EBRD, ELICA sign grant agreement for Egypt–Greece electricity project
Baku, May 1, AZERTAC
The European Bank for Reconstruction and Development (EBRD) and ELICA INTERCONNECTOR S.M. S.A., a company of Copelouzos Group, signed a grant agreement on Wednesday to fund the first studies for the Egypt-Greece electrical interconnection project (GREGY), according to Ahram Online.
The GREGY project involves creating a vertical green energy corridor from South to North to transfer clean, competitively priced, and continuously flowing energy from renewable energy sources (RES). The energy will be shipped from Egypt, where it will be produced, through Greece to Europe.
Egypt's high solar and wind energy capacity will be used to meet Europe's increasing demand for green energy, reduce reliance on Russian natural gas, and enhance the security of energy supply.
The agreement concerns funding part of the cost of the first two studies of the GREGY project: the Desktop Study, which will determine the optimal routing of the submarine cable, and the comprehensive Cost-Benefit and Technical Analysis (CBA and Technical Analysis).
These studies are crucial for the maturity of the project and its fast implementation. GREGY has already been recognised as a major geopolitical and environmental project for Europe. The project's advisory support will be financed under the European Union's InvestEU Advisory Hub, of which the EBRD is a key implementing partner.
"We are delighted to support this project, which aligns perfectly with the EBRD's priorities such as market integration, green energy transition, and energy security. We are also very grateful to the European Union for their invaluable support in advancing this highly important regional project," said Grzegorz Zieliński, EBRD Director, Head of Energy Europe.
"GREGY is a bridge of sustainable development, energy independence, and peace. Through the Egypt–Greece interconnection, we are making a meaningful contribution to Europe's energy security, the decarbonisation of our energy systems, and the strengthening of the cooperation bonds between our peoples," Ioannis Karydas, CEO of the Renewable Energy and Energy Storage Business Unit of Copelouzos Group and CEO of ELICA INTERCONNECTOR S.M. S.A., said.
According to Karydas, the agreement confirms "commitment to play a leading role in projects that shape a better future for our region — to the benefit of the European market, the national economy and consumers."
The signing ceremony was attended by the Egyptian Ambassador to Greece, Omar Amer Youssef, who underlined the significance of the interconnection for strengthening Europe–Africa energy cooperation, supporting the region's economic prosperity, and advancing joint green growth.
GREGY project envisages establishing a green energy corridor that would allow clean electricity generated from Renewable Energy Sources along the North African coast to be transferred to Europe via a submarine cable.
This energy, which will meet the Greek industry's needs and produce green hydrogen, will be partially directed to EU countries, thus contributing to the energy transition by reducing natural gas consumption by 4.5 billion cubic metres annually and reducing carbon dioxide emissions by 10 million tons annually.
The GREGY project is on the first EU list of Projects of Common / Mutual Interest (PCI/PMI) and the EU's Global Gateway flagship infrastructure projects.
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