GREGY: Who’s paying? Egyptian authorities are in talks with the Greek government about how to fund the planned 3-GW Egypt-Greece Interconnector(GREGY), a source in the Electricity Ministry told Enterprise. The initial investment required for the project stands at around EUR 4 bn, according to our source, who said that there are currently three options on the table.

Refresher: The planned electricity link will run almost 1.5k km from Wadi El Natroun directly across the Mediterranean to mainland Greece. It will have a maximum capacity of 3 GW and transmit only renewable energy generated in Egypt.

Scenario #1- The EU could cover some of the cost via a long-term soft loan: One of the options being considered is a EUR 1.5 bn long-term low-interest development loan from the EU, the source told us. The loan value is an initial estimation and could end up being higher or lower.

Scenario #2- Greece could stump up the full cost — on one condition: Another option on the table would see Greece fund the entire cost of the interconnector in exchange for discounted power, according to the source.

Scenario #3- Turning to the private sector: The last option is to secure the funding from Egyptian and Greek private-sector sources in exchange for a portion of the returns on the exported electricity, the source told us.

The EastMed pivot: The EU has been searching for new sources of energy to replace Russian oil and gas supplies, which have been all but cut off by Moscow in its sanctions war with the West. The Eastern Mediterranean has emerged as a key area for the bloc, which is looking to import greater quantities of Egyptian and Israeli gas, and access power generated by solar plants and wind farms in Egypt. GREGY is one of five proposed Egypt-Europe interconnectors currently on the drawing board or in discussion.

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