The Great Sea Interconnector, a landmark Greece-Cyprus-Israel undersea power cable project , whose approval has stalled after disputes between Greece’s Regulatory Authority for Energy (RAE) and the Cyprus Energy Regulatory Authority (CERA) arose over cost and risk-sharing, was finally green-lighted by the latter on Friday.
Specifically, Cyprus’s energy regulatory authority adopted two changes that will clear the hurdles, namely:
The start of cost recovery from Nexans, the French multinational cable manufacturer consigned with the laying of the GSI cables, from 2025 until 2029, amounting to €25 million per year, which will trickle down to consumers before being refunded through state subsidies via electricity bills.
Additionally, the preferential capital return rate (8.3%) for the implementing body has been extended for 17 years.
Other changes related to cross-border cost allocation (CBCA) will be implemented at a later stage.
The Greek government was informed yesterday that a decision by the Cyprus Energy Regulatory Authority (RAEK) regarding key changes to the regulatory framework of the cable was expected today.
At this stage, there is no information on whether the RAEK session broached the issue of making any modifications to the contract linked to geopolitical risks, an issue that from the outset was unclear if it would be addressed today or deferred to another session.
Greek PM Kyriakos Mitsotakis and the President of the Republic of Cyprus, Nikos Christodoulides, met in Athens on Thursday and reached an understanding to iron out any pending differences.
