GREECE Trends and Developments Contributed by: Aris Papaspyridis, Virginia Kokios and Konstantinos Kounelis, AP Legal
Domestic interconnectors The largest energy transmission investment in Greece to date is the Crete–Attica Electrical Interconnection project, a 1 GW high-voltage direct-current (HVDC) subsea cable. Developed by Ariadne Interconnection SA, a subsidiary of Greece’s electricity transmission system operator IPTO (Independent Power Trans- mission Operator SA), the project not only enhances energy security but also paves the way for large-scale renewable energy development on the island, enabling large-scale solar and wind projects to connect to the national grid. This enhanced connectivity is expected to ignite a surge in M&A activity across the Cretan renewables market among domestic and international investors, positioning Crete as one of Greece’s most dynamic new hubs for clean-energy investment. The North-East Aegean Interconnection, a EUR1.63 billion project promoted by IPTO and co-financed by the European Investment Bank (EIB) is progressing, marking an important step in Greece’s ongoing effort to integrate its island grids with the mainland network. The scheme will connect the islands of Lemnos, Les- vos, Chios, Samos and Skyros to the mainland trans- mission grid via Nea Santa in Thrace and Aliveri in Evia and further link them to the Dodecanese network through Mastichari in Kos. Using 150 kV alternating current submarine cables and gas-insulated sub- stations (GIS), the interconnection will eliminate the islands’ electrical isolation, replace oil-based genera- tion, and expand capacity for renewable energy inte- gration, while strengthening reliability and supporting Beyond domestic upgrades, Greece is pursuing a series of cross-border interconnections that are trans- forming the country into a regional energy hub. Key initiatives include: • the EUR2 billion GR.ITA 2 project between Terna Energy, IPTO, and the Italian national grid operator; • the EuroAsia Interconnector linking Greece, Cyprus and Israel; and • the GREGY project connecting Greece with Egypt to import renewable electricity from North Africa. local economic development. Cross-border interconnectors
These large-scale infrastructure developments are attracting strong interest from infrastructure funds, as well as sovereign investors seeking long-term expo- sure to regulated energy transmission assets and cross-border electricity trade. AI factories Another important project is the development of the Greek AI factory named “Pharos”, which is part of the EU’s AI factories initiative and focuses on sustainabil- ity as one of its pillars, along with health and culture/ languages. Pharos aims to create an ecosystem of AI innovation, research and industry support (especially for SMEs) in Greece, focusing on sustainability and energy, the environment, and climate-related chal- lenges. This points towards large-scale energy and infrastructure projects involving AI tools, data analyt- ics, digital twin infrastructure, predictive maintenance, grid optimisation, asset performance monitoring, etc. In parallel, PPC SA has submitted a proposal to the EU for the construction of an AI gigafactory in West- ern Macedonia. Designed and optimised specifically for the needs of AI, it will integrate more 100,000 advanced AI processors. Gigafactories will focus on energy-efficient infrastructure, supply chain security and AI-powered automation, strengthening Europe’s industrial autonomy. Outlook Greece’s energy and infrastructure M&A market has demonstrated notable resilience and growth momen- tum throughout the past year. Despite economic pres- sures and regulatory challenges, the market contin- ues to attract substantial domestic and international investment, driven by strong political commitment and an increasingly mature renewable energy framework. Strategic moves by major players such as PPC SA, Motor Oil Hellas and HELLENiQ ENERGY underline the pace of corporate transformation and the align- ment between private capital and national decarboni- sation goals. M&A activity across the renewable sector is evolving beyond traditional asset acquisitions toward strategic partnerships and cross-sector integration. The expan- sion of the solar PV market, continued investment in onshore wind, and the emergence of offshore wind
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