Prysmian, Nexans, and Fulgor to submit final offers in submarine power cable battle for Greek interconnectors

Greece’s electricity transmission system operator (TSO), Independent Power Transmission Operator (IPTO or ADMIE), is inviting three players – Prysmian, Nexans, and Fulgor – to provide their final offers for the tender process regarding submarine alternating current (AC) cables destined for Aegean Islands interconnectors.

After the Greek electricity grid operator’s first phase of the tender, launched in April 2024, for the conclusion of a framework agreement concerning the AC submarine cable projects for the interconnections of the Dodecanese and the islands of the northeast Aegean was completed with the submission of three participation applications from Fulgor, Nexans Norway, and Prysmian Powerlink.

Following the evaluation of all three candidates positively, IPTO disclosed plans to begin the second phase of the tendering process to pick the contractors that would undertake the project under a six-year framework agreement with the initial budget of the project amounting to €1.72 billion or around $1.89 billion (plus VAT).

Regarding the conclusion of a framework agreement for the 150 kV AC cable projects, the Greek TSO explains that the participating companies will be invited to submit their final financial and technical offer, based on which the contractor or contractors of the project will be selected.

As Phase B international tender begins, IPTO underlines that the actual assignment will be carried out based on the criterion of the most advantageous offer from a financial point of view. The project’s initial budget, with the expected six-year framework agreement, still amounts to €1.72 billion, plus VAT.

According to the Greek TSO, it proceeded for the first time with such specific tendering practice, which is also followed by other European operators, due to the high demand for submarine cables for interconnection projects at an international level, thus, the undertaking is expected to assist in ensuring the availability of production slots at the contractors’ factories.

The framework agreement is perceived to ensure more favorable prices, delivery times, and better management of available resources. Based on the current planning, the electrical interconnection of the Dodecanese, Kos, Rhodes, and Karpathos will be interconnected with the mainland system, via Corinth, in two phases.

Thodoros Skylakakis,Greece’s Minister of Environment and Energy, commented: “The major interconnection projects of the islands are proceeding to their next phase with the progress of the tender for the submarine cables of the Dodecanese and NE Aegean interconnections.

“The implementation of these projects will allow cheap renewable energy to reach our islands and reduce the heavy burden on the Utilities, which is mainly borne by consumers of mainland Greece. At the same time, the very expensive and ‘dirty’ energy from fossil fuels, which today continues to be used in the island country, will be reduced.”

Moreover, the interconnection of the northeastern Aegean will encompass the islands of Limnos, Lesvos, Skyros, Chios, and Samos and will be implemented in three phases. With the integration of the Dodecanese and the islands of the NE Aegean into the continental electricity transmission system in the coming years, IPTO highlights that it will complete the large island interconnections foreseen in its investment program.

As a result, the TSO is convinced that the interconnections of the two island complexes will significantly strengthen energy security in the eastern part of the country while reducing the islands’ carbon footprint, thanks to the withdrawal of polluting and costly local power generation units.

Manos Manousakis, President and CEO of IPTO, remarked: “ADMIE is consistently moving forward with the implementation of another cycle of island interconnections in the Dodecanese and the NE Aegean. With the conditions in the international submarine power cable market becoming much more demanding, we are adopting a new tendering model so that we are able to build our projects on time and more cost-effectively.

“Beyond the obvious benefits of these electrical connections, strengthening the energy infrastructure in the Aegean is also the first important step for the development of offshore wind farms, which will begin to be installed in the coming years in the Greek seas.”

IPTO created a special-purpose company with the National Grid Saudi Electricity Company a few months ago to examine the feasibility of an electricity interconnector between Greece and Saudi Arabia, paving the way towards a clean energy corridor stretching from Athens to Riyadh.

Recently, Manos Manousakis, Chairman and CEO of IPTO, underscored the key role grids play in bringing more green energy online. A deal has also been ironed out for a multibillion-euro underwater high voltage direct current (HVDC) interconnector project.

This will link Europe, the Middle East, and Asia, connecting the green electricity transmission dots for the Cyprus-Greece-Israel triangle, bringing together game-changing low-carbon and clean energy bonds in the transition to a net zero ecosystem.