‘World’s largest utility company’ enters Greece’s largest island interconnector

A wholly owned principal subsidiary of Chinese state-owned electric utility corporation State Grid Corporation of China (SGCC) has purchased a 20% share in a subsidiary owned by Greek transmission system operator (TSO) Independent Power Transmission Operator (IPTO or ADMIE), thereby entering what is said to be Greece’s largest island interconnector.

The agreement for the disposal of shares of ADMIE’s subsidiary company and operator of the Crete-Attica electricity interconnection, Ariadne Interconnection, to State Grid International Development (SGID), was signed by the ADMIE President and CEO Manos Manousakis and SGID President Yu Jun.

To remind, ADMIE extended the second phase of its tender to dispose of a 20% interest in the special purpose company in May 2024, enabling candidates to submit their offers until June 21. Last month the Greek TSO reported that its board had greenlighted the 20% allocation of Ariadni Interconnection to State Grid International Development Belgium, which submitted a binding, improved offer in the relevant tender, with completion of the transaction subject to the approval of the competent authorities.

“ADMIE has proven to be a modern and extroverted European Administrator, with high technical know-how and an ambitious strategy. Our investments are geared towards accelerating the energy transition and making Greece a strong infrastructure hub, at the crossroads of Europe, Africa and Asia,” said Manousakis.

“Strategic partnerships, such as the one with the State Grid Corporation of China, the Operator of the largest electricity transmission system in the world, contribute to the achievement of the above. Building on this relationship, I am confident that the investment participation of State Grid International Development will strengthen the development prospects of Ariadne, the entity that implements the largest island interconnection that Greece has seen to date.”

The Greek TSO describes the Attica-Crete electrical interconnection as “the largest and most complex” electricity transmission project in Greece and one of the three deepest marine interconnections worldwide.

According to ADMIE’s Head, the construction of the Crete-Attica electrical interconnection will be completed by the end of the year, followed by test electrification with the aim going into commercial operation in the summer of 2025.

Greece’s General Secretary of Energy and Mineral Raw Materials of the Ministry of the Interior Aristoteli Aivaliotis, Ambassador of the People’s Republic of China to Greece Fang Qiu, and Executive Vice President of SGCC Jin Wei were present at the agreement signing, along with senior management officials of ADMIE, ADMIE Participations and State Grid.

“The State Grid Corporation of China, the world’s largest utility company, is dedicatedly serving the ‘green’ transformation by accelerating the construction of new energy systems and infrastructure. Since June 2017, we have established a strong partnership with ADMIE, based on the principles of mutual trust and mutual benefit, promoting the modernization and green transformation of the Greek electricity grid,” said Wei.

SGCC’s Vice President Zhu Guangchao said: “Through this equity investment in Ariadne Interconnection, we will further deepen our practical cooperation in the energy sector between China and Greece. Strictly respecting the legal and regulatory framework of the EU and Greece, we will continue to work closely with ADMIE to promote the safe and smooth operation of the project.”

Nexans was tasked with designing, manufacturing, and installing a 335-kilometer subsea HVDC cable system for Ariadne Interconnection, under a contract won in May 2020. The activities were performed by Nexans Aurora.

The cable link will connect the Attica region on the Greek mainland to the Heraklion area in Crete, thanks to Nexans providing one 500 MW HVDC subsea cable system to form half of the total 1,000 MW bipole interconnection and Prysmian handling the other half of the interconnection and two subsea telecom links.

A couple of days ago, ADMIE launched the tender for the country’s second high-voltage direct current (HVDC) cable system, a project that will integrate the Dodecanese Islands into the mainland high-voltage grid.