for control of the Crete-Athens segment. This persistence has delayed the Cretan project and prompted economic and energy security issues for the island, the Euro MP candidates stressed.

Greek power grid operator IPTO, which chose to withdraw the Crete-Athens segment from the wider project, has been embroiled in a dispute with EuroAsia Interconnector for control of the domestic section.

New Democracy party candidate Maria Spyraki and KINAL’s Eva Kaili both contended that the Crete-Athens interconnection project’s technical specifications, as set by IPTO, will end up sidelining Greek players.

This is burdensome for the Greek econony, Spyraki noted, reminding of the government’s decision for development of the Cretan interconnection as a national project with NSRF funding rather than as a PCI-status project.

All four party representatives agreed energy costs for Greek enterprises need to be reduced. Spyraki, the New Democracy party candidate, referred to a PWC study whose findings show energy costs for Greek industry are 60 percent higher compared to those of European rivals.

 

 

Crete link tender designed to overcome any legal complications

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A tender being prepared by RAE, the Regulatory Authority for Energy, for Crete’s major-scale electricity grid interconnection with Athens will include terms ensuring the prevention of any legal complications for the procedure, regardless of whether the project will be developed as a national or PCI-status project.

RAE officials have ascertained decisions will soon be reached so that the tender may be launched within May.

The Crete-Athens interconnection is still part of the EU’s PCI list as it was initially incorporated into a wider PCI-status interconnection involving the Greek, Cypriot and Israeli systems. However, Greece’s power grid operator IPTO withdrew the Crete-Athens segment as a result of a dispute with Euroasia Interconnector, a consortium of Cypriot interests heading the wider project, for control of the local segment.

IPTO chief executive Manos Manousakis disclosed yesterday that the operator will seek EU structural funds as it views the Crete-Athens as a national project.

Ariadne Interconnection, a special purpose vehicle established by IPTO for the project, is set to submit an application for EU structural funds, Manousakis noted. The official said he is confident of a favorable response from EU authorities as the Crete-Athens link is a project of major importance for the national economy and will ensure long-term energy security for Crete.

An updated PCI list will be finalized in autumn. Until then, the Crete-Athens link will remain a part of the current PCI catalog. Athens officially informed Brussels of its decision to remove the wider interconnection’s Greek segment on April 12.

The Crete-Athens link will be developed as planned and completed within the final quarter of 2022 if no other delays emerge and the tender is launched this month, IPTO officials have noted.

 

 

Euroasia legal action ‘will not delay’ Crete interconnection

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Legal action allegedly taken by Euroasia Interconnector against RAE, Greece’s Regulatory Authority for Energy, for its decision to grant the power grid operator IPTO control of the development of the Crete-Athens electricity grid interconnection will not affect the project’s progress, energy minister Giorgos Stathakis has told reporters when asked to comment.

Euroasia Interconnector, a consortium of Cypriot interests, heads a wider PCI-status Greek-Cypriot-Israeli electricity grid interconnection project. IPTO has taken control of the project’s Crete-Athens segment and established an SPV subsidiary, Ariadne Interconnector, for its development.

Euroasia Interconnector has apparently filed a case against RAE at a Greek court and also submitted an official complaint to the European Commission for infringement of PCI regulations, according to reports. This latter move could pave the way for a  European Court hearing.

RAE has not been informed of any legal action taken by Euroasia Interconnector, officials at the regulatory authority contended.

 

Greek PCI support for Eurosia conditional, minister suggests

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Greece’s decision to proceed with the development of the Crete-Athens electricity grid interconnection as a national project through power grid operator IPTO’s special purpose vehicle Ariadne rather than as part of a wider Euroasia Interconnector project planned to link the Greek, Cypriot and Israeli grids has cast doubts over the future PCI status of Euroasia’s Crete-Cyprus and Cyprus-Israel segments.

Euroasia Interconnector, a consortium of Cypriot interests heading the wider project, will need the support of all parties involved if the Crete-Cyprus and Cyprus-Israel segments are to secure a place in the EU’s new PCI list, enabling favorable funding, when the updated list is published later this year, in autumn.

Though Greece’s energy ministry has yet to make its intentions clear, it faces pressure, especially from Cyprus, to support the continued PCI-status of the Crete-Cyprus and Cyprus-Israel segments as their development would end Cyprus’ electricity grid isolation.

Greece’s stance will most likely depend on Euroasia Interconnector’s moves and whether it will seek to obstruct the development of the Crete-Athens interconnection through legal procedures and other action.

Energy minister Giorgos Stathakis has suggested Greece’s support for the wider project’s PCI status would be conditional.

IPTO recently decided to remove the Crete-Athens segment from the wider Greece-Cyprus-Israel interconnection project as the operator was embroiled in a dispute with the Cypriot consortium over the local segment’s control.

RAE expecting extra IPTO data for Ariadne WACC figure

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

Besides IPTO, RAE’s WACC decision will also interest investors interested in acquiring a minority stake expected to soon be offered in Ariadne.

IPTO plans to offer an Ariadne stake of less than 49 percent, the most likely figure being a 39 percent share that had been offered to Euroasia Interconnector, a consortium of Cypriot interests heading the wider PCI-status Greek-Cypriot-Israeli electricity grid interconnection project.

IPTO and Euroasia have been embroiled in a dispute for control of the project’s Crete-Athens segment. Euroasia did not respond to a February 28 deadline for this minority share but, instead, has warned of taking action.

IPTO has already submitted a proposal to RAE for the remainder of the regulatory period covering 2018 to 2021. A WACC figure already set by RAE for the national grid for this period, beginning at 7 percent and gradually descending to 6 percent, will serve as a base for the Ariadne figure.

Investors will be invited to submit bids to an Ariadne tender over two stages, beginning with expressions of interest to shortlist contenders, and followed by binding offers. An Internal Rate of Return (IRR)  maximum price will be set as a starting price for a descending price auction.

 

Crete link national development ‘will not burden consumers’

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A separation of the Crete-Athens grid interconnection project from the wider PCI-status Greek-Cypriot-Israeli interconnection, appearing highly likely, will not financially burden Greek consumers but instead offer surcharge-related benefits, leading energy ministry officials told energypress on the sidelines of the just-completed Delphi Economic Forum.

Swift development of the Crete-Athens link, as a national project, promises to spare consumers of public service compensation (YKO) surcharges costing approximately 400 million euros per year, energy ministry officials stressed.

These YKO surcharges are added to electricity bills to cover high-cost electricity production at power facilities maintained on non-interconnected islands.

The Crete-Athens grid will cost the country roughly one billion euros to develop, regardless of the development option chosen, the energy ministry officials supported.

Euroasia Interconnector, a consortium of Cypriot interests heading the wider PCI-status Greek-Cypriot-Israeli project, has claimed a withdrawal of the Crete-Athens grid project from the consortium for development as a national project would deprive Greece of EU funding worth 355 million euros from the CEF (Connecting Europe Facility).

Electricity consumers in Greece will need to cover this amount through increased network surcharges over the long term, the Euroasia Interconnector consortium has warned.

The Delphi Economic Forum was held to identify and assess global trends and their impact on decision makers of the wider eastern Mediterranean region.

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

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

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

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

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

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

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

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

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

 

 

IPTO to keep over 51% of SPV for Crete grid interconnection

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Power grid operator IPTO has finalized a plan for a tender to seek strategic investors for Ariadne Interconnector, its SPV established by the operator to develop the Crete-Athens grid interconnection.

The IPTO plan is expected to be submitted to RAE, the Regulatory Authority for Energy, within the next few days for approval. This could take some time as the grid interconnection, crucial for Crete’s energy needs, will now be categorized as a national project and no longer be part of the wider PCI-status Greek-Cypriot-Israeli electricity grid interconnection project.

Euroasia Interconnector, a consortium of Cypriot interests heading the wider project, has been embroiled in a dispute with IPTO for control of the Crete-Athens segment.

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

Euroasia Interconnector is not expected to accept. If so, RAE, immediately following the February 28 deadline, will award the Crete-Athens project to Ariadne as a national project and a tender for strategic investors should be announced soon after.

Investors are expected to be offered less than a 49 percent stake of the Ariadne Interconnector SPV, the most likely share being 39 percent, the corresponding stake offered to Euroasia Interconnector amid the dispute.

Ariadne is expected to sign a concession agreement for the project’s development. The SPV will hand over the completed project to IPTO and then be compensated through commission fees generated by the project’s utilization.

Euroasia Interconnector is expected to react and demand either a financial sum or a percentage of the project as compensation covering project study costs and other preliminary work.

 

 

IPTO in Crete link talks with RTE, Elia, Scottish Power

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Greek power grid operator IPTO has begun its search for strategic partners in the development and operation of the Crete-Athens grid interconnection, sources have informed.

Last week, the operator’s chief executive Manos Manousakis informed a tender offering a stake in Ariadne Interconnector, an SPV established by IPTO for the project’s development, would be launched by the end of February with the aim of selecting new strategic investors within the next three months.

At this stage, IPTO appears to be planning to offer a 49 percent stake of its SPV to strategic partners for the Crete-Athens grid link project, budgeted at one billion euros.

IPTO has already approached three European operators, France’s RTE, Belgium’s Elia and Scottish Power, a subsidiary of Spain’s Iberdrola, the sources informed. Talks between IPTO and RTE, a participant in the power grid operator’s recent sale offering a 24 percent stake, are believed to have made the most progress so far.

IPTO has already taken preliminary pre-construction and financing steps for the Crete-Athens project, needed to combat a looming energy shortage threat on Crete. The operator, determined to pursue the link as a national project, is aiming for a 2022 launch.

IPTO has been embroiled in a dispute with Euroasia Interconnector, a consortium of Cypriot interests heading a wider PCI-status Greek-Cypriot-Israeli electricity grid interconnection project, for control of the Crete-Athens segment.

IPTO plans Crete link tender for Euroasia’s neglected 39%

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Greek power grid operator IPTO has announced it will stage a tender offering investors, especially European operators, a stake in Ariadne Interconnector, an SPV established by the grid operator for the development of a Crete-Athens interconnection.

The move was prompted by the neglection of a pre-emption right, for a 39 percent stake in the SPV, by Euroasia Interconnector, a consortium of Cypriot interests heading a wider PCI-status Greek-Cypriot-Israeli electricity grid interconnection project. Euroasia Interconnector had been set a December 31 deadline to accept the offer for 200 million euros.

IPTO and the Cypriot consortium have been embroiled in a dispute for control of the wider grid interconnection project’s Crete-Athens segment.

RAE, the Regulatory Authority for Energy, which appointed IPTO project promoter of the Crete-Athens link, required to prevent a looming energy shortage threat on Crete, will need to approve IPTO’s plan for a tender before this procedure can go ahead.

Euroasia Interconnector will now need to participate in IPTO’s prospective tender should it ultimately decide to become involved in the development of the Crete-Athens grid interconnection.

IPTO has already begun contacting European energy transmission operators, Manos Manousakis, chief executive at IPTO, informed yesterday. The Greek operator had approached Belgium’s Elia and France’s RTE in the past. A new invitation for their participation cannot be ruled out.

Euroasia Interconnector is widely expected to launch a legal challenge.

Earlier this month, the European Commissioner for Climate Action and Energy Miguel Arias Canete forwarded a letter to Greek energy minister Giorgos Stathakis informing him that RAE’s decisions have led to delays in the wider PCI project, according to Greek daily Kathimerini.

The commissioner has apparently asked Greece to decide whether the Crete-Athens grid interconnection will be developed as a PCI project, enabling EU funding advantages, or as a national project, which would eliminate the project’s promoter from the Connecting Europe Facility (CEF), a key EU funding instrument. The repercussions would spill over onto tariffs paid by consumers.

 

 

IPTO, RAE negotiating WACC rate for disputed Crete link

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RAE, the Regulatory Authority for Energy, is negotiating an official WACC figure with Greek power grid operator IPTO, for the Crete-Athens section of the wider PCI-status Greek-Cypriot-Israeli electricity grid interconnection project, headed by Euroasia Interconnector, a consortium of Cypriot interests.

A 7.3 percent investment yield rate for the project’s Crete-Athens segment previously agreed to by the Greek and Cypriot authorities for energy was only indicative and remains unofficial.

IPTO, granted control by RAE of the Crete-Athens segment, is pushing for a considerably higher WACC rate but RAE insists the figure should be set at a lower level, energypress sources have informed.

The setting of a WACC figure is a crucial step for the development of the Crete-Athens link, needed to prevent an energy shortage threat on Crete as of 2020.

However, an ongoing dispute between the Greek and Cypriot sides for control of the wider project’s Crete-Athens segment is complicating matters.

Euroasia Interconnector has refused to acknowledge the legality of RAE’s decision to appoint IPTO project promoter of the Crete-Athens section. This was made clear, yet again, in a January 18 letter forwarded by the Cypriot consortium to related authorities on both sides of the dispute as well as the European Commission,  expressing the consortium’s refusal to appoint a representative for a technical interoperability committee demanded by Brussels as a supervisory body for the wider PCI project’s compatibility.

Four days earlier, RAE had asked Euroasia Interconnector to appoint a representative for this technical committee by the January 18 date. Instead, in its letter, Euroasia Interconnector described the initiatives taken by RAE as illegal and called for the Greek energy authority to honor commitments set in a road map endorsed by Brussels for the wider PCI project.

 

IPTO aiming for Crete-Athens link tender within February

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Ariadne Interconnector, Greek power grid operator IPTO’s subsidiary established as an SPV for the development of the Crete-Athens electricity grid interconnection, expects to be ready to launch a tender covering all the project’s segments by the end of February, IPTO officials have informed.

Meanwhile, Euroasia Interconnector, a consortium regarding the Crete-Athens link as part of a wider PCI-status Greek-Cypriot-Israeli electricity grid interconnection project, which it is heading, yesterday finalized its shortlist of candidates for a tender of its own.

RAE, the Regulatory Authority for Energy, appointed IPTO as the project promoter of the Crete-Athens section without approval from Brussels.

It remains to be seen if the Crete-Athens link will retain its PCI status given the dispute between IPTO and Euroasia Interconnector for control of the Crete-Athens segment.

The Greek side appears determined to pursue the Crete-Athens grid link alone as a national project, without third-party endorsements, including from the European Commission.

As the Greek energy ministry sees it, a two-year delay of the project has now been certified as Euroasia Interconnector failed to officially intervene by December 31. According to the ministry, this delay permits  RAE to handle the Crete-Athens grid link as a national project and, if needed, seek its addition onto the new PCI list, facilitating EU funds.

All is still vague, however, as the European Commission has acknowledged that RAE’s decision to place IPTO at the helm of the Crete-Athens grid link project has caused problems for the wider project’s promoter.

Euroasia deadline for Crete link’s 39% right expires today

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A pre-emption right granted to Euroasia Interconnector, a consortium of Cypriot interests heading a PCI-status Greek-Cypriot-Israeli electricity grid interconnection project, for a 39 percent stake in Ariadne Interconnector, an SPV established by Greek power grid operator IPTO for the wider project’s Crete-Athens segment, expires today.

The Cypriot consortium is not expected to emerge and accept this first option to acquire the SPV’s 39 percent as it doubts decisions taken by RAE, the the Regulatory Authority for Energy, to endorse Ariadne Interconnector and will continue its preliminary work viewing the grid interconnection project as a whole, sources noted.

At the other end, IPTO is making moves to prepare for the construction of the interconnection’s Crete-Athens segment, planned to run from Korakia, on Crete’s northern coast.

The two entities have fought for control of the Crete-Athens segment.

Greek authorities intend to develop the Crete-Athens segment, needed to counter a looming energy insufficiency on Crete as of 2020, as a national project as talks with Euroasia Interconnector, backed by the European Commission, have reached an impasse.

According to the energy ministry, if Euroasia Interconnector does not make today’s deadline, then RAE, basing its actions on a certified two-year delay of the project, will be able to categorize the Crete-Athens segment as a national project and, as follow-up action, if needed, seek to secure PCI status for this interconnection.

 

Crete grid link seen as national project despite EC pressure

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The energy ministry appears to have decided to develop the Crete-Athens electricity grid interconnection as a national project with EU cohesion policy funding through the Multiannual Financial Framework for 2014 to 2020, despite intensifying European Commission pressure for this project to be headed by Euroasia Interconnector, a consortium of Cypriot interests heading a wider Greek, Cypriot and Israeli PCI-status interconnection project.

Brussels has stepped up its pressure on Greece with a new letter to RAE, the Regulatory Authority for Energy, from Klaus-Dieter Borchardt, Director at the European Commission’s Directorate B on the Internal Energy Market. It was received by the authority last Thursday.

Athens and Brussels have been at odds over the Crete-Athens link ever since RAE appointed an SPV named Ariadne, a Greek power grid operator IPTO subsidiary, as the project segment’s promoter.

Greek officials are believed to also be considering applying for the Crete-Athens link’s inclusion in a new PCI list to be published by the EU, possibly along with the Crete-Cyprus segment, as part of a new firm, if Nicosia agrees.

The dispute is not expected to affect the development of the Crete-Athens link, needed to prevent an energy shortage threat on Crete as of 2020, when old diesel-fired power stations operated on the island by the main power utility PPC will need to be shut down.

IPTO’s Ariadne plans to officially launch the Crete-Athens project in the first quarter of 2019 and base its development along the lines of a financing formula applied to a smaller-scale Crete-Peloponnese link. IPTO capital, bank financing, as well as EU cohesion funding, covering up to 25 percent of the project’s budget, are intended.

New Brussels warning on Crete link, all lawful Greek side insists

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The European Commission has sent local authorities handling the Crete-Athens grid interconnection’s development a new warning to observe terms set by Brussels and nullify a decision giving Ariadne Interconnection, an IPTO power grid operator-backed special purpose vehicle, control of the project or risk losing its PCI status.

The Brussels letter, forwarded to Greece’s energy ministry, RAE, the Regulatory Authority for Energy, and IPTO, is the latest reminder of the adamant stance being maintained by both sides in the dispute.

IPTO and Euroasia Interconnector, a consortium of Cypriot interests heading the wider Greek, Cypriot and Israeli PCI-status interconnection plan, have fought for control over the Crete-Athens segment.

All moves made by Greek side are lawful and based on terms agreed to between IPTO and Euroasia Interconnector, energy ministry sources have told energypress.

The initiative taken by Greek authorities to give the Ariadne Interconnection SPV control of the Crete-Athens grid link has put in place procedures for the swift development of the interconnection project, pivotal to resolving Crete’s energy shortage threat as of 2020, the ministry sources added.

Diesel-fired power stations operated on the island by the main power utility PPC will need to have stopped running by the end of 2019.

IPTO is currently working on launching a tender for the Cretan interconnection in the first quarter of 2019. An environmental impact study has been submitted while a deep-sea survey has been completed, Manos Manousakis, chief executive at IPTO, informed last week.

 

Crete-Athens link tender announcement seen 1Q of 2019

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Power grid operator IPTO, given the green light by RAE, the Regulatory Authority for Energy, for the development of the Crete-Athens grid interconnection, despite European Commission objections, is pressing ahead and expects to receive approval of its related environmental studies in two to three months before launching a tender by March, 2019.

IPTO, currently progressing based on a schedule set by RAE, has completed various preliminary work, including deep-sea studies, and aims to complete the project by September, 2022.

Greek authorities are planning to keep the main power utility PPC’s diesel-fired power stations on Crete running beyond an end-of-2019 limit set by Brussels to avert an energy supply threat on the island, as was made known earlier this week by energy minister Giorgos Stathakis. His ministry has submitted a related application to Brussels for a deadline extension.

RAE is believed to still be considering various alternative options, including a proposal from Qatar for 200-MW capacity electricity supply to the island via an LNG tanker and generation facility. The cost of this option is believed to equal that of keeping PPC’s current stations running.

A proposal by energy firm Terna entailing the transfer of its gas-fueled Heron I unit, located on the outskirts of Thebes, to Crete is also still on the cards.

Euroasia Interconnector, a consortium of Cypriot interests heading a wider PCI-status project planned to link the Greek, Cypriot and Israeli power grids, has contested with IPTO for control of the wider project’s Crete-Athens segment.

RAE to reiterate Crete project link commitments to all parties involved

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RAE, the Regulatory Authority for Energy, intends to reiterate and seek reconfirmation of commitments taken on by all parties involved in the delayed Crete-Athens grid interconnection’s development via a letter to be forwarded to all, sources have informed. The move is seen as a counterattack following criticism by Brussels officials.

Besides Euroasia Interconnector – a consortium of Cypriot interests heading a wider PCI-status project planned to link the Greek, Cypriot and Israeli power grids – Greece’s power grid operator IPTO and its Cypriot counterpart, RAE will also forward copies of the letter to the European Commission and Greece’s energy ministry, for their information.

A dispute between IPTO and Euroasia Interconnector for control over the wider project’s Greek segment has prompted delays.

According to sources, Euroasia Interconnector and the Cypriot power grid operator, in a letter to RAE, recently named their representatives for a committee being assembled to work on ensuring the technical compatibility of the Greek section with the overall grid interconnection project’s Crete-Cyprus and Cyprus-Israel segments. RAE intends to soon name the committee’s Greek representatives, sources informed.

RAE, in its letter, will also highlight the need for the local interconnection project’s swift progress so as to prevent an energy shortage threat on Crete as of 2020 due to EU-required closures of outdated diesel-fired power stations still operating on the island.

Euroasia Interconnector has been granted a deadline extension until the end of the year to present capital needed for its participation in Ariadne, a special purpose vehicle (SPV) established by IPTO for the project’s Greek segment, RAE is expected to remind in its letter.

RAE’s overall handling of the matter does not contravene EU regulations or threaten the project’s PCI status, the authority contends.

 

RAE adamant on its Crete link plan despite Brussels objection

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RAE, the Regulatory Authority for Energy, appears adamant about its recent decision to appoint Greek power grid operator IPTO as project promoter of the Crete-Athens grid interconnection despite objections from the European Commission, insisting Euroasia Interconnector, a consortium of Cypriot interests heading a wider Greek-Cypriot-Israeli PCI-status interconnection project, remains in charge of the Crete-Athens segment.

Latest developments in the dispute indicate RAE will push ahead with details concerning its decision to place IPTO at the helm of the Crete-Athens link within the next fortnight. These details include the provision of an environmental license to IPTO and the assembly of a technical team to work on the Crete-Athens link’s compatibility with the wider project.

In comments to energypress, RAE officials said the authority will push ahead as planned, contending its actions to date comply with EU laws and regulations. The Greek energy authority took action following a report delivered by ACER, Europe’s Agency for the Cooperation of Energy Regulators, which confirmed the PCI-status project was two years behind schedule, the RAE sources added.

The concerns of Greek officials are focused on a looming energy sufficiency threat on Crete as of 2020, when high-polluting diesel-fueled power stations operating on the island will need to be withdrawn.

It remains unclear if the dispute will bring together Greece’s energy minister Giorgos Stathakis and European Commissioner for Climate Action and Energy Miguel Arias Canete for higher-level talks on the matter.

 

New Athens-Brussels standoff in Crete-Athens link talks

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Two teams of Greek energy ministry and European Commission Directorate-General for Energy technocrats have reached an impasse in negotiations held to resolve a dispute concerning control of the Crete-Athens grid link, planned as a segment of the wider Greek, Cypriot and Israeli interconnection.

The failure of the two teams to reach an agreement, needed to prevent a looming energy sufficiency threat on Crete as of 2020, will now elevate the negotiations to a higher political level for direct talks between Greece’s energy minister Giorgos Stathakis and European Commissioner for Climate Action and Energy Miguel Arias Canete.

Earlier this week, Canete made clear Greece will not be granted any further deadline extensions beyond December 31, 2019 for diesel-fueled power stations operating on Crete.

Commenting yesterday, Klaus-Dieter Borchardt, Director at the European Commission’s Directorate B on the Internal Energy Market, declared all negotiating efforts at the current level of talks have now been exhausted.

Greek power grid operator IPTO and Euroasia Interconnector, a consortium of Cypriot interests heading the Greek, Cypriot and Israeli PCI-status interconnection project, have fought for control of the Crete-Athens segment.

The European Commission this week declared that Euroasia Interconnector, the project promoter of the wider Greek, Cypriot and Israeli link, also remains in charge of the Crete-Athens segment. RAE, Greece’s Regulatory Authority for Energy, has placed an SPV named Ariadne, an IPTO subsidiary, at this segment’s helm.

Euroasia still at helm of Crete-Athens link, Brussels notes

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Euroasia Interconnector, a consortium of Cypriot interests heading a PCI-status project planned to link the Greek, Cypriot and Israeli power grids, remains project promoter of the wider project’s Crete-Athens segment, while any revisions to this standing would require the consortium’s compliance, the European Commission has pointed out in a letter forwarded to Greece’s energy ministry.

Greek power grid operator IPTO and Euroasia Interconnector have fought for control of the wider project’s Crete-Athens segment.

RAE, Greece’s Regulatory Authority for Energy, recently placed an SPV named Ariadne, an IPTO subsidiary with equity capital of 200 million euros, at the helm of the Crete-Athens segment, without consulting Brussels. This initiative is illegal given the content of the latest letter forwarded by the European Commission to the Greek energy ministry.

The European Commission is currently also seeking to fine-tune the tasks of a technical committee, whose establishment has been agreed to in order to ensure the wider Greek-Cypriot-Israeli project’s compatibility.

Canete: No further extension for Crete’s diesel-run power stations

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Greece will not be given any further deadline extensions beyond December 31, 2019 for diesel-fueled power stations operating on Crete, the European Commissioner for Climate Action and Energy Miguel Arias Canete has noted.

The Brussels authority was responding to a question raised by Syriza party Euro MP Stelios Kouloglou concerning Crete’s grid interconnection project delays and the island’s consequent energy sufficiency threat – if the existing power stations, high-polluting units, are withdrawn prior to the grid interconnection’s operational launch.

The Cretan interconnection – with the Peloponnese, as a first step, followed by a link with the Athens grid – represents a segment of a wider PCI-status project planned to link the Greek, Cypriot and Israeli power grids.

Cypriot energy minister Giorgos Lakkotrypis has urged his Greek counterpart Giorgos Stathakis to support action that would ensure Greece’s energy-related support for Cyprus and prevent a collapse of the PCI-status project.

The European Commission is working on the wider project’s development with all sides involved, Canete stressed in his response.

Greek power grid operator IPTO and Euroasia Interconnector, a consortium of Cypriot interests heading the Greek-Cypriot-Israeli project, have fought for control of the wider project’s Crete-Athens segment.

Athens-Crete grid link issues a ‘concern’ for Cypriot interconnection

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Cypriot energy minister Giorgos Lakkotrypis has urged his Greek counterpart Giorgos Stathakis to support action that would ensure Greece’s energy-related support for Cyprus and prevent the island nation’s isolation in this sector.

Lakkotrypis, who expressed his appeal in a letter forwarded to the Greek energy minister following meetings and telephone discussions, is pushing for a solution that would resolve a dispute between Greek power grid operator IPTO and Euroasia Interconnector, a consortium of Cypriot interests heading a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete. The two sides have fought for control of the wider project’s Crete-Athens segment.

The wider project’s development is crucial for EU plans aiming to interconnect the Greek and Cypriot electricity markets and, by extension, the Cypriot and European markets.

 

Compromise reached for Crete-Athens link, tender soon

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Greek power grid operator IPTO will remain at the helm of the Crete-Athens grid interconnection, as its project promoter, all sides involved appear to have agreed at a meeting in Brussels yesterday.

The development is in line with the overall position maintained by energy minister Giorgos Stathakis, who has been shown a willingness to discuss various options under the condition that these ensure control of the project for IPTO and a swift launch of its development

Greek officials are believed to have accepted some level of compromise. The details of this softened stance remain unknown but should be included in a document to be forwarded by the European Commission to all interested parties during the current week.

The Crete-Athens interconnection, ready for development in terms of technology and financing, according to IPTO, is crucial to ensure power sufficiency on Crete as of 2020.

Euroasia Interconnector, a consortium of Cypriot interests heading the wider PCI-status Greece-Cyprus-Israel grid interconnection project, has fought for control of the Crete-Athens segment with IPTO.

Yesterday’s agreement paves the way for a tender early in 2019 to facilitate the launch of work on the Crete-Athens link.

The Greek and Cypriot regulatory authorities for energy, Greek and Cypriot government officials, as well as representatives of IPTO, Euroasia Interconnector, ACER, Europe’s Agency for the Cooperation of Energy Regulators, and Belgian operator Elia, took part in yesterday’s meeting.

IPTO OKs technical committee for Crete link, wants swift action

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Power grid operator IPTO will accept the establishment of a technical committee for a supervisory role concerning compatibility between the Crete-Athens grid interconnection and a wider PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete, but wants this committee to have delivered its final decisions by November 30 for avoidance of further delays to the Crete-Athens segment.

The Crete-Athens interconnection, ready for development in terms of technology and financing, according to IPTO, is crucial to ensure power sufficiency on Crete as of 2020.

IPTO is expected to present a full plan at a meeting in Brussels today to focus on compatibility issues concerning the Crete-Athens segment and the wider Greece-Cyprus-Israel grid interconnection.

RAE, the Regulatory Authority for Energy, recently named the SPV “Ariadne Interconnection”, an IPTO subsidiary, the Crete-Athens link’s project promoter. Euroasia Interconnector, a consortium of Cypriot interests, heads the wider Greece-Cyprus-Israel interconnection project. IPTO and Euroasia have fought for control of the Crete-Athens link segment.

The Greek and Cypriot regulatory authorities for energy, Greek and Cypriot government officials, as well as representatives of IPTO, Euroasia Interconnector, ACER, Europe’s Agency for the Cooperation of Energy Regulators, and Belgian operator Elia, are all expected to take part at today’s meeting.