- 3-gigawatt undersea cable spanning 950km between Egypt and Greece
- €3.8 billion project backed by EU climate funds
- Transmits solar/wind power from Egypt’s Western Desert renewables hub
- Operational target set for 2028-2029 timeline
In a landmark energy partnership, Greece and Egypt have accelerated plans for the Mediterranean’s most ambitious electricity interconnection project. The 950-kilometer subsea cable will carry enough renewable energy to power 450,000 European homes annually, marking a strategic shift in EU energy sourcing strategies following geopolitical tensions.
Energy analysts highlight three critical advantages of this initiative: First, Egypt’s unmatched solar irradiation levels (2,900+ hours annually) and consistent Red Sea winds offer 35% higher generation efficiency than Central European sites. Second, submarine cable technology now enables 800kV transmissions with only 3% line losses over 1,000km. Third, the project aligns with EU’s REPowerEU plan to import 10 million tons of green hydrogen equivalents by 2030.
A regional case study demonstrates the potential: Morocco’s Xlinks project (3.6GW solar/wind to UK via 3,800km cable) secured £2 billion in UK government guarantees. The Egypt-Greece cable’s shorter route and EU political backing suggest stronger commercial viability. Industry sources indicate at least 12 global consortia have expressed interest in construction contracts.
The project’s phased implementation includes:
- 2024-2025: Seabed surveys and environmental impact assessments
- 2026: Manufacturing of HVDC converter stations
- 2027: Cable laying using specialized vessels like Leonardo da Vinci-class ships
Greek Prime Minister Mitsotakis emphasized the geopolitical dimension: “This cable does more than transmit electrons – it creates an energy security corridor less vulnerable to regional instabilities.” The statement references Europe’s urgent need to replace 155 billion cubic meters of Russian gas imports post-Ukraine invasion.
Financial innovation accompanies technical ambitions. The Copelouzos Group plans blended financing combining EU grants (20%), green bonds (45%), and private equity (35%). Projected returns of 8-9% IRR already attracted commitments from three sovereign wealth funds, according to Cairo-based financial analysts.
Beyond energy, the agreement includes workforce collaboration. Greece will issue 15,000 seasonal agricultural visas to Egyptian workers annually – a model patterned after Spain’s successful temporary migration pact with Morocco. Bilateral trade targets aim for €5.4 billion in non-energy exchanges by 2030.
