Tender for submarine power cables moves to next stage with $1.89 billion earmarked for Aegean Islands interconnectors

Greece’s electricity transmission system operator (TSO), Independent Power Transmission Operator (IPTO or ADMIE), has decided to move to the next phase after receiving three applications for participation in its tender process for submarine alternating current (AC) cables destined for Aegean Islands interconnectors.

The Greek electricity grid operator claims that the first phase of its tender, launched in April 2024, for the conclusion of a framework agreement concerning the AC submarine cable projects of the interconnections of the Dodecanese and the islands of the northeast Aegean has been completed thanks to the submission of three participation applications.

All three candidates were evaluated positively, thus, IPTO intends to begin the second phase of the tendering process in the next few days to pick the contractors that will 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).

The framework agreement is expected to ensure lower prices, while saving time and resources, through a competitive process rather than conducting separate tenders. According to the TSO, this is its first time proceeding with this specific tendering practice, even though other European electricity transmission operators follow it due to the limited availability of time slots for submarine cables in the Greek and international markets.

This tendering activity is envisioned to enable the selection of contractors for the study, supply, and installation of underwater and underground cables in the context of interconnection projects of two island complexes, which are anticipated to bring significant cuts in CO2 emissions emitted by the local power stations, contributing to the utilization of the high potential of renewable energy sources (RES) in the Aegean area.

The interconnection of the Aegean islands with the continental system is seen as a key priority in the Greek TSO’s new ten-year development program for 2025-2034 to end the electrical isolation of non-interconnected islands and increase the reliability of their power supply while reducing the cost of generated energy.

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.

Manousakis highlights that Europe needs at least five new electricity transmission corridors for a core integrated EU system, with at least three vertical and two horizontal corridors.