The Connection Between Crete and Mainland Greece Receives €250 Million in EU Funding
The European Commission has announced that the new subsea electricity interconnection project linking Crete to mainland Greece will be receiving over €250 million from the European Regional Development Fund (ERDF). This significant investment will contribute to the completion of two subsea 500 kv DC cables, measuring 335 km in length and laid at depths of up to 1,200 meters on the seabed.
The initial cable has already been constructed and commenced full commercial operation in 2021, while the second cable is set to be finished by the end of the current year, with commercial operations expected to commence next year. Once both cables are fully operational, they will offer a total transmission capacity of 1 GW.
In addition to the ERDF funding, various European and domestic funds have also been allocated to this project, totaling around €1 billion. The projected benefits of this major investment include a reduction in electricity tariffs for Greek consumers, particularly those on islands not connected to the main grid. This development will provide relief to citizens of Crete during times of high energy prices.
The Independent Power Transmission Operator (IPTO) of Greece, the entity overseeing the Crete-mainland Greece interconnection, has emphasized the cost-saving potential of the project. With both electrical interconnections in operation, consumers in the country are expected to collectively save €550 million annually on their Public Utilities bills, a figure anticipated to increase to €1 billion by 2030.
Furthermore, the environmental impact of the project is notable, with projections indicating a reduction of over 400,000 tons of CO2 emissions in the first year of operation in 2025. This positive outcome stems from the elimination of outdated fossil fuel units in Crete and the facilitation of approximately 2.5 GW of new renewable energy capacity.
Beyond Greece and the EU, the Crete-mainland Greece link holds significance for neighboring countries as well. The interconnection’s endpoint in Crete is envisioned as the starting point for a future submarine line connecting Crete to Cyprus and ultimately Israel, known as the EuroAsia Interconnection. Plans are also in place for a separate electricity line linking Crete to Egypt.
In a separate development, IPTO recently reported an act of sabotage on the Crete-mainland Greece interconnection project, aimed at halting the ongoing construction work. While the incident was reported to the Greek police for investigation, it remains uncertain whether the sabotage will result in any delays to the project’s timeline.