The planned GREGY electricity interconnector between Egypt and Greece has entered a more detailed preparation phase, with engineering, environmental and seabed studies advancing alongside financing and power-purchase discussions.
Project developer Elica, part of Greece’s Copelouzos Group, launched procurement procedures covering onshore civil engineering in both countries and a detailed survey of the proposed subsea cable route.
The marine programme will assess seabed conditions through geophysical and geotechnical surveys and determine how the cable should be buried and protected. A strategic environmental assessment is also being prepared for the route between the converter stations.
Bids are due in October, with contractors expected to be chosen by the end of 2026. Technical studies are scheduled for completion in the first quarter of 2028.
Commercial preparations are proceeding in parallel. The project has reportedly signed 48 cooperation memoranda with companies and organisations in Greece and the Balkans interested in buying renewable electricity under long-term agreements.
Greek banks and the European Investment Bank have indicated interest in around €4.5 billion of long-term funding for the interconnector. A further €5.2 billion could finance associated renewable generation in Egypt. The total investment, including the cable and generation assets, is estimated at around €13 billion.
An AFRY study estimated that GREGY could reduce average Greek wholesale electricity prices by about €21/MWh, or roughly 25%, while long-term buyers could potentially achieve savings of as much as 45%.
The project has been included on the EU’s PCI/PMI list, strengthening its political and financing position. Its next test will be converting preliminary lender interest and dozens of cooperation agreements into binding finance and bankable power-purchase contracts.
