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Yet, with Greece's continued existence in the Eurozone now in question and austerity measures rife, the future of the wind feed-in tariff is far from clear for investors. He said the islands' wind capacity factors, at 30-35%, are well above European averages. Wind in Greece costs around half that, with a EUR90/MWh feed-in tariff on the islands (EUR80/MWh on the mainland). He points out that unlinked Mediterranean islands are paying around EUR170/MWh for wholesale electricity due to high dependency on subsidised oil-fired generation. "Still, the investment is reasonable and just might interest multilateral finance", he added.Īnother consultant, requesting anonymity, said that in less trying times, the project would be "unquestionably attractive". "It's hard to be optimistic given Greece's difficulties," said Eduard Sala de Vedruna, a senior analyst at IHS Emerging Energy Research. Despite over a year of development, Iberdrola-Rokas could offer no indication of how the project will be financed. Building, planned to start in 2014, is expected to be completed by 2017.īeyond that, detail is scarce. Overall, the company will lay 400 kilometres of powerlines across the three islands and seabed, the longest connecting all to the mainland along a 267-kilometre line from Lesbos. The project plans 306MW on the island of Lesbos, 150MW on Quios and 250MW on Limnos. Rokas, Iberdrola's Greek affiliate, has already delivered the environmental impact assessment (EIA) and the power interconnection - which accounts for 40% (EUR720 million) of the total estimated investment - has received broad approval from Greece's regulatory authority for energy.
It says the project will "reactivate local economies" through taxes, a 3% annual wind-power levy on billings and the creation of jobs.
The company claims the project to be the biggest combined renewables development and island power link worldwide. Reactions to the so-called Aegean link are mainly cautious, not helped by Iberdrola's vagueness on detail.
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