The European Commission has found that public support to seven projects aimed at improving and expanding the Greek electricity network complies with EU state aid rules. The €36m of aid, financed by the Greek state and by EU structural funds, will notably fund the expansion of a 400 kV transmission line into East Macedonia and Thrace and the construction of an extra high voltage substation in the region. This will support an envisaged additional interconnection with Bulgaria and contribute to the interconnection of the Greek national electric energy transmission system to that of Turkey, thereby strengthening the interconnection of the EU with Asia via Greece.
The aid will also fund the construction of an extra high voltage substation in the Peloponnese region, allowing for the integration of renewable power plants. The new substation constitutes one of the possible connection points for a future expansion of the system to the currently non-interconnected island of Crete. This would ultimately reduce the cost and environmental impact of electricity supplied to Crete from the mainland as compared to the current supply produced on the island from expensive diesel fired units.
The aid will also contribute to financing the installation of underground cables to cover needs in densely populated areas in Athens and Thessaloniki and tourist areas like Iraklion. Those projects ensure security and reliability of power supply to consumers in those areas, thus also addressing the challenges posed by the peak season.
The overall investment cost of the projects amount to €112m.