Release date: 7 July 2025
Promoter – Financial Intermediary
INDEPENDENT POWER TRANSMISSION OPERATOR SALocation
Description
The project will facilitate the interconnection of the islands of Kos, Rhodes and Karpathos with the Hellenic Electricity Transmission System. More specifically, it will finance: - one overhead transmission line (Corinth), two converter stations (Corinth and Kos); - two High Voltage Direct Current submarine cables (Corinth to Kos), one Dedicated Metallic Return submarine cable (Corinth to Kos); - two fibre optic submarine cables (Kos to Naxos, and Kos to Syros); - two Gas Insulated Switchgear substations (Kos and Karpathos); - one Static Compensator (Rhodes); - four power and eight fibre optic submarine cables (Kos to Rhodes, and Rhodes to Karpathos); - works in or expansion of three existing Gas Insulated Switchgear substations (Rhodes and Corinth).
Additionality and Impact
The Project will interconnect the Dodecanese islands, which currently rely on local diesel and Heavy Fuel Oil power generation, to the Hellenic Electricity Transmission System. It will enable the development and integration of additional renewable capacity, delivering significant economic benefits through local and general impacts by addressing multiple market failures. The Project also supports regional development and cohesion.
The net benefits of the Project translate into a fair economic profitability and broader social benefits. The good governance framework underpins overall good quality and results of the Project.
The Project is consistent with national and EU climate and energy goals and aligns with the REPowerEU objectives. The financing of this Project also contributes to the Bank's lending priority objectives on Climate Action, Environmental Sustainability, and Economic and Social Cohesion. The financing of the Project will contribute to the Bank's Energy Lending Policy themes on Securing the Enabling Infrastructure (energy networks).
The proposed operation meets the required funding needs of the Promoter, by providing an amortising loan with a long tenor and an adequate pre-amortisation period, together with a sizeable financing volume. The EIB loan is expected to further improve the Promoter's maturity profile as well as the diversification of its funding sources.
Objectives
The aim is to contribute to the energy and climate policy objectives of the European Union and Greece. The project is expected to eliminate the electrical isolation of the affected islands, ensure a more efficient, reliable, and clean electricity supply compared to the current reliance on local diesel or heavy fuel oil power stations, improve supply security, increase the capacity for integrating Renewable Energy Sources in the region, and contribute to the continued economic development of the islands, particularly through tourism.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 1900 million
Total cost (Approximate amount)
EUR 2548 million
Environmental aspects
The overhead transmission line in Corinth falls under Annex I of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU). The combined environmental impact assessment for the overhead transmission line in Corinth, the two converter stations (Corinth and Kos), and the two submarine cables (Corinth to Kos) has been submitted to the Ministry of Environment and Energy for approval. The rest of the schemes fall under Category B of Law 4014/2011 and require Standard Environmental Commitments. The submarine cable between Rhodes and Karpathos requires a special ecological assessment in line with Law 4014/2011. All environmental permitting is expected to be obtained during appraisal. The impacts that can be typically expected relate to visual impact, vegetation clearance, collision and electrocution of flying vertebrates, electromagnetic fields, noise nuisance, and disturbances during construction, as well as the possible impacts on protected fauna and flora.
Procurement
The Promoter shall ensure that contracts for implementation of the project have been or will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.
Status
Signed - 5/02/2026