ECONOMY

EU approves subsidies for Greek electricity network projects

The European Commission has authorized the state aid of 36 million euros for investments in Greek electricity infrastructure after it found that the support to the seven projects aimed at improving and expanding the country’s power network complies with European Union state aid rules.

Those projects will contribute to ensuring the security of energy supply by improving the reliability of the national transmission system and thus enhance the functioning of the energy market. The Commission has concluded that the aid furthers major energy objectives and environmental policies of the EU without unduly distorting competition in the internal market.

Commission Vice President in charge of competition policy Joaquin Almunia said: «The aid helps Greece to expand and strengthen its electricity network. This will improve competition between electricity suppliers and benefit consumers, also by diversifying energy sources.”

The overall investment cost of the projects amounts to 112 million euros.

The 36 million euros of aid, financed by the Greek state and by EU structural funds, will notably fund the expansion of a 400 kV transmission line into East Macedonia and Thrace and the construction of an extra high voltage substation in the region. This will support an envisaged additional interconnection with Bulgaria and contribute to the interconnection of the Greek national electric energy transmission system to that of Turkey, thereby strengthening the interconnection of the EU with Asia via Greece.