Cyprus’ decision on investing in the Great Sea Interconnector project will hinder whether the cost-benefit analysis is approved, it was reported on Wednesday.
Speaking to CyBC in the morning, Energy Minister George Papanastasiou said the final decision on investment in the project will be made by the end of the summer.
He said the Energy Regulatory Authority (Cera) decided on Tuesday not to impose any financial burden on Cypriot consumers before the completion of the project.
The decision, he added, may be in favour of the consumer, but it is likely to cause problems in relation to the project.
Papanastasiou said that the first reaction from the European Commission is that there may be difficulties in the sustainability of the project following Cera’s decision.
He also said a similar reaction is expected from the Greek government, whose independent power transmission operator (Admie) is the promoter for the project.
He added that an Admie delegation will be in Cyprus on July 11 for consultations and for the delivery of the cost-benefit study of the project.
The Great Sea Interconnector – formerly the EuroAsia Interconnector – is the commercial name given to the mooted undersea cable linking the grids of Cyprus, Greece and Israel.
In previous statements, Papanastasiou said the cable project – costed at €1.9 billion – is expected to go operational in 2029. Given the multiple benefits that come with it – unlocking capacity for renewables – the expenses should be paid off quickly after it goes live.
As it stands, Cyprus will bear 63 per cent of the cost, and Greece 37 per cent. This is because the benefits to Cypriot consumers are far greater.
