Greek IPTO acquires 25% of EuroAsia Interconnector’s share capital

Greek Independent Power Transmission Operator (IPTO) and EuroAsia Interconnector, concluded on strategic agreement on 28 June allowing the IPTO to acquire 25% of the EuroAsia’s share capital.

“The entry of the operator with 25% 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”, a joint press release issued by the Ministries of Energy of Cyprus and Greece said.

Ministers of Energy of Cyprus and Greece, George Papanastasiou and Theodoros Skylakakis welcomed the agreement as significant towards the completion of the project, which is included in the EU’ Projects of Common Interest (PCI).

According to the press release, 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 by the Connecting Europe Facility.

The entry of IPTO in EuroAsia Interconnector’s capital meets the European Commission Directorate General for Energy for the equity participation of a Transmission System Operator (TSO) as a guarantor of the electricity supply security of the three countries of the Eastern Mediterranean, the press release added.

According to the press release, IPTO equity participation to be completed following a due diligence soon, 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, the press release said. 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.

In a statement, Cypriot Energy Minister George Papanastasiou inter alia stated that this development marks a landmark towards the completion of this strategic project of the interconnection of Greece, Cyprus and Israel, that further strengthen the cooperation between the three countries while lifting Cyprus' continuing energy isolation.

On his part, Greek Minister for the Environment and Energy, Theodoros 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, constitute a very positive landmark for the deepening of strategic ties between Greece, Cyprus and Israel.

Alexandra Sdoukou, Deputy Minister for the Environment and Energy welcomed the “very significant agreement that unlocks the implementation of a project of strategic importance for the South Eastern Mediterranean and the EU as a whole.”

The 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 to an energy hub of the South Eastern Europe.

Nasos Ktorides, CEO of EuroAsia said he is particularly happy that Greek IPTO joins us in EuroAsia Interconnector the completion of which will end Cyprus’ energy isolation and will 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 as the longest in the world.

(Source: CNA)