Urgent search for electricity interconnector solution

Negotiations were underway on Monday to try and find a solution for the financial viability of the Cyprus-Greece-Israel Great Sea Interconnector project, sources said.

According to CNA, talks were ongoing over the weekend as well as throughout Monday trying to ensure the project remains viable amid efforts to inject finances into the project without burdening consumers.

Cyprus’ energy regulatory authority (Cera) rejected the idea of imposing a €0.6 cents levy on consumers per kilowatt hour starting January 1, 2025.

The levy would allow Greece’s Independent Power Transmission Operator (Admie) who is implementing the project, recover the €1.9 billion construction cost.

This has prompted concerns that the European Commission may withdraw its €657 million subsidy for the electricity connection between Cyprus and Greece through the Great Sea Interconnector project.

Admie has since stressed Cera’s decision makes the project unviable.

On Thursday, the finance ministry said it is not in a position to evaluate the mooted Cyprus-Greece electricity interconnector project as several parameters remain unknown, while the cost-benefit analysis provided by the project promoter got leaked to the media a day after being shared with parliamentarians.

It is said to conclude ‘socioeconomic benefits’ to Cyprus of anywhere from €7.2 billion to €8.2 billion over the next 25 years, if it links its electricity grid to the EU rather than remain isolated.