GREGY interconnector builds momentum as EU targets renewable power corridor from Egypt via Greece

Europe’s push to diversify electricity supplies is increasingly tied to cross-border infrastructure, and the GREGY interconnector linking Egypt with Greece is moving closer to that goal. The European Commission has highlighted the project as a key element within its Mediterranean strategy, placing the planned power link between North Africa and Europe at the center of broader cooperation efforts.

The initiative is featured in the Pact for the Mediterranean Action Plan, a framework designed to strengthen coordination between the EU and partner countries across North Africa and the Middle East. For investors and utilities alike, that matters because it signals policy alignment behind a specific corridor—one intended to move renewable electricity generated in Egypt toward European demand through Greece.

A renewable supply alternative amid supply-risk concerns

GREGY is presented as a strategic step to improve energy security while accelerating the transition to low-carbon power. The project’s core proposition is delivering Egyptian renewable generation into European markets via Greece, offering what developers describe as a long-term alternative to fossil fuel imports.

Its growing relevance comes against a backdrop of ongoing geopolitical instability in the Middle East, which has again underscored Europe’s exposure to supply disruptions. In that context, a dedicated transmission pathway for non-fossil generation could reduce reliance on more volatile import flows—at least in principle—if timelines and commercial arrangements hold.

Developer approach: partnerships with grid operators and industry

The project is being developed by Elica, part of the Copelouzos Group. Elica says it is currently in discussions with multiple potential partners, focusing on building long-term collaborations with transmission operators and major industrial consumers rather than depending solely on financial investors.

Support has already been formalized through cooperation with ADMIE. Interest has also been expressed by institutions including the U.S. International Development Finance Corporation and the European Bank for Reconstruction and Development.

Commercial progress across Greece and neighboring markets

Preparations are underway on both technical and commercial fronts. Agreements have been signed with numerous companies in Greece and the Balkans to secure future electricity offtake, while demand is beginning to emerge in neighboring markets such as Bulgaria. Expectations extend further, with Serbia viewed as a possible next step.

Financing talks point to scale—and pricing impact

Financing discussions are also advancing. Lenders have indicated readiness to provide up to €10 billion in funding, according to the project’s current update. If completed on schedule, GREGY could become operational around 2030–2031.

The developer estimates that delivered electricity prices could be up to €20/MWh lower than current wholesale levels. If realized, that prospect would not only affect regional procurement costs but could also influence how regional energy markets price supply as new cross-border volumes come online.