The interconnection of Crete with the National Electricity Transmission System (NETS), project of key importance for the Greek Economy, was launched today, with the publication of the tender documents for the construction of the undersea cable connecting Peloponnese with Crete and the two substations on both ends of the cable. The first phase of the interconnection of Crete, with a total budget of 324 million euros, is planned to be co-funded by the National Strategic Reference Framework (NSRF) 2014-20 and will be implemented by IPTO S.A. (Independent Power Transmission Operator). IPTO’s new Management in close cooperation with ADMIE Holding and the foreign strategic investor, State Grid Corporation of China speeded up the procedures, thus making visible the acceleration of its investment program, as reflected in the new Ten-Year Network Development Plan. This flagship project is a further step towards achieving the goal of ADMIE Holding and its Affiliate Company IPTO S.A. to invest 1 billion euros in the electricity transmission system within the next 5 years.
The commissioning of the project is expected in 2020. The Crete – Peloponnese Interconnection is a very important project for the Greek economy as it provides reliable and sufficient power supply for Crete and will lead to substantial relief for all electricity consumers through the reduction of the PSO’s. The reduction is estimated around 215 million euros on an annual basis, i.e. a reduction of more than 50% of the PSOs currently charged due to the non-interconnection of Crete and amounting to 300 million euros per year on average. Furthermore, the project improves the environmental footprint due to the significant reduction of pollutant emissions and encourages new investments in the Renewable Energy Sources sector.
IPTO is launching an international open tender via an electronic auction for the project “Study, Supply and Installation of a Two-Circuit Submarine and Underwater Cable System for the Interconnection of Crete with the National Electricity Transmission System”. The award criterion will be the most economically advantageous tender, based solely on the lowest price. The project has been “divided” into three sections, with the aim of promoting competition and achieving the best economic and technical terms for each part. A separate tender will be carried out for the construction of a new substation in the Southeastern Peloponnese and the extension of the existing substation in the area of Chania.
As noted by the Chairman and Chief Executive of IPTO S.A. M. Manousakis: “IPTO will make every effort that is necessary to complete the project in the year 2020, as in this year the exceptions provided by EU legislation on emission limits for power plants in Autonomous Productions Systems such as Crete are ending. The Crete-Peloponnese Interconnection, combined with the “great interconnection” between Crete and Attica (which IPTO’s Management aims to realize in the fastest and most efficient way) will ensure the sufficiency and reliability of the long-term supply of Crete “.
Athens, 11 April 2018