Saudi Arabia, Greece form SPV for interconnection project

Greece’s IPTO and Saudi Arabia’s National Grid will hold equal stakes at the firm.

Saudia Arabia and Greece established a special purpose vehicle (SPV), Saudi Greek Interconnection, to lead the feasibility study for the two countries’ electricity interconnection.

In a statement, Greece’s Independent Power Transmission Operator (IPTO) and Saudi Arabia’s National Grid said they will both hold a 50% stake in Saudi Greek Interconnection. The special purpose firm will be overseen by the markets’ respective energy ministries.

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“The Saudi Greek electricity Interconnection which will interconnect for the first time Saudi Arabia with the European continent, is the beginning of strengthening the Kingdom and European interconnection towards energy transition and utilization of Renewable Resources as the two countries stressed the importance of strategic cooperation between them in a number of issues of common interest in the field of energy, including the generation of electricity using renewable energy, the establishment of the power grid, and the export of electricity produced using renewable energy to Greece, and to Europe via Greece,” said National Grid CEO and the SPV’s Chairman of the Board Waleed Al-Saadi said.

“This project will enable the more effective use of renewable energy, access to sustainable electricity generation and improved security of electricity supplies,” he added.

The technical teams formed by IPTO and National Grid executives are looking into the maturation of the electrical interconnection and the project’s design parameters.