ADMIE: €3.7B Relief for Consumers via Island Grid Connections by 2034

The full integration of Greek islands into the mainland electricity system by ADMIE is expected to generate a net benefit of €3.7 billion for consumers between 2026 and 2034. With the Cyclades fully connected and Crete doubly linked to Attica and the Peloponnese, the Universal Service Obligations (ΥΚΩ) savings are projected at €550 million annually until 2030.

After 2031, with the inclusion of the Dodecanese and the Northern Aegean islands, annual savings are expected to nearly double to €1 billion, as ΥΚΩ charges drop sharply and the transition from mazut fuel to environmentally cleaner diesel will mitigate potential electricity bill increases.

Economic and Technological Impact

The average annual net benefit to consumers is estimated at €416 million, since ΥΚΩ savings exceed System Usage Charges for the same period. This estimate accounts for the cost of keeping conventional units in cold standby and the full replacement of mazut with diesel, which is nearly three times as expensive.

Total ΥΚΩ savings are projected at around €7 billion by 2034, almost equal to ADMIE’s ten-year investment budget of €7.5 billion, highlighting the rapid payback of these projects and strengthening Greece’s geostrategic position in the Mediterranean energy landscape.

Political Subtext

This interconnection is not just a technical project but also a political tool:

• It provides the government with a strong bargaining chip vis-à-vis energy suppliers and international investors.
• Lower ΥΚΩ charges act as a social and political legitimization tool, reducing the financial burden on households.
• The key challenge now is leveraging technological potential for renewables, batteries, and smart grids, giving Greece autonomy and competitiveness within the European energy sector.

ADMIE’s projects demonstrate how clean infrastructure contributes to both economic and political power. The €3.7 billion in consumer savings by 2034 proves that investments in grid interconnections and clean technology are not costs but levers of strategic and technological influence, with direct benefits for citizens and for Greece’s position in the region.

Source: pagenews.gr