Abu Dhabi National Energy Company (Taqa), one of the largest listed integrated utility companies in Europe, the Middle East and Africa, has signed a MoU with Greek and Cyprus governments to explore the possibility of becoming one of the shareholders in a project to develop a 900km high-voltage direct current (HVDC) electricity interconnection between Greece and Cyprus.

 

Under the terms of the deal, Taqa will explore joining Greece’s transmission system operator, Independent Power Transmission Operation of Greece (IPTO) and the Cyprus Government as shareholders in a project which is estimated to cost 1.9 billion euro. 

 

The project will terminate Cyprus’ energy isolation, increase energy security in the Eastern Mediterranean and encourage the development and export of clean energy to both Cyprus, Greece and the rest of the European Union (EU). 

 

Cyprus has significant green energy export potential with the country investing heavily in the flow of clean energy between neighbouring countries and regions. 

 

Along with Greece, it has some of the highest potential for renewable energy in Europe for both solar and onshore and offshore wind power generation, making the two countries ideal locations for a project of this kind. 

 

The agreement was signed at the recent COP28 event in Dubai, in the presence of George Papanastasiou, Cyprus Minister of Energy, Commerce, and Industry, Manos Manousakis, President and CEO of IPTO, the promoter of the project, and Jasim Husain Thabet, Taqa’s Group CEO and Managing Director.  

 

IPTO is implementing a 5 billion euro development programme by the end of the decade, which includes not only a series of island interconnections within Greece, but also a series of cross-border interconnections that act as a catalyst for the energy transition.  

 

The interconnection project between Greece and Cyprus is in an advanced stage, with feasibility studies completed, and contracts for two major engineering, procurement and construction (EPC) components have been reserved. 

 

In July, Nexans was awarded a 1.43 billion euro contract for the HVDC cables contract. Furthermore, Siemens AG was appointed as the preferred bidder for the contract to build the two VSC HVDC converter stations for the project. 

 

Lauding the deal, Papanastasiou said it constitutes an additional, pivotal milestone towards the realisation of the electricity interconnection between Cyprus and Greece. 

 

"As an EU Project of Common Interest, which has already been approved for a 657 million euro grant from the “Connecting Europe Facility”, the interconnection is of crucial importance to Cyprus as its construction will lift our island’s ongoing energy isolation. The project is also key to reaching Cyprus’ wider energy strategy goals of fortifying its energy security, reducing the cost of electricity for the benefit of our economy’s competitiveness, as well as expediting our green transition," he stated. 

 

"The Republic of Cyprus, which is now assessing its own active participation to the project, as shareholder, is confident that the strategic involvement of distinguished and experienced entities such as IPTO and now TAQA, can ensure its timely completion and enhance further the cooperation between Cyprus, Greece and the United Arab Emirates," he added. 

 

Manousakis said this agreement reflects the high investor interest for the project promoted by IPTO that will be known from now on as the Great Sea Interconnector. 

 

"The interconnection between Greece and Cyprus, which is the most mature segment, is entering construction phase, beginning from the subsea cable, which will be built by Nexans.  We are very much looking forward to a close and fruitful cooperation with all stakeholders in order to expedite a project of strategic importance which enhances the energy security and the green transition in the Eastern Mediterranean, bringing the region closer to the electricity system of Europe," he added. 

 

Thabet stated that Taqa aims to play a key role in this transformative project which will increase energy security and accelerate the deployment of clean energy in the Eastern Mediterranean. 

 

"As a low-carbon power and water champion, Taqa is committed to investing in the transmission infrastructure needed for the energy transition, enabling decarbonisation and ensuring energy security," he stated.

 

"HVDC projects are vital to connect clean energy projects to the end users, and we are ambitiously accelerating investment and growth in our infrastructure business to help our stakeholders 

 

Taqa had recently announced its new growth targets for 2030, including its plans to expand the Transmission and Distribution business internationally. 

 

This HVDC project is the third project of its kind outside of the UAE, that Taqa has announced this year. Just last month, the company announced an MoU with the Romanian Power Grid Company Transelectrica, Meridiam, E-INFRA and Fluor for a feasibility study of an HVDC infrastructure project in Romania. 

 

In April, the Abu Dhabi group also invested AED113 million into Xlinks First Limited to lay the world’s longest HVDC subsea cables between the UK and Morocco to transport renewable power to the UK.-TradeArabia News Service