French, Swedish, Italian and Greek companies this week signed contracts
to install underground and subsea cabling to connect the Cyclades to the
mainland grid. The connections will boost solar project development in
the isalnds.
The Cyclades, the sun-washed complex of Greek islands defined by its white
and blue houses, attract millions of tourists each year.
What most visitors ignore, is that powering idyllic islands requires dirty
diesel generators but that will cease being the case from 2016.
ADMIE, Greece's independent power transmission operator (ITSO), on
Wednesday signed contracts with Greek and international companies to connect
the islands of Mykonos, Paros, Tinos and Syros with Greece's mainland grid.
The project, which will use submarine cables, has a €240 million budget,
provided by the EU's National Strategic Reference Framework funds and the European
Investment Bank.
Submarine cables project
France's Alstom Grid S.p.A., the Swedish branch of ABB AB, Italy's
Prysmian Powerlink Srl and Greece's Electric Cables S.A will undertake
construction of the underground and submarine electricity lines with Prysmian
building the 108km long underground and submarine 150kV cable connecting
Lavrion and the island of Syros.
Greek Cables will connect Syros to Mykonos, Tinos and Paros as well as
providing a terminal at Syros.
Alstom will construct 150kV substations at Lavrion, Mykonos, Syros and
Paros and ABB AB will build a reactive power complex at Syros.
All four project components have 18-22 months to complete the first phase
of the project. Additional contracts concerning the interconnection of Naxos
island, also in the Cyclades group, to the mainland grid will be signed later.
Why the project matters
Speaking at Wednesday's signing ceremony, Greece's deputy energy minister
Asimakis Papageorgiou, justified the necessity of the project in economic,
environmental and energy security terms.
Papageorgiou said the interconnection of the four islands to the grid will
facilitate the deployment of renewable energy projects in the islands.
Investors have been expressing interest in developing renewable energy projects
in the sun-washed and windy islands region of Greece, but a lack of grid
infrastructure means projects have not materialised.
Perhaps most significant of all, given Greece's economic situation, is the
fact the project will bear huge financial savings. Electricity consumers in
Greece are expected to save about €100 million per year, money used to
subsidise diesel generation in the islands.
The cost of electrifying Greece's islands through petroleum power stations
is shared by all Greeks through a levy in electricity bills. Following the
interconnection of the Cyclades to the mainland, these stations, Papageorgiou
said, will remain in reserve for emergencies.
Tourism will benefit too, the deputy minister said. Connecting Mykonos,
Paros, Tinos and Syros to the grid means securing their electricity supply and
eliminating the risk of blackouts.
Greece's next big plan is to connect Crete with the grid, Papageorgiou
said. Crete's connection would save consumers an additional €400 million per
year, he said.
Cynics, however, may note the ministry took 20 years of discussions
regarding the Cyclades interconnection project prior to this week's contract
signing.
Greece has also received EU funds to study the electricity interconnection
of the country with Cyprus and Israel, using submarine cables. The goal is to
enhance the country's energy security, increase the number of electricity
markets in which it participates and eventually emerge as an energy hub for the
southeastern Mediterranean.
ADMIE for sale
In July, the government's Public Power Corporation (PPC) approved the
participation of four investors/partnerships in a bidding process for the
acquisition of 66% of Power transmission operator ADMIE.
Investors will need to submit final bids by November, while ADMIE's
privatization is expected to be complete early next year.
The bidders include a partnership between Belgium's Elia System Operator
S.A. and the IFM Investors Pty Ltd; Canada's Public Sector Pension Investment
Board; China's State Grid International Development Limited; and Terna, Italy's
leading electricity grid operator.
The Greek government is keen to privatize key electricity industry assets including
large PPC-owned power stations.
Greece's electricity industry is changing rapidly with the government
arguing it is trying to align policies with the rest of the EU by creating
market-based conditions and fair competition.
The renewable energy lobby is pushing for the role of renewable plants to
be upgraded in the new landscape and demanding transparent market conditions.
(www.pv-magazine.com)