IPTO Capital Increase Will Secure Major Power Projects, CEO Says

Greek power grid operator IPTO will use a coming €1 billion capital increase to advance major domestic and international projects, Chairman and Chief Executive Officer Manousos Manousakis said. The company, known as Admie in Greece, announced the initiative after receiving a letter from Energy Minister Stavros Papastavrou asking it to begin the process of selling new shares. Each shareholder will participate in proportion to its current holding.

The Greek state holds a 51% stake in IPTO, while China's State Grid owns 24% of the company. The capital increase aims to create a secure environment for the implementation of new major projects that are crucial for the energy architecture of Greece and the European Union, according to Manousakis.

One of IPTO's key projects involves linking islands in the east and north Aegean Sea to the Greek mainland, with remaining capex requirements at €4.2 billion. The company is also working on a second interconnection with Italy, valued at €2 billion, and a power cable linking Israel, Cyprus, and Greece, valued at €1.9 billion.

Why Did This Happen?

Energy Minister Papastavrou emphasized that energy has economic, geopolitical, and national security dimensions. He described the reinforcement of the electricity transmission network as a decision of a strategic nature. The need for such a capital increase reflects the growing importance of strengthening energy infrastructure in the region.

What Are the Key Projects?

The funding will be used to develop the mainland grid and support critical investments in both physical and digital resilience. This includes the €4.2 billion project to connect Aegean islands, a €2 billion initiative for a second interconnection with Italy, and a €1.9 billion cable linking Israel, Cyprus, and Greece.

The Aegean islands project is a major undertaking aimed at improving energy security and reducing reliance on external sources. The second interconnection with Italy will enhance cross-border energy trade and redundancy. The Israel-Cyprus-Greece cable will further integrate regional energy markets.

What Are Analysts Watching Next?

Investors will be monitoring how the capital increase is executed and whether the projects are completed on schedule and within budget. The success of these projects will have significant implications for Greece's energy security and its role in the European Union's energy strategy.

The involvement of the Greek government and State Grid in the capital increase also raises questions about the geopolitical dynamics in the region. With energy infrastructure increasingly seen as a strategic asset, the project's progress will be closely watched by both domestic and international stakeholders.