The Great Interconnector Project, a crucial Greece-Cyprus-Israel undersea power interconnection, whose progress had stalled after disputes between Greece’s Regulatory Authority for Energy (RAE) and the Cyprus Energy Regulatory Authority (CERA) arose over contractual matters, was approved by the latter in a session on Friday.
Specifically, Cyprus’s energy regulatory authority adopted two changes, that will move the project forward. These are:
The start of cost recovery from Nexans, the French multinational cable manufacturer consigned with the laying of the cables of the Great Interconnector Project, 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.
