US state fund looking to invest in Greece-Cyprus-Israel interconnector

A U.S. state fund has expressed its interest in investing in an interconnection project that will link the electricity grids of Greece, Cyprus and Israel.

The U.S. International Development Finance Corporation (DFC) has submitted a letter of intent (LoI) to Greece’s transmission system operator (TSO) Independent Power Transmission Operation (IPTO), expressing its interest for an investment participation in the Great Sea Interconnector, formerly known as the EuroAsia Interconnector.

According to IPTO, DFC’s decision came after an economic and technical evaluation of the project.

The prospects and terms of the fund’s participation were discussed in the previous days between executives of IPTO, DFC and the Ministry of Environment and Energy.

“We welcome the formal interest of DFC to participate in the Great Sea Interconnector. This development gives a substantial boost to the implementation of the project, which will bring multiple benefits for Cypriot and Greek consumers,” said Chairman and CEO of IPTO, Manos Manousakis.

The Great Sea Interconnector is a 2,000 MW multi-terminal electricity interconnection that will be 890 kilometers long and up to 3,000 meters deep. It is expected to end the energy isolation of Cyprus, ensure security of supply for Israel, Cyprus and Greece, and establish a reliable green interconnection for Europe.

Norway’s Nexans won the contract for the cable section of the interconnection and Germany’s Siemens was selected as the preferred contractor for the construction of the converter stations.

At the end of 2023, Abu Dhabi National Energy Company PJSC (TAQA) signed a memorandum of understanding (MoU) to explore the possibility of becoming one of the shareholders in the project.