New €1.9 billion Greece–Italy subsea interconnection in the pipeline

Two nations are fortifying their energy ties, as Terna, Italy’s national grid operator, and Independent Power Transmission Operator (IPTO or ADMIE), Greece’s transmission system operator (TSO), have taken steps to move forward with a new high-voltage direct current (HVDC) link between the two countries to strengthen regional cooperation, boost energy security, and put the wind in Europe’s transition to greener sources of supply.

To this end, the duo signed a three-year memorandum of understanding (MoU) in Rome in the presence of Greek Prime Minister Kyriakos Mitsotakis and his Italian counterpart Giorgia Meloni as part of the Italy-Greece intergovernmental summit, outlining the main terms and conditions for the design and development of the Grita 2 electrical interconnection between Italy and Greece with an estimated investment of €1.9 billion.

IPTO sees this as a strategically important project that will reinforce the role of both countries as electricity hubs in the Mediterranean region, thanks to a transmission capacity of 1,000 MW, spanning approximately 300 kilometers in total, including around 240 kilometers of a subsea cable installed at depths of up to 1,000 meters. This electrical interconnection is anticipated to elevate the geostrategic position of both countries on the energy map.

The new submarine power link will operate in parallel with the existing 500 MW interconnection, which has been in service since 2002. The Grita 2 project, which is already included in the European TSOs’ Ten-Year Network Development Plan 2024, has been jointly proposed for inclusion in the second list of projects of common interest/mutual interest.

Manos Manousakis, IPTO’s Chairman & CEO, highlighted: “Electrical interconnectivity plays a vital role in advancing Europe’s climate goals and clean energy transition. The new energy corridor between Greece and Italy will not only expand the capacity for electricity exchange but also bolster energy security and enhance the efficiency of the integrated European electricity market, delivering tangible benefits to consumers in both nations.”

The Greek TSO is convinced that the new project will enhance market integration between the two countries, diversify sources of power supply, and play a key role in achieving Europe’s climate goals. The subsea cable will make landfall in the municipality of Melendugno on the Italian side, while the new converter station will be constructed in the municipality of Galatina, both located in the province of Lecce.

Giuseppina Di Foggia, Chief Executive Officer and General Manager of Terna, emphasized: “The new submarine power link between Italy and Greece will enhance energy security in southern Italy and facilitate efficient energy procurement by enabling new resources and maintaining energy exchange between the two countries.

“Operating alongside the existing interconnection, which has been in service since 2002, this project will further increase the efficiency of electricity transmission. We firmly believe that an interconnected European power system is key to ensuring a reliable and sustainable grid.”

Terna and IPTO will ink subsequent agreements governing the joint management of tendering processes for cable and converter station procurement, as well as the implementation of the infrastructure.

Greece is determined to up its electricity ante, as illustrated by the start of trial operations at another subsea interconnection development between the island of Crete and the Greek mainland.

The Crete–Attica electricity interconnection is scheduled to be put into operation at the end of May.