ATHENS-Greek power grid operator ADMIE on Wednesday signed contracts with Prysmian, Nexans, Hellenic Cables and Siemens-Terna for a 1 billion euro ($1.14 billion) undersea cable, linking Crete to the mainland.
The project, which is expected to be completed by 2023, aims to allow oil-fired plants on the island of Crete to close and pave the way for building some 2,500 megawatts of new solar and wind power, the Greek energy ministry said in a statement.
Greece has already licensed some 2,000 of the 2,500 megawatts of additional renewable energy capacity that can be built on the island, which could help the country align with the European Union's goal of achieving net zero carbon emissions by 2050.
Greek households should eventually benefit from a 400 million euro cut in charges they pay via their electricity bills to subsidise energy supply to Crete.
Italy's Prysmian, Norway's Nexans and Hellenic Cables, with Sweden's NKT, will build two undersea cables for a total cost of 615 million euros.
Siemens and Terna will construct two converter stations and one substation for 370 million euros, the ministry said. ($1 = 0.8790 euros)
(Reporting by Angeliki Koutantou; editing by Barbara Lewis) ((firstname.lastname@example.org; +30 210 3376436; Reuters Messaging: email@example.com))