The European Commission has approved a €9.56 million grant for the preparation of further studies for a 3 GW electrical interconnection that will link Greece’s and Egypt’s power systems.
Being developed by Elica Interconnector S.M.S.A, a member of the Copelouzos Group, the GREGY Project will transfer 100% clean energy produced from Egypt’s renewable energy sources to Greece, for the production of green H2 in the country, which will then be further transported to European countries.
The submarine electricity cable will be bi-directional and will have a total expected budget of €4.2 billion.
“Egypt has extremely high efficiency factors in solar and wind energy, which will be utilized to meet Europe’s ever-growing demand for green energy, especially in the context of the strategic effort to reduce dependence on Russian natural gas and enhance security of supply,” Copelouzos Group said.
The grant, approved by the competent European Commission agency on January 28, will be used for the preparation of the seabed mapping study (marine reconnaissance study) using a specially equipped vessel.
The first two studies included the desktop study, which determines the optimal routing of the submarine cable, and the comprehensive cost-benefit and technical analysis.
GREGY has been included in the EU’s 6th Projects of Common Interest/Projects of Mutual Interest (PCI/PMI) list of projects, as well as in the Global Gateway framework of the Union, which includes projects of high strategic importance for Europe.
The 3 GW of electricity that it will transfer will replace 4.5 bcm of natural gas per year and reduce CO2 emissions by 10 million tons per year, Copelouzos Group noted.
According to the company, the strategic importance of the project has also been officially recognized by the U.S., as the Committee on International Affairs of the House of Representatives of the U.S. Congress approved the Eastern Mediterranean Gateway Act bill to enhance connectivity and security in the Eastern Mediterranean, where GREGY was among the four projects mentioned as strategically important.