In a landmark move, Greek Energy Minister Theodoros Skylakakis, and his cypriot counterpart, Giorgos Papanastasiou, signed a bilateral agreement to advance the “Great Sea Interconnector” (GSI) project Friday evening.
The formal agreement came a day after Cyprus’s energy regulatory authority made key changes to the regulatory framework of the cable and subsequently approved the project.
The Great Sea Interconnector aims to link the power grids of Greece and Cyprus, breaking Cyprus’s energy isolation and providing the island with a crucial alternative energy source.
Approval had stalled after disputes between Greece’s Regulatory Authority for Energy (RAE) and the Cyprus Energy Regulatory Authority (CERA) arose over cost and risk-sharing. 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.
According to OT, the bilateral agreement focuses on three main points, which both countries commit to implementing. These include the equitable sharing of geopolitical risks between the two nations and Cyprus’s participation in the project’s ownership structure. The third point, a regulatory decision on to the revenue cap, is set to be issued by RAE on Monday. Cyprus is also expected to carry out due diligence before finalizing its shareholder involvement.
The ambitious project has received significant support from the European Union, which recognized it as a Project of Common Interest (PCI) and allocated 657 million euros in funding for its advancement. The total cost of the investment is expected to reach 1.9 billion euros, with 2029 set as a target year of completion.
