Saudi Greek Interconnection study based on Egypt route

A feasibility study to be conducted by Saudi Greek Interconnection, an SPV established by Greek power grid operator IPTO and Saudi Arabia’s National Grid for a prospective electricity interconnection linking Greece and Saudi Arabia, is widely expected to be based on a longer route via Egyptian territory, bypassing Israel, as a result of frosty relations between Saudi Arabia and Israel that have not shown any signs of improvement for the foreseeable future.

Though a joint announcement released by IPTO and National Grid earlier this week makes no reference to the project’s route or transit countries to be included in the feasibility study, Israel’s exclusion from the plan has become a common secret.

Egypt’s inclusion as an alternative route to Israel makes the project more complex, but it remains feasible from a technical point of view, experts ascertain.

The project’s feasibility studies, expected to be completed in the first quarter of 2025, will be based on HVDC technology, considered ideal for long-distance grid interconnections.

HVDC technology, ensuring consistent power, voltage, and frequency, while enhancing grid stability efficiency, is being used for the Athens-Crete grid link.

It is still too early to make any estimates on the cost of the Saudi Greek Interconnection as the project’s capacity has yet to be specified.

This will depend on the volume of sales agreements Saudi Arabia can establish with end buyers in Europe for the country’s production of renewable energy. Saudi Arabia’s sunny weather conditions all year round promise great solar energy production potential at relatively low prices.

PPAs at levels of roughly 10.4 dollars per MWh, unheard of in the international solar energy market, were signed in Saudi Arabia just months ago, according to recent reports.

Saudi Arabia aims to establish itself as a major exporter of low-cost solar energy to Europe and achieve net zero emissions by 2060.

Manos Manousakis (IPTO): Τime to open debate on the creation of a pan-European HVDC interconnection network

Key speaking points of the Chairman and CEO of Greek power grid operator IPTO at the ENTSO-E event on the Offshore Network Development Plan in Brussels

24/1/2024

“We need a pan-European network of high-voltage direct current (HVDC) electrical interconnections to seamlessly integrate substantial volumes of renewable energy into our power systems. This is essential for harnessing the abundant wind potential in Europe’s sea basins. We need to begin this discussion now if we want to achieve our 2050 climate targets and attain net-zero emissions”. This was stated by the Chairman and CEO of IPTO (Independent Power Transmission Operator) Manos Manousakis during a special event organized by the European Network of Transmission System Operators (ENTSO-E) to unveil the Offshore Network Development Plan, on January 23 in Brussels. High level speakers at the event included Energy Commissioner Kadri Simson and Tinne van der Straeten, the Minister of Energy of Belgium, the country holding the rotating EU Presidency for this semester.

“The time has come for vertical and horizontal electricity transmission corridors to take center stage in the public debate as they are a prerequisite for greening the energy mix, enhancing energy independence and improving the reliability of Europe’s electricity supply,” said Mr. Manousakis, noting that HVDC technology is essential due to its significant technical advantages, ensuring consistent power, voltage, and frequency, while enhancing grid stability and efficiency of the grid.

“In order to fully exploit the huge wind potential of Greece, the South of France, the North Sea, we need this infrastructure. And we need Transmission System Operators to communicate to governments the necessity of cooperation at European level to implement this infrastructure. It is time to plan the projects of the electricity corridors and the necessary interconnections between offshore wind farms in the framework of a holistic approach, considering their viability and cost-benefit ratio from a European perspective as Projects of Common European Interest, rather than bilateral projects between two states. We need to create solutions that support this policy” he said.  “Just as in Greece it is necessary to have vertical energy transmission axes from north to south, the same is required in Europe.” He cited as an example the Green Aegean Interconnector project to transfer the surplus wind potential of the Aegean Sea to the industrial centres of Central Europe.

The National Energy and Climate Plan of Greece foresees production capacity from offshore wind at 2 GW by the end of the decade and 17.3 GW by 2050. “However, our technical wind potential is much greater, and we can increase our ambition if we work together. That is why we need an integrated strategy that provides clear guidelines and appropriate tools for the planning and implementation of Europe’s electricity corridors,” concluded  IPTO’s Chairman.

IPTO pitches Green Aegean to new German ambassador

Greek power grid operator IPTO’s chief executive officer Manos Manousakis has held a meeting with Germany’s newly appointed ambassador to Greece, Andreas Kindl, to promote the operator’s proposal for a Green Aegean grid interconnection plan, envisaged to run from Greece to Germany’s south.

To date, German officials have remained reserved, as was highlighted by a meeting last November between Greek Prime Minister Kyriakos Mitsotakis and German Chancellor Olaf Scholz. The Greek leader made note of the Green Aegean project, describing it as a step towards independence from Russian energy, without reciprocation.

The Chancellor’s lack of expression on the project does not necessarily indicate that Germany is opposed to the Greek plan. It promises to be mutually beneficial for both countries. Germany encounters bigger energy needs during winter while Greece must deal with greater energy demand in the summer.

The meeting between Manousakis, IPTO’s CEO, with Germany’s new ambassador to Greece, could end up generating momentum for further talks between officials and convergence.

IPTO has expressed preference for a HVDC-technology subsea route for the Green Aegean grid interconnection that would pass through the Adriatic Sea to Slovenia, followed by an overland route to Austria and Germany’s south.

IPTO recently held related talks with TenneT, Germany’s biggest power grid operator, and Slovenian operator ELES.

 

IPTO submits Green Aegean proposal to ENTSO-E

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

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

IPTO prefers a HVDC-technology subsea route for the Green Aegean grid interconnection that would pass through the Adriatic Sea to Slovenia, followed by an overland route to Austria and Germany’s south.

IPTO recently held related talks with TenneT, Germany’s biggest power grid operator, and Slovenian operator ELES.

TenneT has expressed strong interest in the Green Aegean grid interconnection and the prospect of collaborating with IPTO on the project’s development for a link with Germany’s grid in the southern part of the country.

HVDC-technology enables transmission of large quantities of electricity over long distances via submarine cables, as well as fast and accurate control of power flow, enhancing grid stability.

 

IPTO favors subsea route, HVDC for Green Aegean

Power grid operator IPTO has settled on proposing a subsea route for the Green Aegean grid interconnection, a pivotal project envisaged to run from Greece to Germany’s south, which, according to the operator’s preferred route, would pass through the Adriatic Sea to Slovenia, followed by an overland route to Austria and Germany’s south.

The operator has abandoned an alternative overland western Balkans route for the project, through Montenegro, Croatia and Slovenia, over cost-related concerns. This route would entail upgrading pylons at outdated networks in these countries, making the venture financially unfeasible.

As a result, IPTO is now holding talks with TenneT, Germany’s biggest power grid operator, for its proposed underwater route, a more independent passage that would not require the usage of networks at any neighboring countries and be equipped with HVDC technology.

If IPTO’s envisaged route is finally adopted, then Prime Minister Kyriakos Mitsotakis’ proposal for the establishment of a European Grid Facility to fund upgrades of outdated Balkan networks and, subsequently, enable a Green Aegean crossing, will no longer apply. Mitsotakis presented his proposal during an EU summit last March.

Usage of HVDC technology for such projects is crucial as it enables transmission of large quantities of electricity over long distances via submarine cables; fast and accurate control of power flow, enhancing grid stability; and the interconnection of incompatible networks.