Italy and Greece Sign 2 Billion Euro Deal for New Electricity Interconnector
Italian power grid operator Terna and its Greek counterpart IPTO have sealed a significant agreement, valued at nearly 2 billion euros ($2.2 billion), for the construction of a new undersea electricity interconnector linking Italy and Greece. The deal was finalized following a summit between Italian Prime Minister Giorgia Meloni and Greek Prime Minister Kyriakos Mitsotakis at Rome’s historic Villa Doria Pamphili, with the participation of ministers from both nations.
During a press briefing, Prime Minister Meloni emphasized the strategic importance of the Mediterranean region in global dynamics, highlighting the geographical advantage it offers as the shortest route between the Atlantic and the Indo-Pacific. The agreement comes in the wake of a recent major blackout in Spain and Portugal, underscoring the need for enhanced grid resilience and diversification of energy routes.
The new high-voltage interconnector, named GRITA 2, will boast a transmission capacity of up to 1,000 MW and cover a total distance of around 300 km, including approximately 240 km of subsea cable reaching depths of up to 1,000 meters. Terna stated that the project will play a crucial role in meeting decarbonization targets and solidifying Italy and Greece’s positions as key electricity hubs in the Mediterranean. The joint investment by the two companies is set at 1.9 billion euros.
In addition to the electricity interconnector, Italy and Greece are also collaborating on railway safety initiatives. A deal was reached between Italy’s railway operator Ferrovie dello Stato (FS) and the Greek transport ministry to enhance railway safety in Greece, particularly following a tragic train accident in 2023 that claimed 57 lives. The agreement signifies a renewed partnership between the two countries, with Greek Prime Minister Mitsotakis emphasizing the importance of rebuilding trust and cooperation in the aftermath of such a tragedy.
Greece’s Hellenic Train operates under the umbrella of Italy’s FS, further strengthening the ties between the two nations. The developments in energy and transportation infrastructure signify a deepening of the bilateral relationship and a commitment to fostering mutual growth and cooperation.
Overall, the multi-billion-euro deal between Italy and Greece marks a significant milestone in enhancing energy security, promoting sustainability, and fostering closer ties between the two Mediterranean nations. The collaborative efforts in the energy and railway sectors are poised to bring tangible benefits to both countries and contribute to the broader European energy landscape.
Source: Reuters