IPTO subsidiary replaces Euroasia as Crete-Athens link project promoter

RAE, the Regulatory Authority for Energy, has officially declared a special purpose vehicle (SPV) established by Greek power grid operator IPTO as project promoter for the Crete-Athens grid interconnection in place of Euroasia Interconnector, the consortium heading a wider PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete.

The SPV, named Ariadne Interconnector and established as an IPTO subsidiary, has, as a result, been given authority by RAE for the project’s financial matters and development. RAE’s decision on the matter, reached on September 10, was published yesterday in the government gazette.

The European Commission has questioned the purpose and legality of RAE’s move, seen as rushed, to award the IPTO subsidiary control of the Crete-Athens grid link.

Euroasia Interconnector, a consortium of Cypriot interests, is expected to resort to legal action following yesterday’s publication.

IPTO and Euroasia Interconnector have been locked in a dispute for control of the wider project’s Crete-Athens link.

Athens wants limited powers for Crete-Athens link committee

The role of a technical committee proposed by the European Commission last week to supervise technical requirements of the Crete-Athens link so as to ensure the project’s compatibility with the wider Greek-Cypriot-Israeli interconnection should be limited to examining the interconnectivity of technical choices and not offer any powers over the project’s technical requirements as a whole, the Greek energy ministry and prime minister’s office have requested, according to energypress sources.

The Greek government has stepped in to add political weight to a dispute prompted by the maneuvering of Greek power grid operator IPTO and Cyprus’s Euroasia Interconnector consortium for control of the Crete-Athens link.

RAE, the country’s Regulatory Authority for Energy, recently awarded IPTO control of the Crete-Athens link project’s development but the European Commission, which rejected this move, responded by calling for a special committee in a supervisory role.

IPTO has already made clear it cannot accept a situation in which the operator would be expected to invest capital while being subject to the control of others.

IPTO, Iberdrola officials to hold Crete-Athens grid link talks

Greek power grid operator IPTO and Spanish energy group Iberdrola representatives have planned a meeting for tomorrow following the latter’s interest for a role in the development of the Crete-Athens grid interconnection project.

IPTO is currently looking to establish partnerships with major European operators for this urgently needed project whose development promises to avert an electricity shortage threat on Crete in 2020. Greece faces an EU obligation to withdraw high-polluting power stations on the island by the end of 2019.

IPTO and Cyprus’s Euroasia Interconnector consortium have been locked in a dispute for control of the wider project’s Crete-Athens link.

At a meeting in Brussels on Monday, European Commission officials called for a solution by January that would enable the Greek operator to select project partners as long as technical requirements are supervised by a special committee as a means of ensuring compatibility between the Crete-Athens link and the wider Greek-Cypriot-Israeli interconnection.

It appears IPTO will not accept the request for the establishment of a special committee. Operator officials reminded that technical details concerning the project, as requested by RAE, were submitted by IPTO in late May and then backed by a sustainability plan.

IPTO officials contend that the European Commission’s handling of the matter is further delaying the project’s development.

The European Commission’s request for a special committee had been initially proposed by the Euroasia Interconnector consortium before being rejected by Brussels as an initiative that would block the project’s development, IPTO officials noted.

 

Crete-Athens link SPV ‘illegal but IPTO can still lead project’

The European Commission’s division for Projects of Common Interest regards an initiative by RAE, Greece’s Regulatory Authority for Energy, giving Greek power grid operator IPTO and its special purpose vehicle (SPV) development and financial control of a Crete-Athens grid interconnection plan as an illegal act, it made clear at a meeting in Brussels yesterday and called for the decision’s cancellation as a condition for the project to remain a part of Euroasia Interconnector, a wider PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete.

Even so, the Brussels-based PCI team noted it believes IPTO can still spearhead the project’s development and called for a solution by January that would enable the Greek operator to select its project partners as long as technical requirements are supervised by a special committee as a means of ensuring compatibility between the Crete-Athens link and the wider Greek-Cypriot-Israeli interconnection.

IPTO and Cyprus’s Euroasia Interconnector consortium have been locked in a dispute for control of the wider project’s Crete-Athens link.

Crete-Athens link project to maintain its PCI status, pundits believe

Pundits believe the European Commission’s division for Projects of Common Interest will decide to maintain the PCI status of a Crete-Athens electricity grid interconnection plan at a meeting in Brussels today, as otherwise, the future of the wider Euroasia Interconnector, a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete, would be placed in jeopardy.

The European Commission’s PCI division summoned officials representing all parties involved in a dispute for control of a Crete-Athens to today’s meeting in response to a recent decision by RAE, Greece’s Regulatory Authority for Energy, giving Greek power grid operator IPTO the task of establishing a special purpose vehicle (SPV) for the development of Crete’s interconnection with Athens.

According to RAE’s decision, IPTO will hold a 51 percent stake and other shareholders – the Euroasia Interconnector consortium has priority rights – will be offered 39 percent with an option for a further 10 percent.

A decision on the roles to be played by the Euroasia Interconnector consortium and European operators in the Crete-Athens link project’s development is also expected at today’s meeting.

IPTO and the Euroasia Interconnector consortium have been locked in a dispute for control of the Crete-Athens link.

RAE’s Crete-Athens link initiative lawful, IPTO contends

A recent decision by RAE, Greece’s Regulatory Authority for Energy, to award  Greek power grid operator IPTO and its SPV Ariadne Interconnector development control of Crete’s major-scale electricity grid interconnection with Athens does not breach the terms of the wider Euroasia Interconnector, a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete, as the initiative puts to action a road map agreed to between the Greece’s regulatory authority and its Cypriot counterpart, IPTO have contended in comments to energypress.

IPTO and Cyprus’s Euroasia Interconnector consortium have been locked in a dispute for control of the wider project’s Crete-Athens link.

RAE needed to move ahead with its decision as a project delay in the Crete-Athens link, which threatens to create electricity shortages on Crete as of 2020, was confirmed by ACER, Europe’s Agency for the Cooperation of Energy Regulators, the IPTO officials added.

The European Commission’s division for Projects of Common Interest has summoned officials representing all parties involved in the dispute to a Brussels meeting today.

PCI talks for Crete-Athens link rivals at meeting next week

The European Commission’s division for Projects of Common Interest has summoned officials representing all parties involved in a dispute for control of an Crete-Athens electricity grid interconnection plan to a Brussels meeting next week to examine whether this project can retain its PCI status and, if so, under what conditions.

The Crete-Athens link is part of the wider Euroasia Interconnector, a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete.

Greek power grid operator IPTO and Cyprus’s Euroasia Interconnector consortium have been locked in a dispute for control of the wider project’s Crete-Athens link.

The Greek and Cypriot energy ministries and regulatory authorities for energy, as well as Belgian electricity transmission system operator Elia, given an intermediary role by Brussels for the dispute, have been invited to next week’s meeting.

Brussels called next week’s meeting in response to a recent decision by RAE, Greece’s Regulatory Authority for Energy, handing IPTO the task of establishing a special purpose vehicle (SPV) for the development of Crete’s urgently needed interconnection with Athens as a venture in which the operator will hold a 51 percent stake and other shareholders – the Euroasia Interconnector consortium has priority rights – will be offered 39 percent with an option for a further 10 percent.

The RAE initiative does not contravene the terms of a MoU signed by IPTO and the Euroasia Interconnector consortium and provides the consortium with an opportunity to participate in the Crete-Athens interconnection project, Greek energy ministry officials have supported in comments offered to energypress.

Crete faces a looming energy sufficiency threat as of 2020 because an exemption to EU law concerning power station emission limits for local high-polluting units, such as those operating on Crete, ends in December, 2019. A number of power stations on the island will need to be withdrawn.

ACER complaint on Crete-Athens link backs Brussels, project in limbo

Just days after objections were raised by the European Commission, ACER, Europe’s Agency for the Cooperation of Energy Regulators, has also expressed its disapproval of a decision by RAE, Greece’s Regulatory Authority for Energy, giving power grid operator IPTO permission to establish a special purpose vehicle (SPV) for financing and development control of Crete’s urgently needed major-scale electricity grid interconnection with Athens.

ACER, which made clear its discontent – and astonishment – in a letter forwarded to RAE, described the authority’s initiative as a “unilateral move”, energypress sources informed. RAE has yet to respond.

The Crete-Athens interconnection project’s future now appears to be in limbo as this second intervention by a European institution adds further weight to the European Commission’s insinuation that the link would cease to enjoy PCI status and subsequent EU backing if the RAE decision is upheld.

Brussels reacted to the RAE move by noting the authority cannot award Crete’s major-scale interconnection with Athens to any party until the end of the year, the time period given to Euroasia Interconnector – a consortium of Cypriot interests responsible for a wider project planned to link the Greek, Cypriot and Israeli power grids – to decide if it will utilize a right offered for a 39 percent stake, or less, in the venture to develop the Crete-Athens link.

Compatibility concerns have already been raised about four transformers to be installed in the wider Athens area, Crete, Cyprus and Israel for the Euroasia Interconnector.

Also, Cypriot officials, in comments to energypress, cited the emergence of a national issue as Cyprus now finds itself detached from the EU – regarding the project – as a result of the RAE move at a time when the island’s Turkish-occupied northeast is seeking a power grid interconnection with Turkey.

 

 

 

Brussels opposes RAE move giving IPTO Cretan link control

The European Commission has raised objections to last week’s RAE (Regulatory Authority for Energy) decision awarding power grid operator IPTO financing and development control of Crete’s urgently needed major-scale electricity grid interconnection with Athens.

Just days ago, IPTO established a special purpose vehicle (SPV) named Ariadne for the project.

Brussels, in an email forwarded to all parties involved, noted that RAE cannot award Crete’s major-scale link with Athens to any party until the end of the year, the time period given to Euroasia Interconnector – a consortium of Cypriot interests responsible for a wider PCI-status project planned to link the Greek, Cypriot and Israeli power grids – to decide if it will utilize a right offered for a 39 percent stake, or less, in the venture to develop the Crete-Athens link.

The European Commission’s move essentially comes as a warning suggesting the Crete-Athens link will be regarded as a national Greek project rather than a PCI-status European project if RAE’s decision to award IPTO the project remains valid.

The Euroasia Interconnector consortium wants to avoid legal action but cannot exclude such an outcome, sources informed.

IPTO establishes SPV for major-scale Cretan link

Power grid operator IPTO has established a special purpose vehicle (SPV) named Ariadne Interconnection for the financing and development of Crete’s urgently needed major-scale electricity grid interconnection with Athens.

Last week, RAE, the Regulatory Authority for Energy, decided to award IPTO control of the project’s development. The authority could set official terms during the day. RAE has already given IPTO a related road map whose content includes advice on financing through the Europe Connecting Facility (CEF), an EU funding instrument developed specifically to direct investment into European transport, energy and digital infrastructures.

The Ariadne Interconnection SPV, established as a wholly owned subsidiary of IPTO, will begin operating with startup capital of 200 million euros. It will be responsible for the Greek segment of the wider Euroasia Interconnector, a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete.

Euroasia Interconnector, a consortium of Cypriot interests responsible for the wider project, has been given until December 10 to decide if it will utilize a right offered for a 39 percent stake, or less, in the venture to develop the Crete-Athens link.

IPTO and Euroasia Interconnector have been involved in an extended dispute for control of the wider project’s Cretan segment.

IPTO has been given the right to stage a tender offering the venture’s remaining 10 percent. Belgian operator Elia and France’s RTE have both expressed interest.

 

 

RES producers excluded from Cretan major-scale link’s SPV

Certified network operators, primarily, and possibly financial institutions, will be entitled to take on minority roles in a special purpose vehicle (SPV) to soon be established by Greece’s power grid operator IPTO for the development of Crete’s urgently needed major-scale electricity grid interconnection with Athens.

Companies with existing electricity production roles will not be able to participate in the SPV, whose 10 percent will be offered through a tender. This essentially means holders of licenses of major wind energy projects on Crete will not be able to join the SPV.

The Euroasia Interconnector consortium, responsible for the wider Euroasia Interconnector, a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete, will be offered priority rights for a 39 percent minority stake. If this consortium does not exercise this priority right for all or any of the 39 percent it is entitled to, then any leftover portion will be added to the 10 percent stake to be offered to certified network operators and, perhaps, financial institutions.

IPTO is rushing to form the SPV in an effort to counter to Crete’s looming energy sufficiency threat as of 2020 because an exemption to EU law concerning power station emission limits for local high-polluting units, such as those operating on Crete, ends in December, 2019. A number of power stations on the island will need to be withdrawn.

IPTO and Euroasia Interconnector, a consortium of Cypriot interests, have been involved in an extended dispute for control of the wider project’s Cretan segment.

The SPV will initially stand as a wholly-owned IPTO subsidiary and, three months later, by the end of the year, a tender will be staged inviting investor-operators to bid for a minority stake in the venture.

Belgian network operator Elia and France’s RTE have both expressed interest in the major-scale Cretan interconnection project. It remains unclear if they will seek to join the Euroasia Interconnector consortium for part of the SPV’s 39 percent stake or focus on the 10 percent stake.

RAE, the Regulatory Authority for Energy, awarded IPTO the task of swiftly establishing a special purpose vehicle, and its majority 51 percent stake, this week in a decision that runs against a European Commission initiative that gave the Euroasia Interconnector consortium until the end of the year to resolve its dispute with IPTO. The European Commission has yet to offer an official response.

It is not yet clear if the issue will be added to the agenda for upcoming talks between the government and post-bailout inspectors.

IPTO given control and task of forming SPV for urgent Cretan link

RAE, the Regulatory Authority for Energy, has decided to award Greece’s power grid operator IPTO the task of swiftly establishing a special purpose vehicle (SPV) for the development of Crete’s urgently needed major-scale electricity grid interconnection with Athens, sources have informed, confirming a previous energypress report.

Highlighting the level of urgency the matter has acquired, IPTO officials were informed of the decision over the phone and asked to set up an SPV as soon as possible.

Crete faces a looming energy sufficiency threat as of 2020 because an exemption to EU law concerning power station emission limits for local high-polluting units, such as those operating on Crete, ends in December, 2019. A number of power stations on the island will need to be withdrawn.

According to sources, the SPV will initially stand as a wholly-owned IPTO subsidiary while, three months later, by the end of the year, a tender will be staged inviting investor-operators to bid for a minority 49 percent stake in the venture.

The Euroasia Interconnector consortium, responsible for the wider Euroasia Interconnector, a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete, will be offered priority rights for a 39 percent minority stake, as noted in a Memorandum of Cooperation signed by IPTO and the Euroasia Interconnector consortium.

If Euroasia Interconnector, a consortium of Cypriot interests, does not exercise this priority right, then the minority 39 percent stake will be offered to network operators such as Belgium’s Elia or France’s RTE, both of which have expressed interest. They would be expected to also seek acquiring the remaining 10 percent stake.

IPTO and Euroasia Interconnector, a consortium of Cypriot interests, have been involved in an extended dispute for control of the wider project’s Cretan segment.

The RAE decision comes as a counterproposal to a European Commission initiative that gave the Euroasia Interconnector consortium until the end of the year to resolve its dispute with IPTO. But it does give the consortium some time to decide.

 

 

Brussels gives Elia intermediary role for delayed Cretan link

The European Commission has given the Belgian electricity transmission system operator Elia an intermediary role to seek solutions for the development of the major-scale Cretan interconnection, both in terms of the line-up of the consortium to undertake the project and technical details.

Brussels has decided to take initiatives following the breakdown in negotiations this summer between Greece’s power grid operator IPTO and Euroasia Interconnector – a consortium of Cypriot interests awarded the development of the wider PCI-status Euroasia Interconnector to link the Greek, Cypriot and Israeli power grids – for development control of the Athens-Crete segment of the wider link.

Crucial decisions will need to be made in September on the schedule and method of development of the project, crucial for the the country’s grid.

The European Commission has extended a Euroasia Interconnector consortium deadline until the end of the year, for progress solutions, before the Euroasia Interconnector project is officially branded a delayed PCI project. Euroasia Interconnector will need to find solutions over the next four months.

Meanwhile, RAE, Greece’s Regulatory Authority for Energy, facing a looming energy sufficiency threat on Crete as of 2020, is seeking to commission the Crete-Athens link’s development as soon as possible. An exemption to EU law concerning power station emission limits for local high-polluting units, such as those operating on Crete, will cease to apply at the end of 2019 and force the closure of units.

Responding to the summer’s failed talks between IPTO and Euroasia Interconnector, the European Commission appears to have indicated that the Euroasia Interconnector project cannot be broken down into two separate projects – as a PCI-status Greek, Cypriot and Israeli power grid link and a national Athens-Crete link.

Elia and IPTO officials are scheduled to hold a meeting in Athens on September 3. The Elia board is also likely to convene for a discussion on the matter this coming autumn, possibly within the month of September.

RAE, on edge as a result of the energy sufficiency threat on Crete, has indicated it will reach decisions for the Crete-Athens link by September 12.

Also, Greek, Cypriot and Israeli officials are expected to stage a top-level three-way meeting within September to discuss energy matters, especially the Euroasia Interconnector issue, as well as East Med, the natural gas pipeline plan.

RAE to seek consulting firm support for Cretan energy alert

RAE, Greece’s Regulatory Authority for Energy, is preparing to seek consulting firm support to counter a looming energy sufficiency threat on Crete as of 2020 prompted by the end, in December, 2019, of an exemption to EU law concerning power station emission limits for local high-polluting units, such as those operating on Crete. A number of power stations on the island will need to be withdrawn.

Delays in a plan for the development of Crete’s major-scale grid interconnection, to link the island with Athens, have raised sufficiency concerns.

Greece’s power grid operator IPTO has been at odds with Euroasia Interconnector – a consortium of Cypriot interests awarded the development of the wider PCI-status Euroasia Interconnector to link the Greek, Cypriot and Israeli power grids – for control of the Athens-Crete link’s development.

RAE has called on the Greek government to seek exemptions from the European Commission for some of the upcoming power station closures on Crete. It remains unknown if such a Greek request will be endorsed in Brussels.

Also, authorities are examining the prospect of allowing energy firm Heron to transfer an existing power station in Viotia, slightly northwest of Athens, to Crete. Questions have been raised as to this option’s cost of production level.

A smaller-scale Cretan interconnection is planned to link the island with the Peloponnese.

Slow Athens-Crete link action raising island’s energy fears

Crete’s major-scale electricity grid interconnection with Athens is a PCI-status project as it represents a part of the wider Euroasia Interconnector to link the Greek, Cypriot and Israeli power grids, meaning EU terms and conditions will need to be observed for the Crete-Athens link, the European Commission informed participants at a related meeting in Brussels earlier this week.

Greek and Cypriot regulatory authorities for energy, the European Commission, and the Euroasia Interconnector consortium, responsible for the wider Euroasia Interconnector project, took part in the meeting.

Officials of Greece’s power grid operator IPTO, which is at odds with the Euroasia Interconnector consortium for control of the Athens-Crete link’s development, skipped the meeting claiming there was no chance of any agreement on the issue with Euroasia Interconnector, a consortium of Cypriot interests.

The Athens-Crete interconnection has fallen behind schedule. Slow-moving bureaucratic procedures in Brussels have intensified Greek concerns of a serious power sufficiency problem on Crete as of 2020. An exemption to EU law concerning power station emission limits for local high-polluting units, such as those operating on Crete, is set to expire in December, 2019.

The Athens-Crete link’s PCI status promises to offer the project fast-track licensing advantages, reduce the risk of legal challenges by rival companies, and ensure transparent procedures.

RAE, Greece’s Regulatory Authority for Energy, will most likely award the Athens-Crete link’s development to IPTO, but, even so, the power grid operator will need to stage a tender and include other companies. Belgian power grid operator Elia, currently examining details of the wider Greek-Cypriot-Israeli link, is believed to be interested in participating in the Athens-Crete project.

Valuable time will have been lost by next month, when developments are expected, which will increase the urgency of Crete’s looming energy sufficiency problem.

 

 

IPTO to skip Brussels meeting on Euroasia Crete link dispute

Greece’s power grid operator IPTO has chosen not to be represented at a meeting scheduled for today in Brussels as an effort to resolve the operator’s dispute with the Euroasia Interconnector consortium for control of the development of Crete’s major-scale electricity grid interconnection with Athens.

The Euroasia Interconnector consortium, responsible for the wider Euroasia Interconnector, a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete, has insisted on also controlling the project’s Cretan segment.

The adamant stance of Euroasia Interconnector, a consortium of Cypriot interests, makes it pointless for IPTO to be represented at today’s meeting, IPTO officials have concluded, according to enegypress sources.

The Greek and Cypriot regulatory authorities for energy and European Commission officials are all expected be participate at today’s meeting.

Over the past couple of months, the Euroasia consortium has claimed Belgian power grid operator Elia would finance its stake in the Euroasia project. This has yet to occur.

According to sources, Elia intends to conduct a feasibility study to decide if its involvement in the investment plan for the Greek-Cypriot-Israeli interconnection project would be viable.

Sources have not ruled out a meeting between IPTO and Elia officials during the current month for investment plan talks.

At this stage, RAE, Greece’s Regulatory Authority for Energy, appears likely to award IPTO the Crete-Athens segment of the wider project by early September.

Cretan energy alert the focus, new IPTO-Euroasia meeting

The energy ministry and RAE, Greece’s Regulatory Authority for Energy, are currently focused on delivering measures to counter Crete’s energy sufficiency alert between 2020 and 2022, when the island’s major-scale electricity grid interconnection with Athens is planned to be developed.

At the same time, the power grid operator IPTO and the Euroasia Interconnector consortium – responsible for the wider Euroasia Interconnector, a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete – will make yet another attempt to reach an agreement on the Cretan link at a meeting in Brussels on Monday.

The two sides have vied to secure control of the large-scale Cretan link with Athens. This dispute has delayed the project’s development. A smaller-scale Cretan link is planned to link the island with the Peloponnese.

Pundits see little chance of a compromise between IPTO and the Euroasia Interconnector consortium at Monday’s meeting. If so, RAE may award the Cretan major-scale interconnection’s development to IPTO, with conditions attached, next week.  In this case, IPTO would seek minority-stake partners for the establishment of a Special Purpose Vehicle (SPV) to take on the project.

Crete faces a serious energy sufficiency threat as of 2020 as an exemption to EU law concerning power station emission limits for local high-polluting units, such as those operating on Crete, is set to expire in December, 2019. Completion of the island’s major-scale link stands no chance of being completed by 2020, authorities have warned.

In their attempt to resolve the issue, Greek officials are expected to forward a request to the European Commission for some of the main power utility PPC’s diesel-fueled power stations on Crete to be temporarily exempted from the EU’s strict anti-pollution directives, sources informed.

Cretan power stations currently generating 601 MW of the island’s 813 MW in electricity production will need to stop operating in 2020, according to the emission-limit rule imposed by Brussels.

To help counter the looming issue, RAE also appears to be moving ahead with procedures for the transfer to Crete of Heron I, a small 150-MW gas-fueled unit currently operated by the energy firm Heron in Thebes, slightly northwest of Athens. Heron I runs on two types of fuel, natural gas as the main fuel and diesel as a backup fuel. The unit’s transfer to Crete, sought by Heron, would help the Cretan energy sufficiency problem but not fully resolve it.

In addition, the smaller-scale Cretan link, planned to link the island with the Peloponnese via a submarine power cable whose capacity could be anywhere between 150 MW and 180 MW, will offer further support.

RAE could also examine staging RES auctions for the installation of renewable energy units on Crete, such as solar energy facilities, which can be swiftly set up, sources added.

 

 

 

RAE set to award IPTO crucial Crete-Athens interconnection

RAE, Greece’s Regulatory Authority for Energy, appears to have reached a decision to award the Cretan major interconnection project’s development to the power grid operator IPTO with conditions attached.

IPTO and the Euroasia Interconnector consortium, responsible for the wider Euroasia Interconnector, a PCI-status project planned to link the Greek, Cypriot and Israeli power grids via Crete, have fought to secure control of the large-scale Cretan segment, to link the island with Athens. This dispute has led to delays.

RAE may announce its decision within the next few days and, in doing so, attribute the need to push ahead with the major-scale Cretan link to the island’s looming energy sufficiency threat in 2020, energypress sources informed. An exemption to EU law concerning power station emission limits for local high-polluting units, such as those operating on Crete, is set to expire in December, 2019.

According to sources, RAE officials and the European Commission have been in constant touch in recent times for a solution to the local segment of the PCI-classified Greece-Cyprus-Israel grid interconnection.

The European Commission appears to have insisted on a last-ditch effort that may lead to an agreement between IPTO and the Euroasia Interconnector, a consortium of Cypriot interests. However, it is feared course of action could take up valuable time. Crete’s energy sufficiency alert is expected to be given precedence.

Euroasia seeks restart in Cretan link talks, IPTO remains firm

The Euroasia Interconnector consortium has requested a restart of failed negotiations concerning the development of Crete’s major interconnection planned to link the island’s power grid with Athens, sources have informed.

Negotiations between the Euroasia Interconnector and IPTO, Greece’s power grid operator, both seeking control of the Cretan major interconnection project’s development, fell through less than a fortnight ago, and, in response, the European Commission gave RAE, Greece’s Regulatory Authority for Energy, two months to decide on how the Cretan segment of the wider Euroasia Interconnector project will be developed and by whom.

The wider Euroasia Interconnector project, a PCI-status project awarded to the Euroasia Interconnector consortium, is planned to link the Greek, Cypriot and Israeli power grids via Crete.

In the ordeal’s latest development, the Euroasia Interconnector consortium has just forwarded a letter to all parties involved – the European Commission, ACER (Agency for the Cooperation of Energy Regulators), RAE and its Cypriot counterpart RAEK, as well as IPTO – seeking fresh talks following the recent breakdown.

The Euroasia Interconnector consortium, in its letter, appears willing to accept a minority role for the Cretan segment of the wider interconnection project but insists on having a say in interoperability matters and project specifications.

In the letter, the Euroasia Interconnector consortium also doubts a recent ACER update  contending the Greek-Cypriot-Israeli interconnection has fallen well behind schedule and, furthermore, questions whether RAE has the authority to become involved in decisions concerning the project’s Cretan interconnection segment.

The Euroasia Interconnector consortium, in the letter, insists on the staging of a tender for all the project’s converters. This is one of the contentious issues that has troubled the consortium’s negotiations with IPTO as the power grid operator views the stance as pressure by Euroasia Interconnector for control over technical specifications and tenders concerning the project.

IPTO sees no reason to reconsider or change its course as a result of the letter, sources noted. Negotiations between the two sides broke down at a meeting on July 12.

Prior to the collapse, IPTO proposed the establishment of a special purpose vehicle (SPV), which the Greek power grid operator would control with a majority stake, to finance, develop and operate the Cretan interconnection. Regulators and the European Commission viewed the IPTO proposal as the only basis for negotiations before the breakdown.

 

Euroasia consortium doubts ACER report, insists on Crete link control

The Euroasia Interconnector consortium awarded the PCI-status Euroasia Interconnector planned to link the Greek, Cypriot and Israeli power grids, has strongly doubted an ACER (Agency for the Cooperation of Energy Regulators) report noting the project’s development has fallen two years behind schedule and insists it should be given control of the major Cretan interconnection, part of the wider Mediterranean project.

The Cypriot regulatory authority for energy appears to be lending its support to the Euroasia Interconnector consortium over the issue.

The latest developments could affect hopes of progress following a July 12 meeting when RAE, Greece’s Regulatory Authority for Energy, was tasked, by the European Commission, to decide within two months on how the Cretan major interconnection segment of the Euroasia Interconnector project will be developed and by whom.

The Euroasia Interconnector consortium and IPTO, Greece’s power grid operator, have been at odds in their efforts to secure control of the development of the Cretan major interconnection planned to link the island’s grid with Athens.

The ACER report is intended to serve as a key guide for RAE’s decision-making in the dispute.

Recent talks between RAE and IPTO suggested that the Greek power grid operator would be awarded the contract for the major-Cretan interconnection as part of the Euroasia Interconnector. However, initial support by the European Commission for such a course of action now seems indefinite.

The Euroasia Interconnector consortium continues to believe it should be given the upper hand for the Cretan major interconnection’s development. Highlighting this stance, the consortium has organized a public consultation event for today at seaside Megara, on the western outskirts of Athens, for talks with local authorities and residents on project issues.

The major Cretan interconnection’s submarine power cable is planned to run from Crete to the Megara region before continuing as an overland connection to a central grid facility in Athens.

 

 

 

 

IPTO preparing to take on major Cretan link with strict terms

Power grid operator IPTO appears to have gained a clear advantage over the Euroasia Interconnector consortium for the construction of Crete’s major interconnection, planned to link the island’s grid with Athens, following a failed effort by the two sides to form a partnership for the project.

Awarding the submarine project’s development to IPTO is one of a number of options available to RAE, Greece’s Regulatory Authority for Energy.

RAE is currently engaged in constant talks with the European Commission and IPTO for clarification of terms and obligations being prepared to ensure that the project’s schedule is maintained.

Officials are currently working on defining situations that will constitute  unexpected developments and determining the maximum level of fines for  project delays.

The European Commission’s role in the Cretan major interconnection is crucial as, even with IPTO at the helm of the project’s development, the wider Euroasia Interconnector project – headed by the Euroasia Interconnector consortium and planned to link the Greek, Cypriot and Israeli power grids via Crete – has been classified an EU Project of Common Interest (PCI).

Preservation of the PCI status will enable the existing WACC (Weighted Average Cost of Capital) terms to be maintained, which would prevent the need for new negotiations.

A completion date of 2022 instead of 2023, as was originally planned, could be agreed to for Crete’s major interconnection.

Fears of power supply shortages on Crete in the summer of 2020, stemming from an EU-related commitment to close down older power stations operating on the island, have not subsided.

RAE is pressuring IPTO to complete and launch Crete’s small-scale interconnection, to link the island with the Peloponnese, by mid-2020 to prevent power shortages. But the authority believes 2021 is a more likely delivery date.

 

 

 

Chances of an IPTO-Euroasia agreement for Crete link fading

A deadline set by RAE, Greece’s Regulatory Authority for Energy, for an agreement between IPTO, Greece’s power grid operator, and Euroasia Interconnector, both vying to secure control of the construction of Crete’s major interconnection, linking the island’s grid with Athens, has failed to bring the two sides closer together, energypress sources have informed.

RAE has pushed for IPTO and Euroasia Interconnector to establish a joint venture for the interconnection project based on the terms of a MoU signed by the two sides last October. The two sides are expected to go into a RAE meeting today without any signs of convergence.

The Euroasia Interconnector consortium, which insists it was formed to link the Greek, Cypriot and Israeli power grids via a Crete interconnection as an entire project, does not agree on the establishment of a special purpose vehicle (SPV) with IPTO for the project. Regulators and the European Commission see this as the only basis for negotiations leading to an agreement.

However, not all hope of an agreement has vanished. Today’s meeting could offer the two sides a final opportunity for an agreement. Klaus-Dieter Borchardt, Director of the European Commission’s Directorate-General for Energy, who was in Athens just days ago to inspect on energy-sector reforms and EU energy policy commitments leading to the European energy market’s unification, showed particular interest in the dispute and vowed to support efforts for a solution.

The Euroasia Interconnector project linking the Greek, Cypriot and Israeli power grids via Crete has been classified as an EU Project of Common Interest (PCI).

If no agreement is reached today, then RAE is expected to take the matter into its own hands, with European Commission support. The authority could stage a tender for the construction of Crete’s major interconnection, launch a tender for its financing, or award the project’s construction to IPTO, with a specific schedule intact.

The announcement of a tender would come as an unfavorable development for both IPTO and Euroasia Interconnector as more investors would probably seek involvement in the project, promising regulated and guaranteed earnings.

The MoU signed by IPTO and Euroasia Interconnector last October envisions a stake of at least 51 percent for IPTO in the project, 39 percent for Euroasia Interconnector, and 10 percent for private-sector investors. It also foresees the establishment of a special purpose vehicle (SPV) by the two firms to take on the project’s financing and development.

Euroasia Interconnector appears to be demanding equal powers for all technical matters and sub-contracts concerning the project.

 

 

IPTO awaiting Euroasia response for Crete interconnection

IPTO, Greece’s power grid operator, will today inaugurate an interconnection project linking the island Mykonos with the mainland grid, in what is expected to be a festive occasion involving the operator’s top officials. However, the true concerns of these officials will be focused on an anticipated response from Euroasia Interconnector, a prospective partner in the development of Crete’s major interconnection, to link the island’s grid with Athens.

The two sides are vying to secure control of the Crete project’s development.

The Euroasia Interconnector consortium, which has insisted that it was formed to develop the Greek, Cypriot and Israeli power grids via a Crete interconnection as an entire project, is expected to deliver a response today to an IPTO proposal for the establishment of a special purpose vehicle (SPV) by the two firms.

This SPV, planned to take on the project’s financing and development, would be based on terms of a MoU signed by the two sides last October, seen as the only way of resolving the dispute.

At their most recent meeting, hosted by RAE, the Regulatory Authority for Energy, IPTO and Euroasia Interconnector were given until July 12 to reach an agreement for the SPV’s establishment.

Besides the prospective stakes and roles that could be assumed by IPTO and Euroasia Interconnector for Crete’s major interconnection, the financial commitments and capabilities of the respective sides could also prove to be a stumbling block.

According to sources, IPTO has already declared it is ready to provide guarantees concerning its ability to participate in the SPV’s initial equity line-up, while, from the other end, Euroasia Interconnector has not made such a commitment, despite persistent questioning from IPTO and RAE.

 

IPTO, Euroasia under tremendous pressure for Crete interconnection deal

IPTO, Greece’s power grid operator, and Euroasia Interconnector, both vying to secure control of the construction of Crete’s major interconnection, linking the island’s grid with Athens, will go into a meeting today, organized by RAE, Greece’s Regulatory Authority for Energy, under great pressure to reach an agreement. The two sides stand far apart at present.

Besides IPTO and Euroasia Interconnector, tomorrow’s meeting will also involve officials representing RAE, its Cypriot counterpart, the European Commission and ACER, the European Agency for the Cooperation of Energy Regulators.

A preliminary meeting staged yesterday made clear that the establishment of a partnership between IPTO and Euroasia Interconnector, based on the terms of a MoU signed by the two sides last October, is the only way of resolving the dispute.

One authority involved in the matter noted that the two sides will be given a limited amount of time, without the possibility of any extensions, to establish a partnership.

If this is not achieved, then RAE, fully supported by the European Commission, could either stage a tender offering the project’s development, proceed with a competitive procedure concerning its financing, or offer IPTO the project’s development, based on a specific schedule.

The MoU signed by IPTO and Euroasia Interconnector last October envisions a stake of at least 51 percent for IPTO in the project, 39 percent for Euroasia Interconnector, and 10 percent for private-sector investors. It also foresees the establishment of a special purpose vehicle (SPV) by the two firms to take on the project’s financing and development.

Euroasia Interconnector appears to be demanding equal powers for all technical matters and sub-contracts concerning the project.

The prospect of IPTO being responsible for sub-stations and the cable on the Greek side was discussed at yesterday’s preliminary meeting. In this case, Euroasia Interconnector will be exclusively responsible for technical matters concerning other segments of the project.

If such an arrangement is not agreed to, then the project’s procedures will need to recommence from scratch. Both sides would lose in this case as any new tender would attract additional investors for involvement in a project promising regulated and guaranted earnings.

The Euroasia Interconnector consortium insists it was formed to link the Greek, Cypriot and Israeli power grids via a Crete interconnection as an entire project, adding it has already been classified as an EU Project of Common Interest (PCI).

 

IPTO, Euroasia meet seeking consensus on Crete interconnection

IPTO, Greece’s power grid operator, and Euroasia Interconnector, both vying to secure control of the construction of Crete’s major interconnection, linking the island’s grid with Athens, held an initial meeting yesterday, six days into a ten-day deadline set by the Greek and Cypriot regulatory authorities for energy for an agreement.

The Greek and Cypriot regulatory authorities are being pressured by the European Commission to push for a solution.

According to energypress sources, IPTO took the initiative and extended an invitation to Euroasia Interconnector, which agreed to a first round of talks. Even so, no progress appears to have been made at this first session. Both sides are believed to have stuck to their initial positions.

At yesterday’s meeting, IPTO presented Euroasia Interconnector a shareholders agreement based entirely on the details included in a Memorandum of Understanding (MoU) signed by the two sides last October. It envisions a stake of at least 51 percent for IPTO in the project, 39 percent for Euroasia Interconnector, and 10 percent for private-sector investors. Euroasia Interconnector pledged it would offer a response to this plan within the next few days.

The MoU foresees the establishment of a special purpose vehicle (SPV) by IPTO and Euroasia Interconnector for the project’s financing and development. This appears to be a pivotal detail keeping the two sides apart.

Euroasia Interconnector contends that it is responsible for the project’s construction and has noted the SPV should only concern financial aspects.

The Euroasia Interconnector consortium insists it was formed to link the Greek, Cypriot and Israeli power grids via a Crete interconnection as an entire project, adding it has already been classified as an EU Project of Common Interest (PCI). As a result, Euroasia not only holds priority rights over the Cretan section of the overall interconnection project but has an overall responsibility as well, Euroasia Interconnector contends. Euroasia has noted it only recognizes ACER, the European Agency for the Cooperation of Energy Regulators, as a supervisory body.

Euroasia Interconnector has already reached a partnership agreement with Belgium’s ELIA and contends it can fully cover the project’s entire financing needs, a claim that remains unsubstantiated. The credit ability of Euroasia Interconnector represents a key factor in any future agreement for collaboration between IPTO and Euroasia Interconnector. IPTO has already made significant progress in this faculty following the recent signing of a 200 million-euro loan agreement, at a favorable interest rate, with the Bank of China and ICBC.

At a meeting last week, European Commission officials clearly favored the Greek and Cypriot regulatory authorities as the two bodies responsible for handling the dispute. This means that commitments based on decisions already made by the two regulatory authorities should remain valid.

On the one hand, Euroasia Interconnector has been granted a license for the overall project under the condition that the Crete-Athens interconnection will be co-developed with IPTO, while, on the other, IPTO has already included the Crete-Athens interconnection into its ten-year plan under the condition it collaborates with Euroasia Interconnector.

If the dispute is not settled soon, both sides could loose their existing rights to the project, which would require a restart of the entire procedure, an authority told energypress.

 

 

 

IPTO, Euroasia pressured to decide on Crete interconnection

IPTO, Greece’s power grid operator, and Euroasia Interconnector have been given a ten-day deadline by the Greek and Cypriot regulatory authorities for energy – both pressured by the European Commission – to reach an agreement for the development of Crete’s major grid interconnection.

The two sides are vying to secure control of the project’s construction.

IPTO has offered a convincing presentation concerning preliminary efforts for the project’s financing and technical studies, energypress sources informed.

The operator has an advantage provided by the content included in a Memorandum of Understanding (MoU) signed by the two sides last October, envisioning a stake of at least 51 percent for IPTO in the project, 39 percent for Euroasia Interconnector, and 10 percent for private-sector investors, possibly investors developing major renewable energy projects on Crete.

The MoU foresees the establishment of a special purpose vehicle (SPV) by IPTO and Euroasia Interconnector for the project’s financing and development. This appears to be a pivotal detail causing disagreements between the two sides.

Euroasia Interconnector contends that it is responsible for the project’s construction and has noted the SPV should only concern financial aspects.

The Euroasia Interconnector consortium was formed to develop links between the Greek, Cypriot and Israeli power grids via a Crete interconnection.

The European Commission has made efforts to support collaboration between the IPTO and Euroasia Interconnector for joint development of the project.