Greek and Cypriot energy regulators have approved €550 million in recoverable revenues for IPTO, Greece’s power grid operator, for 2024-2025, clearing a major regulatory obstacle for the Greece-Cyprus electrical interconnection project.
This decision paves the way for IPTO to issue a full notice to proceed to cable manufacturer Nexans, effectively resolving an impasse that had stalled the project.
The €550 million will be recovered over 35 years, with Cyprus covering 63% of expenses and Greece 37%.
Under the agreement, Cyprus will pay €125 million by 2029, with the remainder to be collected gradually after the interconnection becomes operational. Greece’s expense recovery is set to begin in 2025.
With the regulatory framework and economic viability now established, attention has shifted to attracting investors for the project, which has already garnered significant international interest.
The United Arab Emirates, through energy firm TAQA, has expressed interest following a memorandum of understanding (MoU) signed between IPTO and Cyprus last year.
Discussions are underway for the creation of a joint Cypriot-Emirati company to participate in the interconnection’s share capital.
France has also shown keen interest, with infrastructure specialist Meridiam signing an MoU with IPTO in June regarding potential entry into the project’s shareholding.
Meridiam, which manages over $22 billion in assets across 56 countries, is already involved in the NeuConnect project linking the UK and Germany.
The US state fund DFC has indicated its intent to acquire a 10% stake in the project, while Qatar has also been mentioned as a potential investor by Cypriot President Nikos Christodoulides.
IPTO is expected to launch an open call for investors in the coming months, with the project’s economic and geostrategic importance potentially attracting additional interest.
(information from Capital.gr/Harris Floudopoulos)
