The planned GREGY electricity interconnector between Egypt and Greece is moving into a more detailed preparation stage. Engineering, environmental and seabed work is progressing alongside financing and power-purchase discussions. The project’s development includes technical preparation and commercial engagement running in parallel.
Procurement and onshore engineering work
Elica, part of Greece’s Copelouzos Group, has launched procurement procedures for onshore civil engineering in both countries. The same procurement process also covers a detailed survey of the proposed subsea cable route.
The onshore scope is paired with route-focused preparations for the interconnector’s offshore component. A detailed understanding of the cable alignment is being developed to support later engineering decisions. The programme is intended to feed into subsequent study milestones and contracting steps.
Marine surveys and environmental assessment
The marine programme will assess seabed conditions using geophysical and geotechnical surveys. It will also determine how the cable should be buried and protected along the route.
In parallel, a strategic environmental assessment is being prepared for the section between the converter stations. The assessment is linked to the proposed subsea route planning and supports the environmental workstream within the broader preparation phase.
Tender timeline and technical study completion
Bids are due in October, with contractors expected to be selected by the end of 2026. Technical studies are scheduled for completion in the first quarter of 2028. The schedule covers both engineering progress and preparatory steps needed for later commercial arrangements.
Alongside these technical timelines, commercial preparations are continuing without waiting for study completion. This includes efforts to move from early interest toward contractual commitments for financing and long-term electricity supply.
Financing interest, cooperation memoranda and pricing estimates
The project has reportedly signed 48 cooperation memoranda with companies and organisations in Greece and the Balkans. These counterparties are 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, bringing total investment including cable and generation assets to an estimated €13 billion. An AFRY study estimated that GREGY could reduce average Greek wholesale electricity prices by about €21/MWh, or roughly 25%. It also estimated that long-term buyers could potentially achieve savings of up to 45%.
Status on EU PCI/PMI list
The project has been included on the EU’s PCI/PMI list, supporting its political and financing position. Its next step will be converting preliminary lender interest and dozens of cooperation agreements into binding finance and bankable power-purchase contracts.
