A proposal to nationalise the electricity authority’s (EAC) grid and its operation is being considered, it was reported on Wednesday.
The idea, presented to Energy Minister George Papanastasiou and to the EAC board on Tuesday, concerns the conversion of the semi-state owned, regulated grid, into a full state-owned operation.
In tandem, the creation of a subsidiary company, which will invest €100 million as the state’s capital share towards the Great Sea Interconnector (GSI) on its behalf proposed.
What this means in essence is that the operation of the grid and the function of transmission system operation (TSO) would be taken away from the EAC, with the authority becoming purely an energy producer.
Spokesman Giorgos Petrou said the EAC would assess the proposal and give an answer by the end of November.
The grid infrastructure was an investment by the EAC and belongs to it, and any sticking points would likely hinge on this, Petrou told state broadcaster CyBC on Wednesday.
The EAC’s response is expected around the same time as the handover of an awaited study by the European Investment Bank (EIB) on the feasibility of the GSI and financial recommendation for how to materialise the project.
“There is no profit to the EAC from this manoeuvre. The state needed to find a way to create a company to invest in the GSI cable, it cannot do so directly,” Petrou explained.
The concept is based on the Greek model, where electrical production and transmission are also separate.
The subsidiary company in question would take over from the company set up by the GSI project promoter (Greece’s independent transmission operator, Admie) and becomethe long-term manager of the cable.
“We will cautiously examine the proposal and look at its pros and cons,” Petrou said.
“The EAC has the technical expertise and we have assigned study groups to investigate potential risks and challenges that could result from the GSI,” Petrou said, adding that the any potential restructure would simply involve a transfer of existing EAC personnel.
Meanwhile, the EAC has invested €100m in grid upgrades, additional substations, and rooftop solar installations in a fast-paced development, and is setting up an updated phone support line and procuring land for PV parks, Petrou said.
“For the moment the solutions to cheaper electricity are natural gas and PVs–the GSI will be effective in five or six years,” he said.
In a matter of days positive developments regarding the arrival of natural gas are also expected to be announced, Petrou said.
