The financial and operational advantages of the electricity interconnection between Crete and mainland Greece are becoming increasingly clear, as the island sharply reduces its dependence on oil-fired electricity generation.
According to new data from distribution system operator DEDDIE, electricity production from Crete’s oil-fired power plants declined by 91 percent during the first three months of the year. Between January and March, local thermal facilities generated only 26,500 MWh of electricity, compared with approximately 305,000 MWh during the same period last year.
The most dramatic declines were recorded at the beginning of the year. Oil-fired electricity generation fell to just 630 MWh in January and 211 MWh in February, while monthly production had exceeded 100,000 MWh during the corresponding months of the previous year. Output temporarily increased in March to around 26,700 MWh after the interconnection system underwent a planned 10-day maintenance shutdown ahead of the summer season. Once maintenance work was completed, electricity imported from the mainland resumed covering nearly all of the island’s energy demand.
The transmission connection reached full operational capacity at the end of December, making 2026 the first full year in which Crete is expected to depend almost entirely on electricity supplied through the national grid.
As a result, annual electricity production from the island’s oil-fired stations is projected to decline to approximately 100,000 MWh. Over the previous three years, average yearly generation from these facilities stood at roughly 1.55 million MWh, representing an estimated 94 percent reduction in oil-based electricity production.
The transition is also expected to significantly reduce public service obligation costs linked to maintaining oil-fired generation capacity on the island. These expenses are forecast to total around 100 million euros this year, compared with an annual average of approximately 550 million euros over the past three years. This creates projected yearly savings of nearly 450 million euros.
With total construction costs for the interconnection project amounting to 1.15 billion euros, the investment is expected to recover its value in less than three years through lower operating expenses and reduced system support costs, highlighting the long-term economic and environmental benefits of the project.
