Decision on Great Sea Interconnector Linking Greece, Cyprus, and Israel Expected Next Month

The future of the Great Sea Interconnector, an undersea electricity cable linking the power grids of Greece, Cyprus, and Israel, will be determined next month.

Cyprus's Energy Minister, George Papanastasiou, announced that a ruling is expected in August regarding whether Cypriot consumers will bear the construction costs for the cable's four-year build.

The 1.9-billion-euro ($2.06 billion) project aims to end the energy isolation of Cyprus and Israel, offering consumers cheaper energy through increased power from renewable energy sources (RES). The European Union has committed 657 million euros in financing.

Initially, the Greek Independent Power Transmission Operator (IPTO) required Cypriot taxpayers to cover the construction costs to attract investors. However, the Cypriot energy regulator, CERA, rejected this condition. Papanastasiou stated that IPTO's revised calculations, submitted to CERA for reconsideration, indicate that the additional cost for Cypriot consumers would be minimal, at 0.6 euro cents per kilowatt hour over the construction period.

Progress on the project includes laying 40-50 kilometres (25-31 miles) of cable along the Mediterranean seabed, connecting Crete with Cyprus. Once operational, Cypriot consumers could see a 30%-40% reduction in energy prices.

In September, the Cypriot government will decide whether to invest 100 million euros in the project, pending a viability assessment. This interconnector is part of Cyprus' broader strategy to reduce reliance on crude oil and transition to cheaper, imported liquified natural gas (LNG) for power generation, which could cut greenhouse gas emissions by 40%-45%.

The LNG terminal project, however, faces setbacks. The Chinese-led CPP-Metron consortium recently withdrew from its contract to build the terminal due to financial disputes. President Nikos Christodoulides criticised the consortium's initial selection, citing its inability to complete the project.

Despite these issues, Papanastasiou is confident that the terminal can be completed within a year by using the same or new subcontractors. If legal delays continue to hinder the delivery of an essential LNG ship, the government plans to charter a similar vessel to start importing natural gas upon the terminal's completion.

Read more: Great Sea Interconnector

(Source: Associated Press)