At 800 million euros a year reaches the benefit of consumers from electrical interconnections of the Cyclades and Crete, due to the cessation of the high cost of local power plants, followed by – with analogue benefits – The interconnections of the Dodecanese and islands of the Northeast Aegean.
These figures result from an interview given by ADMIE’s president and CEO Manos Manousakis to RES-EIA, who still marks the environmental benefits of interconnections, which is the reduction of carbon dioxide emissions and the increase in the possibility of installing RES unit units.
It is recalled that the interconnection of Crete has recently been completed and is in test, while the Cyclades’ interconnections are projected to be completed in 2026.
Asked about the local reactions that arise during the construction of ADMIE’s works, Mr. Manousakis points out that “we must talk about finding common places about how we can proceed to keep the lights on, at the lowest possible cost for citizens and the best possible.”
In addition, for the electrical interconnection with Cyprus, the head of ADMIE states that the most important issue at this stage is to recover the € 250m investment costs that the administrator has made to access bank lending to the continuation of the project.
Here’s the text of the interview:
Note that the benefit of the operation of the large Crete – Attica interconnection from the reduction of the YGI account is € 300 million a year. When will this benefit look at consumer accounts?
The project of the Crete -Attica electric interconnection implies economic benefits, not only for the residents of Crete but for all citizens of the country, as it drastically reduces the cost of the utility services we pay in the electricity bills. The savings of Crete’s interconnection with Attica is estimated at € 300 million a year, but combined with the island’s interconnection through the Peloponnese, the annual reduction in EUR 550 million. This means that both projects are depreciated in less than three years.
These benefits result from the termination of Crete’s energy dependence on the old and low -performance local power plants that use oil as fuel and have high operating costs. I recall that the relief of these charges by the Crete-Peloponnese and the Northern Cyclades’ interconnections had created the financial margin for subsidizing electricity bills by the Ministry of Environment and Energy during the energy crisis.
Correspondingly, what is the benefit of the Cyclades’ interconnections that have been implemented so far, the Dodecanese and the northeast Aegean?
The interconnections of the Northern Cyclades, namely the islands of Paros, Mykonos, Andros and Naxos, which we completed in 2020, were the first “generation” of high voltage underwater infrastructure we developed in the Aegean. With these investments, the annual savings for consumers across the country is around € 160 million and will reach € 250 million as soon as the southern Cyclades are interconnected, namely Santorini, Folegandros, Milos and Serifos. The economic benefit will be even greater in the case of the Dodecanese and the northeast Aegean, due to the number and size of the islands to be interconnected.
What is the timetable for completing all island interconnections?
The program of ADMIE’s island interconnections is in full swing. During the last eight years, we have built 8 island connections and continue. Cyclades’ interconnections are completed in 2026. Next step are the interconnections of the Dodecanese and islands of the Northeast Aegean. These projects are in advanced phase in terms of contests for underwater cables and conversion stations for the second continuous current interconnection we will install between Corinth and Kos.
Our goal is for all the big islands in the Aegean to have been interconnected to the high trend until the beginning of the next decade, as our ten -year investment plan. In the Ionian Sea, we are upgrading the existing links that are approaching the end of their life cycle, with new, more modern and more durable infrastructure that will be completed within the next two years. We also study future energy corridors in the island country, along with the existing island interconnections program, to further enhance the flexibility and stability of the system, due to the increasing RES penetration, which in the coming years will exceed 80% of the power mix.
Apart from the economic benefit of the interconnections, what are the consequences on the level of renewable energy growth in the islands, the reduction of carbon dioxide emissions, the reduction of RES cuts and the improvement of supply safety?
The interfaces have a strong energy and environmental footprint. For example, in the northern Cyclades, electric interconnections have shielded safe electricity to the islands directly or indirectly connected to the high voltage system and which every summer welcomes very high tourist movement and have increased energy needs. In the islands we have put in “in the socket”, power outages have virtually disappeared and their dependence on local oil stations has ended. In the case of the Cyclades, due to the withdrawal of these units, the annual CO2 emissions have been reduced by 220 mm each year while with the complete integration of the island complex into the continental trunk, the reduction will exceed 370 mm tonnes.
The same will happen soon in Crete, where CO2 emissions for power production will be reset. In the interconnections of the Dodecanese and the NE Aegean islands, the reduction of dioxide emissions will exceed 15 million tonnes over 25 years. All of this means a better quality of life for residents and upgraded tourist product for visitors, as the islands will enjoy a reliable electrical connection to the mainland and a clearer atmosphere. With the expansion of the system to the island area, the possibilities of installing new RES units and land units are increasing. With the interconnections we implement will create a capacity that will allow us to better use the pure energy resources that our country, air and the sun have in abundance.
Transfer network development projects often face local reactions. I am referring to the western corridor of the Peloponnese in the past that ended with delay due to reactions and now in the eastern corridor, to the upgrading of the Crete network, the completion of the Heraklion – Attica interconnection with the installation of the required equipment in Aegina. What are the consequences of the delay or even possible cancellation of some of these projects?
It is true that the development of the electric system requires projects that in some cases encounter local reactions. Each of the projects you mention is essential to shield the system in different geographical areas and as they delay, to a lesser or greater degree, the energy “risk” for consumers. Over time, we are in open dialogue with local communities and if we need to modify our planning to reduce any nuisances from our activities. However, the institutional framework is needed to protect the manager. In the case of the 400 kV of Megalopolis-Patras, the 5 monks reactions delayed the operation of an almost integrated line for about 2 years, leaving the Peloponnese energy-free. We found a solution, but it cost in time and increased by € 2.5 million for consumers.
The 400 kV of Corinth-Attica is equally essential for the complete shield of the Peloponnese and the interconnections that end there. The High Tension Center Argyroupolis is crucial for the safe supply of the basin, especially in view of the development of Greek and Cold Ironing in the ports and marinas of the coastal front and we must all find a way to upgrade to 400 kV. In Crete, we need to strengthen the local system with the Chania-Damasta Heraklion line in order to work to the maximum and reliably both the interconnections that the island now has. The electrode station of the electrode station in Stachotorroe, through Aegina, is essential for the proper operation of the Crete-Attica electric interconnection. From all this it becomes clear that we need to talk about finding common places about how we can proceed to keep the lights on, at the lowest possible cost for citizens and on the best possible terms for local communities.
What are the latest developments in relation to interconnection with Cyprus? Does the project remain “alive”? What is the next step we should expect?
ADMIE has so far invested 250m euros in the project. The most important issue at this stage of the project is the recovery of the investment costs we have done so far, which depends on the decisions of the regulators of Greece and Cyprus. Without this recovery it is impossible to access bank lending that is absolutely essential for funding and thus the continuation of the interconnection project. Once we ensure the recovery of the income, the next step will be the signing of the contract with Siemens who has won the Conversion Station Competition to be built in Cyprus.
What are the lessons for the Greek market from the blackout in Spain? We need to take additional precautionary measures and what?
The blackout on the Iberian Peninsula sounded an alarm for all European administrators. This is a very serious event that has emphatically highlighted the challenges that all electrical systems face, no matter how advanced they are. We have to become better and evolve our reflexes in the new energy landscape, which becomes greener with a rapid pace. This creates great challenges in the functioning of the system, especially in times where production is significantly higher than demand. This issue will be smoothed with the development of storage. Until then, we proceed to power cuts to maintain the stability of the system. It is also crucial that it is also Cumulative Representative Bodies to have control of the units they represent.