IPTO – Terna: A joint investment scheme for the new Greece-Italy electricity connector

The investment plan for the construction of the second electricity interconnection between Greece and Italy is maturing through actions by the electricity transmission managers of the two countries IPTO and Terna.

In fact, in order to better coordinate the actions of the companies, the two managing directors Manos Manousakis and Stefano Donnarumma met last Monday in Rome, and confirmed the results of the studies carried out for the project by the competent Management Development Directorates.

According to information, Mr. Manousakis and Mr. Donnarumma expressed their desire to implement the second underwater electricity interconnection between the two countries with a length of 200 km and a capacity of 500 – 1,000 MW. Sources want IPTO and Terna to agree on the joint investment for the project and for this purpose they are preparing the establishment of a consortium that will implement it.

The second interface is necessary

The project is considered necessary for the electricity transmission systems of Greece and Italy, both in the context of strengthening security of supply and in achieving European targets for the reduction of gaseous pollutant emissions through electricity. The second interconnection will allow the development of more RES projects, while at the same time it will offer conditions for greater liquidity in the electricity stock markets, especially in Athens, which started operating last November.

Greece and Italy have been interconnected since 2002 with a 500 MW submarine cable manufactured by Terna. Another difference between the new project and the existing infrastructure is that it will be developed with a joint investment of the two Managers.

Regulators and funding

The relevant decisions of the Regulatory Authorities of the two countries are required for the establishment of the scheme and the search for funding. According to information, Mr. Manousakis and Mr. Donnarumma, in order for the project to receive “flesh and blood” and on a commercial level, will coordinate their steps in order to notify the plans of the two Administrators to the Regulators with the request that the cable be included in their Regulated Assets. companies. In this way, the cost-benefit study that the Regulators will carry out will make it possible for the Administrators to seek sources of funding for the project.

Investment programs

So far IPTO and Terna have included the project in the development programs of the transmission systems of Greece and Italy. In fact, the management of Terna presented its investment plan for 2021 last week, having planned the execution of this project. According to the announcement of the Italian Administrator, his plan is to invest 750 million euros for a cable with a capacity of 500 MW and a length of 200 km.

IPTO has also planned the second electrical interconnection in the ten-year development plan 2022-2031 which is for approval at RAE.

As for the start time of the construction works, initial estimates point to 2024.

They also want information from IPTO that has requested the increase of the cable capacity close to 1,000 MW, a request which Terna is open to discuss. The Greek Administrator, according to information, is seeking greater capacity in the context of the planning it is doing to strengthen the high voltage system in Northwestern Greece and the interconnection with Albania.