The European Investment Bank (EIB) and the Independent Power Transmission Operation (IPTO) signed a EUR 178 million long-term loan to finance the construction of the first power interconnector between mainland Greece and the country’s largest island Crete.
The new twenty year EIB financing will support 50% of the costs of the new electricity link. The Crete interconnector, comprising two alternating current (AC) 150kV submarine cables, will be built between the Malea peninsula in the Peloponnese and Kissamos Bay in Crete. The new cable, expected to be operational in 2020, will be up to 1000 metres below sea level and also provide telecom and internet services.
“The European Investment Bank is committed to supporting transformational energy in Greece and we are pleased to support this visionary EUR 350 million project essential to increase the use of clean energy. Today’s agreement is a milestone for the new Crete interconnector, one of the longest submarine power links in the world, that will benefit Greek consumers and help to tackle climate change,” said Andrew McDowell, European Investment Bank Vice President responsible for Greece and global energy financing.
Once operational the new interconnector is expected to supply between 34 and 40% of the electricity used on Crete and enable access to renewable energy generated elsewhere in Greece and minimise the risk of electricity shortages during peak periods and high seasonal demand.
The European Investment Bank is one of the world’s largest financiers of energy projects and over the last 5 years has provided EUR 2.2 billion to support new investment to harness wind power, improve power distribution and transmission and improve the security of energy supply across Greece.
Original source: EIB
Published on 09 May 2019
