On 19th of March 2018, the inauguration of the 1st Phase of the Cyclades Interconnection Project with the Mainland Hellenic Electricity Transmission System took place. Following the completion of this project, Syros and Paros are interconnected via a high voltage submarine cable to the continental system.  The electricity needs of Paros, Antiparos, Naxos, Koufonissi, Schinoussa, Irakleia, Ios, Sikinos and Folegandros are now covered by the Mainland Electricity Transmission System, while  Mykonos is expected to be added soon.

The Cyclades Interconnection is  a very important project for the Greek economy as it provides reliable and sufficient power supply to the islands with high voltage electricity. At the same time, the burden on consumers through Public Service Obligations (PSOs) is reduced, since electricity consumers subsidize the more expensive electricity that is generated by oil power stations in the non-interconnected islands. The benefit amounts approximately to €80 million per year while it is estimated that over the next 20 years, the cumulative benefit is to reach € 2.7 billion. The project improves the environmental footprint of the islands due to the significant reduction of pollutant emissions from the Autonomous Production Stations and encourages the penetration of Renewable Energy Sources through new investments in these islands.

The €247 million project was co-funded by the European Union and the National Strategic Reference Framework (NSRF)[1] and financed from the European Investment Bank. Of the total budget, the 1st Phase of the Cyclades Interconnection contributes around €145 million to the Company’s Regulated Asset Base, as the grants that sum at ~€102 million aren’t incorporated in RAB.

The 1st Phase of the Cyclades Interconnection is the first project completed by IPTO S.A. under its new shareholder structure. It is the first step towards achieving the goal of ADMIE Holding and its Affiliate Company IPTO S.A. to invest €1 billion within the next five years, signaling a new era of interconnections for the Transmission System Operator. The management of the company is rapidly proceeding with the 2nd Phase of the Interconnection, which entails the interconnection of Naxos with Paros and Mykonos, and the upgrading of the existing submarine cable interconnections between Andros-Tinos and Andros-Livadi (Evia). The project is budgeted at €70 million. The evaluation of the technical and financial offers submitted in the tenders is at the final stage. The project is expected to be completed by the end of 2019.

In the next day’s IPTO’s management will publish the tender documents for the Crete-Peloponnese Interconnection. This flagship project, budgeted at € 357 million is of major importance to the company and is expected to be completed in 2020. Furthermore, the company recently decided to accelerate by two years the 3rd Phase of the Interconnection of the Cyclades (which includes the laying of a second cable between Lavrion and Syros). The new timetable sets the completion of the project, budgeted at 102 million euros, in 2020 (instead of 2022 as initially planned). Finally, in the new Ten-Year Development Plan for the period 2019-2028, which will soon be submitted for approval to the Greek Regulatory Authority for Energy (RAE), IPTO SA has included the 4th Phase of the Cyclades Interconnection (which includes islands of the South and West Cyclades, such as Serifos, Milos and Santorini) with binding timetables.

The new management that took office in the summer, in cooperation with the employees of IPTO S.A. completed the project in seven months, resolving speedily various administrative and business problems and thus laying the groundwork for a more efficient and effective era in the company.

As noted by the Chairman and Chief Executive Officer of IPTO S.A. M. Manousakis “This is an excellent example of how a company under public control can accelerate projects, operate efficiently and thus contribute to the development of the national economy”

The inauguration ceremony in Syros was attended by the Prime Minister of Greece Alexis Tsipras, the Chairman and CEO of IPTO S.A.  M. Manoussakis, the Chairman of ADMIE Holding I. Rousopoulos and the Vice Chairman I. Margaris, the Chairman of RAE N. Boulaxis, the Chairman’s and CEO’s of PPC M. Panagiotakis, of HEDNO N. Chatziargiriou, of LAGIE M. Filippou, the Members of Parliament of the Cyclades constituency,  as well as representatives of local authorities and the business community.

 

Athens, 22 March 2018

 

 

 

[1] The project is co-funded by the European Union (European Regional Development Fund) and by national resources through the Public Investment Program (PIP). During the 2007-2013 NSRF Programming Period, the 1st Phase of the project was included for co-funding in the Operational Program “Competitiveness and Entrepreneurship” and during the 2014-2020 Programming Period in the Operational Program “Competitiveness, Entrepreneurship and Innovation” as ongoing.