The GREGY interconnection project, aimed at linking Egypt and Greece, is emerging as a significant component of Europe’s energy strategy, particularly within the context of the Mediterranean region. The European Commission has underscored this initiative as a pivotal element in its Mediterranean Action Plan, which seeks to enhance collaboration between the EU and North African countries.
This ambitious project is designed to facilitate the transfer of renewable energy generated in Egypt to European markets through Greece. It represents a strategic move towards bolstering energy security while promoting a transition to low-carbon electricity sources. The urgency of this initiative has been amplified by ongoing geopolitical tensions in the Middle East, which have highlighted Europe’s reliance on external fossil fuel supplies.
Developed by Elica, a subsidiary of the Copelouzos Group, the GREGY project is currently engaging with various partners to establish robust collaborations with transmission operators and major industrial consumers. This approach aims to create sustainable partnerships beyond mere financial investments. Formal support has been established with ADMIE, and interest has been expressed from institutions such as the U.S. International Development Finance Corporation and the European Bank for Reconstruction and Development.
Technical and commercial preparations for the GREGY project are advancing steadily. Agreements have been reached with several companies in Greece and the Balkans to secure future electricity offtake, indicating an emerging demand in neighboring markets like Bulgaria, with potential interest from Serbia on the horizon.
On the financing front, discussions are progressing well, with lenders showing a willingness to provide up to €10 billion in funding for the project. If timelines are met, GREGY could become operational by 2030-2031, delivering electricity at rates projected to be up to €20/MWh lower than current wholesale prices, thereby potentially transforming regional energy dynamics.
