EuroAsia Interconnector takes a step forwards

Greece’s independent power transmission operator (IPTO) and EuroAsia Interconnector have concluded a strategic agreement allowing the former to acquire 25 per cent of the EuroAsia share capital.

“The entry of the operator with 25 per cent in the emblematic project of the interconnection of Cyprus and Israel with Europe via Greece safeguards technical and financing adequacy of the project and lays the groundwork for its timely completion by 2027,” the energy ministries of Cyprus and Greece said.

Ministers George Papanastasiou and Theodoros Skylakakis welcomed the agreement as a significant step towards the completion of the project, which is included in the EU’s projects of common interest (PCI).

Since 2021, IPTO has been operating as technical advisor to EuroAsia, contributing to the design and financing maturity of the project, which has secured financing worth €567 million from by the Connecting Europe facility.

The entry of IPTO in EuroAsia Interconnector’s capital meets the European Commission directorate for energy and equity participation of a transmission system operator (TSO) as guarantor of electricity supply security of the three Eastern Mediterranean countries, the two ministries added.

IPTO equity participation will be completed following a due diligence soon, and is expected to expedite the signing of contracts with the companies selected following a tender process, to construct the sub-sea cables and converter stations in Crete and Cyprus.

The completion of the project will mark the interconnection of Cyprus, the last EU member-state that is not interconnected with the electricity grids of Europe. It is noted that Israel, which is also not interconnected with its neighbours, will enhance the security of its energy supply, acquiring the capacity to further increase the share of renewables in its energy mix.

Papanastasiou said this development marks a landmark towards the completion of the strategic project of the interconnection of Greece, Cyprus and Israel, and further strengthens cooperation between the three countries while lifting the island’s energy isolation.

Skylakakis said the agreement for the participation of IPTO in the EuroAsia’s share capital, which is expected to be completed in the coming months, constitutes a positive landmark for the deepening of strategic ties between Greece, Cyprus and Israel.

President and Managing Director of IPTO Manos Manousakis said the agreement marks the completion of lengthy negotiations and lies within the IPTO strategy to convert Greece into an energy hub of southeastern Europe.

Nasos Ktorides, CEO of EuroAsia said he was pleased the Greek IPTO joined the EuroAsia Interconnector which will end Cyprus’ energy isolation and substantially contribute to the achievement of its energy targets.

The EuroAsia Interconnector is a European project of common interest (PCI) labelled as an EU ‘electricity highway’ connecting the national electricity grids of Israel, Cyprus and Greece through a 1,208 km subsea HVDC cable, considered to be the longest in the world.