In a significant development for Cyprus' energy sector, the implementation of the Greece-Cyprus electrical interconnection, known as the "Great Sea Interconnector," is projected to reduce electricity costs for Cypriot consumers by at least 30% by 2030.
This finding is based on an updated cost-benefit analysis (CBA) conducted by Exergia in collaboration with the National Technical University of Athens.
The detailed study was presented to the Minister of Energy, Trade, and Industry of Cyprus, George Papanastasiou, with the president and CEO of IPTO, Manos Manousakis, in attendance. The interconnection project promises a substantial social benefit valued at 8 billion euros, vastly outweighing the construction costs of 1.9 billion euros, resulting in a net social benefit exceeding 6 billion euros.
The study's objective was to evaluate the economic advantages of the electrical interconnection of Cyprus via the Great Sea Interconnector compared to its isolated development. This assessment aligns with the European Green Deal's goal of achieving climate neutrality by 2050, targeting high penetration of renewable energy sources (RES) in Cyprus' energy mix, aiming for at least 70%-80% by 2040. The interconnection is expected to bolster Cyprus' energy autonomy through domestic clean RES production, which can be exported when domestic demand is surpassed.
Two scenarios were examined in the study:
1. Electrical Interconnection with Europe via Greece: This scenario involves connecting Cyprus to the European electricity market through Greece, making it the last non-interconnected EU state to join. This plan includes the limited installation of batteries.
2. Isolated Development of Cyprus' Electricity System: This scenario focuses on the development of Cyprus' electricity system independently, relying heavily on the installation of large battery units.
According to the IPTO update, the study concluded that the electrical interconnection scenario is not only the most economically and environmentally sustainable but also the most advantageous for both residential and corporate consumers in Cyprus.
(Source: Nafteboriki)
