Greece vows to link Egypt to EU energy market via subsea cable

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ENERGY & UTILITIES

Greece, Cyprus and Egypt have signed a major agreement to connect their energy grids via a subsea cable at a moment when Europe is facing sky-high energy prices.

The Memorandum of Understanding was signed during the 9th Trilateral Summit between the three nations in Athens and will allow Egypt, a major producer of solar power, to supply electricity to the EU's energy market.

Following the talks, Greek Prime Minister Kyriakos Mitsotakis told reporters that "[Egypt's] link to Europe will be Greece.

"We are seeking diversification of energy sources, and Egypt can also become a provider of electricity, which will be produced mainly by the sun," he added.

The announcement comes a few months after a similar power grid connection agreement was signed between Greece, Cyprus and Israel via the EuroAsia Interconnector.

Read more: Cyprus, Greece, Israel ink deal for world's longest subsea interconnector

Both interconnections will allow the EU access to renewable energy generated in the sunny regions of North Africa and the Middle East and, crucially, will reduce the bloc's reliance on imports of natural gas from Russia - an issue that has become especially politically complicated in recent months.

The current global energy crunch has also hiked the price of oil, gas and other fuels, creating difficulties for citizens and businesses.

Mitsotakis described the project as a "bridge between Egypt to Europe, allowing [Cairo] to take on a key role in energy security at a time of major turbulence in the energy market."

Last week, Egypt and Cyprus signed a separate agreement to set up subsea interconnections, though exact details have yet to be worked out.

Egyptian President Abdel Fattah Al-Sisi called the deal "a preliminary step that brings us closer to the common goal to which our three countries aspire, namely future electrical interconnection with the rest of the European continent."

Read more: EU mulls measures to mitigate energy "price shock", says Commissioner

He added that the countries should build on the momentum created by the trilateral deal and forge ahead with an offshore pipeline that would carry gas from the Cypriot "Aphrodite" field to two Egyptian liquefaction facilities.

Cyprus President Nicos Anastasiades also joined the meeting in Athens, marking the ninth round of talks between the three countries’ leaders.

The Greek Prime Minister later tweeted about the agreement, describing it as a "beacon of stability in the Eastern Mediterranean".

Earlier this year, Greece brought forward its deadline for phasing out coal power to 2025, and the country's national energy plan aims for 61% of electricity demand to come from renewables by 2030.

The Greek government has been looking to expand energy cooperation across the Eastern Mediterranean region as it remains at odds with Turkey over maritime boundaries and drilling off the coast of Cyprus. Turkish vessels have been drilling for gas in Cypriot waters since 2019, actions which have drawn sanctions from the EU and ramped up regional tensions. 

Read more: Cyprus brands Turkey "pirate state" as EEZ drilling resumes

Mitsotakis said Ankara was continuing a hostile policy towards his country over the issue, saying that "Turkey’s aspirations at the expense of its neighbours in the eastern Mediterranean obviously represent a threat to peace in the wider region."

Turkey has accused Greece of being unreasonable in its demands for maritime mineral exploitation 

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