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€46.8M Electrification Project Begins for New Heraklion Airport

Crete's new Kasteli airport is moving closer to operation as work begins on its high-voltage electricity connection.

  • The Ministry of Infrastructure and Transport has officially authorized GEK TERNA to launch construction on the dedicated high-voltage grid powering the New International Airport of Heraklion at Kastelli.
  • State grid operator ADMIE said it could not undertake construction directly, forcing concessionaire DAHK S.A. and builder TERNA to take over engineering and procurement under strict deadlines.
  • The project budget stands at €33.1 million net, rising to €46,867,196.85 after indexation, unforeseen contingencies, and VAT—100% covered by the Greek State under public utility (OKO) rules.
  • Because of long procurement lead times for high-voltage equipment, a 25% down payment was mandated immediately to lock in materials and maintain the February 2027 opening schedule.

Crete’s new international airport in Kasteli has reached another decidedly unglamorous but essential milestone: the work needed to connect it to the electricity grid is getting underway.

The Ministry of Infrastructure has approved the works, which will be carried out by TERNA as part of the infrastructure and utility connections being delivered by GEK TERNA for the concession company, International Airport of Heraklion Crete S.A. (DAHK).

And, naturally, keeping a brand-new international airport powered comes with a fairly substantial bill.

The approved expenditure for the electricity connection is €33.12 million, with the cost to the Greek state rising to approximately €46.87 million after the applicable adjustments, contingencies and VAT.

The works became necessary after ADMIE, the Independent Power Transmission Operator, previously stated that it was unable to undertake construction of the connection works linking the new airport to Greece’s electricity transmission system. The responsibility for the required studies and construction therefore shifted to the project framework involving the concession company and TERNA.

The connection must be completed within a binding timetable, with officials stressing that procurement needs to begin early because some of the high-voltage equipment required for the project has long lead times. A 25% advance payment of the total cost is therefore предусмотрated following the signing of the agreement, with subsequent payments linked to progress and completion milestones.

Technical and Financial Breakdown

Because utility interconnections fall outside the private concession holder’s primary design-build obligations, the Greek State is legally responsible for funding public utility (OKO) works under Article 14.4.1 of the Concession Agreement.

Project ComponentTechnical and Financial Details
Net Base Cost€33,115,984.86
Total State Cost (inc. VAT & Revision)€46,867,196.85
ADMIE Supervision & Review Fee€1,796,726.12 (Reimbursed by State via DAIK)
Advance Payment25% upon contract execution (Required for high-voltage material orders)
Underground 150kV Network14 km total (Two distinct 7 km circuits)
Overhead 150kV Network22 km total across 72 new steel pylons
Pylon Base Footprints37 footprint pads covering ~108.5 dunams (10.85 hectares)
Access Roads20.7 km of access corridors across ~114.2 dunams

Infrastructure Blueprint

The electrification package involves a multi-stage engineering operation supervised directly by ADMIE to ensure compatibility with the National Electricity Transmission System (ESMHE):

  1. Underground high-voltage cables: Construction of a 14 km, double-circuit 150kV underground cable line.
  2. Horizontal directional drilling (HDD): A specialized 91-meter underground micro-tunneling operation under the under-construction motorway linking to the main 150/20 kV Airport Substation.
  3. Overhead grid rerouting: Modification of the existing 150kV Linoperamata–Ierapetra line, including the removal of legacy pylons (LII 100 & LII 101) and erection of 72 steel lattice pylons across two 11 km single-circuit spans.

Once construction is completed, inspected, and certified by ADMIE, ownership rights of the real estate and grid infrastructure will be transferred directly back to ADMIE for ongoing grid operation.

Categories: Crete Featured
Mihaela Lica Butler: A former military journalist, <a href="https://www.facebook.com/mihaelalicabutler">Mihaela Lica-Butler</a> owns and is a senior partner at Pamil Visions PR and editor at Argophilia Travel News. Her credentials speak for themselves: she is a cited authority on search engine optimization and public relations issues, and her work and expertise were featured on BBC News, Reuters, Yahoo! Small Business Adviser, Hospitality Net, Travel Daily News, The Epoch Times, SitePoint, Search Engine Journal, and many others. Her books are available on <a href="https://amzn.to/2YWQZ35">Amazon</a>
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