Inauguration of Crete – Attica Interconnection; a project of historic importance
The decision 816/2018 of the Regulatory Authority for Energy (RAE) recognizes explicitly that IPTO S.A, the Affiliate of ADMIE Holding, possesses sufficient know-how, technical reliability and financial clout to control of the construction of the largest project in the history of the National Electricity Transmission System, the Crete-Attica electrical interconnection.
IPTO will immediately establish a wholly owned subsidiary (Special Purpose Vehicle – SPV) with a founding share capital of 200 million euros. The Affiliate of ADMIE Holding has secured since May the required funds, which provide an adequate basis for the construction and financing of the interconnection. Furthermore, with its decision, RAE enables credible partners to acquire minority stakes in the SPV, by paying in the Affiliate the sum that amounts to the nominal value of the shares. It is noted that for the cooperation of the interested parties, the text of the Shareholders’ Agreement (SHA) has been already been drafted by IPTO in the framework of previous consultations.
IPTO’s Management in close cooperation with ADMIE Holding and the foreign strategic investor, State Grid Corporation of China, being fully aware of the importance of the timely implementation of the electrical interconnection between Attica and Crete, is committed to its completion by 2022. To this end, it has already made a significant progress on a number of actions, for which RAE has also been briefed. For instance, the technical specifications of the project have already been completed. The Environmental Impact Assessment Study (EIAS) will be submitted for approval to the Ministry of the Environment and Energy within the next few weeks, while the cost-benefit study and the necessary studies on the operation of the Electrical System of Crete after the completion of both interconnections (with the Peloponnese and Attica) are in the final stage.
As noted by the Chairman and Chief Executive of IPTO S.A. M. Manousakis “RAE’s decision is historic as it vindicates the great effort made by IPTO to speed up the island’s interconnections. These interconnections are crucial not only to ensure the long-term supply sufficiency of the islands but also to drastically reduce PSO charges in all households’ electricity bills. By undertaking the most important infrastructure project currently under construction in Greece and one of the most important interconnections across Europe, the Operator becomes an even stronger company and consolidates its leading position in the power transmission energy industry”.
The Chairman of ADMIE Holding Iason Rousopoulos commented that ‘Since the completion of the ownership unbundling and the listing of ADMIE Holding in the Athens Stock Exchange, IPTO’s managerial team has envisioned the new era for the Operator, with the interconnection of the islands as its central strategic aim. The company that until now was operating a mainly overland grid, is dynamically expanding its activities to the field of island interconnections, creating value for the consumers and the shareholders. The decision of RAE is the definitive milestone for the new chapter of the Independent Power Transmission Operator’.