Release date: 7 July 2025
Promoter – Financial Intermediary
INDEPENDENT POWER TRANSMISSION OPERATOR SALocation
Description
The project will connect the island regions of Lemnos, Lesvos, Chios, Samos and Skyros to the mainland transmission grid through Nea Santa in Thrace to the north and Aliveri on Evia to the east. It will also link them to the Dodecanese islands grid via Mastichari on Kos to the south. The connection will primarily use 150 kV alternating current (AC) cable interconnectors and 150 kV gas-insulated substations (GIS).
Additionality and Impact
The Project will interconnect the North-East Aegean Islands, which currently rely on polluting oil-based generation, to the Hellenic Electricity Transmission System. It will enable the development and integration of additional renewable capacity (onshore and offshore), 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 good 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 project supports the energy and climate policy objectives of the European Union and Greece. It will end the electrical isolation of the islands concerned and provide a more efficient, reliable and cleaner electricity supply compared with the current reliance on local diesel or heavy fuel oil power stations. It will also improve security of supply, increase capacity for connecting renewable energy sources in the region and foster economic development on the islands, particularly through tourism.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 490 million
Total cost (Approximate amount)
EUR 1628 million
Environmental aspects
Most of the project components fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, which requires the competent national authority to determine the need for an EIA. 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 (Habitats 92/43/EC and Birds 2009/147/EC Directives)
Procurement
The EIB will require the promoter to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/23/EU / 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/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 - 17/12/2025