As of July 14, there has been a significant shift in Nicosia’s stance on the Great Sea Interconnector, an ambitious and technically challenging project to connect the power grids of Israel and Cyprus with Greece.
During a visit to Nicosia last week, the CEO of Greece’s Independent Power Transmission Operator (IPTO), Manousos Manousakis, presented a cost-benefit study to the Cyprus’ ministry of energy that aimed to reverse previous concerns by the latter, while touching on negative repercussions should the project be deemed non-viable.
Government sources in Athens this week countered previous criticism by citing minimal projected costs to Cypriot consumers from the project. Attention now turns to the Cyprus Energy Regulatory Authority (RAEK), which is tasks with reassessing its decision, earlier this month, on the interconnector cable and its viability.
RAEK had previously rejected imposing charges during the construction phase of the Great Sea Interconnector project, which would have allowed IPTO to recover investment costs.
On Monday, IPTO officials in Nicosia reportedly met with RAEK representatives to discuss a revision. Sources suggest RAEK’s decision may not witness an immediate revision, with an announcement expected in the coming weeks, possibly in September.
Recognizing the project’s geopolitical significance, the European Commission has designated the approximately two-billion-euro Greece-Cyprus electrical interconnection as a Project of Common Interest (PCI), approving 657 million euros in funding.
The Great Sea Interconnector (GSI) aims to end Cyprus’s energy “isolation” by linking the island republic’s grid with mainland Greece, thereby enhancing energy security and offering a reliable alternative energy source.
Recent Commission data reveals that electricity prices in Cyprus exceed those in the US and Japan, attributed to the island’s reliance on oil for electricity generation, the absence of natural gas in the power generation mix and limited use of renewable energy sources (RES), which could otherwise reduce costs.
Manousakis delivered an extensive cost-benefit study to Cyprus’s Ministry of Energy regarding project, forecasting a potential 30% reduction in Cypriot electricity bills by 2030 once operational.
The study concluded that the social benefits of the interconnection, totaling 8 billion euros, far outweigh its 1.9 billion euros construction cost, resulting in a net social benefit exceeding 6 billion euros.
The study evaluated two scenarios: the first involving integration of Cyprus into Europe’s electricity market via Greece with limited battery installation, and the second exploring isolated development with substantial battery unit installations.
It underscored that the electrical interconnection not only offers the most sustainable economic and environmental benefits but also proves most advantageous for Cypriot consumers—both residential and corporate alike.
Greek Prime Minister Kyriakos Mitsotakis will be in Nicosia in the coming days as part of the commemorations for the 50th anniversary of the barbaric Turkish invasion of Cyprus. During his meetings with Cyprus President Nikos Christodoulides, discussions are expected to include the topic of the electricity interconnection.
