Μake us preferred on Google Plans for a major electricity link between Greece and Germany have advanced with the completion of a preliminary feasibility study prepared by Greece’s Independent Power Transmission Operator (IPTO) in cooperation with Grant Thornton.
The project could create a new electricity corridor between southeastern and central Europe, allowing Greece to export power generated from renewable energy sources (RES) to Germany while importing electricity when domestic production falls short.
The study’s findings point to potential benefits not only for the two countries but also for the wider European electricity system. However, the project remains at an early stage and is still far from a final investment decision. It can now proceed to a more detailed technical and economic assessment.
Speaking at the Green Deal Greece 2026 conference, organized by the Technical Chamber of Greece, Konstantinos Tsirekis, IPTO’s director of system strategy and development planning, said the interconnection had already been included in the 10-year European electricity network development plan prepared by the European Network of Transmission System Operators for Electricity (ENTSO-E).
Two-way electricity flows between Greece and Germany
Georgios Messinis of Grant Thornton presented the study’s main findings, describing how the connection could operate in both directions.
During periods of strong solar power generation, Greece could export substantial amounts of electricity to Germany. Conversely, when domestic production is insufficient to meet demand, particularly in the evening after solar generation declines, Greece could import electricity generated by wind farms in the North Sea.
The potential value of the project extends beyond electricity trading between the two countries. Greater cross-border flows could improve the operation of broader parts of the European electricity market by making better use of available generation and helping balance differences between national power systems.
How to share the €15 billion investment cost
One of the main challenges identified in the study concerns how the cost of the project would be distributed.
Although Greece and Germany would finance the interconnection, its benefits could extend to other European countries through cross-border electricity flows. Messinis said the existing framework does not adequately address how costs should be shared when a project benefits countries beyond those directly involved in its construction.
The estimated construction cost of the Greece-Germany link could reach €15 billion. According to Messinis, projects of this scale, whose effects extend beyond national borders, require a different approach to calculating and allocating investment costs.
Greece plans a wider network of international connections
The proposed German link is part of Greece’s broader effort to expand its international electricity connections.
New interconnections with neighboring countries, including Turkey and Albania, are being promoted with a target horizon of 2031. A second electricity connection between Greece and Italy is scheduled for completion in 2033 and is expected to triple transmission capacity between the two countries.
Work is also continuing on the Great Sea Interconnector, which aims to link Greece, Cyprus and Israel.
IPTO is additionally examining a possible connection with Saudi Arabia and supporting a separate Greece-Egypt project developed by Elika. Tsirekis confirmed the operator’s interest in taking an equity stake in the Egypt link, which would add 3 gigawatts to Greece’s international electricity transmission capacity.
IPTO outlines €9 billion investment program
The scale of the planned infrastructure upgrades is reflected in IPTO’s 10-year development program, which is currently under public consultation and includes investments of approximately €9 billion.
A central priority is completing the connections between Greece’s islands and the mainland electricity grid.
The fourth and final interconnection of the Cyclades island group is expected to be completed by the end of 2026. Competitive procedures are underway for projects in the Dodecanese and northeastern Aegean, with completion targeted by 2030.
For the Dodecanese project, a €1.4 billion contract covering the cable section is expected to be signed in the coming days. The evaluation of converter stations is also progressing, while approval from the Court of Audit for the framework agreement covering submarine cables remains pending.
For the second interconnection project, an environmental impact assessment is expected to be submitted in the coming weeks. The two sides have agreed to launch tenders in the summer of 2027.
Renewable energy projects face grid constraints
The rapid expansion of renewable energy in Greece is increasing the need for new infrastructure and better coordination between electricity generation, demand and network capacity.
According to figures presented by Tsirekis, renewable energy projects already operating or holding secured grid connection terms amount to approximately 33.7 gigawatts. Of that total, 20.7 GW is already in operation, while the remainder has secured connection terms.
A further 48 GW of proposed renewable energy projects remains in IPTO’s assessment queue.
The scale of the pipeline contrasts with domestic electricity demand, which reaches approximately 11 GW during peak periods and falls to 6–7 GW for many hours of the day.
Energy storage capacity targeted at 4 GW by 2028
The Environment and Energy Ministry is also seeking to accelerate energy storage projects, which are considered essential for integrating larger amounts of renewable electricity into the grid.
Despoina Paliarouta, the ministry’s secretary-general for energy, said the goal is for storage projects with a combined capacity of 3–4 GW to receive final grid connection offers by the end of 2028.
A ministerial decision setting priorities for grid connection terms is expected to be signed within the week.
Installed capacity from operational energy storage facilities has now reached nearly 700 megawatts, up from just 32 MW in March. Capacity is expected to rise to 1 GW by the end of 2026 and 1.5 GW by mid-2027.
New rules under consideration for renewable energy cuts
The ministry is also working on a mechanism to redistribute renewable energy curtailments, with the question of whether producers should receive retroactive compensation still under consideration.
Paliarouta said a proposal is expected to be submitted to the ministry’s political leadership by mid-December, with an initial comprehensive outline of the mechanism targeted by the end of the year.
At the same time, the ministry is consulting with the European Commission on a new framework for operating support for renewable energy projects. The approach under consideration would differentiate incentives according to technology and investment size.
Particular attention is being given to smaller solar installations built in previous years that are now affected by production cuts. A transitional support model is being discussed for these projects, potentially involving advance payments of operating subsidies for a specified period.
Discussions are continuing with representatives of renewable energy producers and the Hellenic Bank Association.
