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> Economy

Uncertainty over the new Greece-Italy cable: Italian energy regulator calls for a review of timeline and costs

Arera calls for priority to be given to the northern border, while expressing strong reservations about the extension to the southern lines with Greece and Tunisia

Newsroom August 12 03:22

As Athens and Rome push for the creation of a new electrical “corridor” between Greece and Italy, Italy’s energy regulator Arera is sending a clear message that the immediate priority is the country’s northern interconnections.

In a recent submission to the operator of the Italian transmission system Terna, Arera called for priority to be given to the projects deemed most cost-effective, namely the expansion of interconnection capacity to the north by at least 2.6 GW. For the southern lines – with Greece and Tunisia – the authority expresses significant reservations, especially regarding the time horizon of the benefits for Italy.

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Positions on the timetable

The new Greece-Italy interconnection, with a capacity of 1,000 MW, is planned to be completed between 2033 and 2035. However, according to Arera, “substantial benefits” for Italy are expected only after 2040, leading the authority to recommend a review of the timetable.

The issue of costing is also on the table, as Arera is asking for additional analysis. In the documents submitted by Terna for the selection process of this year’s PCI/PMI projects, the estimate reaches 1.9 billion euros, while in the 10-year programs of ADMIE and ENTSO-E the corresponding amount is 1.25 billion euros.

The figure of 1.1 billion euros is 1.1 billion euros.

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