Greece’s Copelouzos Group is accelerating the development of its ambitious €4.2 billion ($4.3 billion) undersea power link with Egypt, targeting a final investment decision in 2024 and a startup by 2030. The executive in charge of the project, Ioannis Karydas, Chief Executive Officer for renewables, energy storage, and interconnections, shared these plans in an interview in Athens.
The proposed project, known as Gregy, has garnered significant interest from European banks for potential financing. This undersea transmission line will connect Egypt and Greece, and forms a crucial part of Greece’s broader strategy to bolster its energy infrastructure. Over recent years, Greece has seen increasing investments in energy, particularly in areas such as LNG terminals, pipeline links, and power lines, positioning it as a vital energy gateway into Europe. This is especially pertinent as the continent aims to reduce its dependency on Russian gas and achieve net-zero carbon emissions by 2050.
Key Milestones for the Gregy Project
The Gregy power link has already been included in the European Union’s list of energy projects of common and mutual interest, making it eligible for a grant that could cover up to 50% of the construction costs. Additionally, Greece’s power grid operator, IPTO, indicated in November its interest in potentially investing in the project.
This undersea transmission line will consist of four cables spanning nearly 1,000 kilometers (620 miles) across the eastern Mediterranean. It aims to bring electricity from a portfolio of 9.5 gigawatts of wind and solar energy projects that Copelouzos will develop in Egypt, marking another crucial step in Egypt’s renewable energy expansion.
A Multi-Dimensional Impact on Europe’s Energy Landscape
The electricity generated from these projects will have a diverse set of applications. One-third of the energy will be allocated to support Greek industry, while another one-third will be used to supply energy to Bulgaria, Italy, and other parts of Europe. The remaining third will be directed towards producing hydrogen and green methanol in Greece, which will be used in the production of eco-friendly fuels for ships.
According to Karydas, the project could help replace 4.5 billion cubic meters of natural gas annually, a substantial step towards reducing carbon footprints and enhancing energy security for Europe. The interconnected nature of the project will also bolster Europe’s goal to diversify energy sources and move towards greener alternatives.
Investment Plans for Wind and Solar Projects in Egypt
The associated wind and solar parks in Egypt are expected to require around €8 billion in investments. Copelouzos plans to form an international consortium of companies to develop these projects, and a memorandum of understanding has already been signed with Infinity Power, a joint venture between Egypt’s Infinity and Abu Dhabi’s Masdar.
This partnership marks a significant step in Egypt’s renewable energy strategy, creating vast opportunities for green energy generation while strengthening Egypt’s role in the global energy transition.
With these developments, Copelouzos Group’s Gregy power link is poised to play a pivotal role in connecting Africa, Europe, and the Mediterranean, positioning both Greece and Egypt as crucial players in the shift toward sustainable energy. The project underscores Greece’s rising status as a key energy hub in Europe and will significantly enhance regional energy cooperation.
