Saudi Arabia and Greece have reached an agreement to conduct a feasibility study on a cross-border electricity interconnection project, which is aimed at boosting the energy corridors between the Middle East and Europe and thus contributing to the energy transition of the wider region.
For this purpose, a special purpose company, Saudi Greek Interconnection, is being set up by Saudi National Grid and the Greek IPTO which will each hold a 50% stake in the venture.
The Greece-Saudi Arabia cross border electricity interconnection is a very important project for Europe that can accelerate the Continent’s energy transition and provide access to new sources of clean energy, said Manos Manousakis, the Chairman and CEO of Greek IPTO after signing the deal with Waleed Al Saadi, the CEO of National Grid at a special event held at the Operator’s headquarters in Athens.
"With the agreement we have signed with National Grid, the Saudi Greek Interconnection comes into being.
This cross border interconnection will further strengthen the energy corridors between the Middle East and Europe, in which IPTO has an active role, contributing to the energy transition of the wider region. Given the value of the Saudi Greek Interconnection for Asia and Europe’s energy objectives, we aim to rapidly mature the interconnection and promote it as a Project of Common Interest for the EU, he added.
The partnership between IPTO and National Grid, overseen by the Ministry of Energy and Environment of Greece and the Ministry of Energy of Saudi Arabia, reflects the strategic cooperation between Greece and Saudi Arabia in the energy sector, which was agreed at the highest level in the summer of 2022, during the visit to Greece by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud the Crown Prince and the Prime Minister of Saudi Arabia.
In the framework of this cooperation, the two electricity national transmission grid operators had signed the shareholder’s agreement in September last year in Athens.
According to industry experts, the technical teams of both IPTO and National Grid have already started working on the maturation of the electrical interconnection and its design parameters, beginning with the assessment and analysis of the feasibility and commercial viability of the project.
Manousakis said the Greece-Saudi Arabia electricity interconnection is a key project that epitomizes the strategic cooperation between the two countries in the energy field.
The Saudi Greek electricity Interconnection which will interconnect for the first time the kingdom with the European continent, is the beginning of a new era that will strengthen the kingdom and European interconnection and move towards energy transition and utilization of Renewable Resources.
The two countries stressed the importance of strategic cooperation between them in a number of issues of common interest in the field of energy, including the generation of electricity using renewable energy, the establishment of the power grid, and the export of electricity produced using renewable energy to Greece, and to Europe via Greece.
This project will enable the more effective use of renewable energy, access to sustainable electricity generation and improved security of electricity supplies. It will benefit the socio economy of both countries, he added.
