The construction of an electricity interconnection between Crete and the Peloponnese on mainland Greece will provide the island with a cheaper and more secure energy supply. The project includes laying two new submarine cables – each 135 km long – making this the longest sub-sea alternative current connection in the world. Additional work includes upgrading and construction of transmission lines, underground cables and substations in Crete and on the mainland.
- 16 August 2019
Landing points for the submarine cables are Kissamos Bay in Crete and the Malea peninsula in Peloponnese. The cables will run overhead, underground and in the sea. Work includes the construction of a synchronous compensator in Crete. This is a motor that is used to maintain a constant grid voltage.
The aim of the project is to cut the cost of electricity generation in Crete by replacing expensive and polluting oil-fired units with a more efficient alternative from across the Ionian Sea. The new link contributes to an increase in electricity generated from renewable sources for use by the island’s residents and businesses. The interconnector will provide around 34 % of Crete’s total electricity demand in 2021.
Boosting prosperity
Provision of a reliable power supply is seen as essential to Crete’s prosperity and supports the island’s economic development in the long term. In addition, the new supply reduces emissions from electricity generation on the island, which will have a positive impact on the environment and make Crete even more attractive to tourists. Moreover, the project improves the island’s ability to exploit its renewable energy system potential, which has been limited.
Economic indicators for the project expressed through the economic rate of return has been assessed at the level of 42.6 % and the economic net present value at EUR 3.7 billion. The project is expected to create 10 permanent jobs during its operational phase. During implementation, job creation is equivalent to 343 man years.
Total investment and EU funding
Total investment for the project “AC Interconnection Crete - Peloponnese” is EUR 356 416 665, with the EU’s European Regional Development Fund contributing EUR 94 720 370 through the “Competitiveness, Entrepreneurship and Innovation” Operational Programme for the 2014-2020 programming period. The investment falls under the priority “Transport and energy networks”.