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.