TSOs of countries that have expressed an interest to participate in Green Aegean, an electrical grid interconnection project envisaged to stretch from Greece to Germany’s south, have begun working on non-disclosure agreements ahead of respective cost-benefit analyses.

According to an initial estimate, the grid interconnection project, to cover roughly 1,400 kilometers, was budgeted at between 7 and 8 billion euros, but the figure is likely to change as more detailed studies are completed.

TSOs of Greece, Germany, Slovenia, Austria and Croatia, a recent addition to the group of countries interested in co-developing the project, are expected to soon commence work on detailed technical and cost-benefit studies.

The studies will include details such as the type of cable technology and converter stations preferred, as well as the cost of each segment.

Greek power grid operator IPTO and its counterparts representing the participating countries – Slovenia’s ELES, Austria’s APG, Croatia’s HOPS, and TenneT, a Dutch TSO operating in a large part of Germany – are expected to each conduct separate preliminary studies before deciding on a final master plan covering the entire grid interconnection project.

The project’s cost estimation, a crucial stage, will be complex as each of these countries have different energy mixes.

IPTO’s chief executive Manos Manousakis held talks Tuesday in Brussels with TenneT’s CEO Mannon van Beek, on the sidelines of a meeting held by ENTSO-E, the European Network of Transmission System Operators for Electricity, for an Offshore Network Development Plan.

Germany has yet to make clear its intentions on the Green Aegean project. The project’s sustainability will be a crucial aspect in the country’s decision. Greek solar energy exports will need to represent a low-cost alternative compared to solar energy production in Germany’s south, the country’s sunniest region.

At present, Greek solar energy production costs between 35 and 40 euros per MWh, compared to roughly 50 euros per MWh in Germany’s south, a price gap resulting from Greece’s sunnier weather and, by extension, lower cost of production.