Admie submits investment request for Cyprus-Israel electricity interconnector

Nicosia, Cyprus. Greece’s Independent Power Transmission Operator, Admie, has submitted an investment request for the Cyprus-Israel electricity interconnection to the energy regulators of both countries.

The application advances the Great Sea Interconnector project under the European Union’s Trans-European Networks for Energy framework.

Regulatory process

The request follows the completion of a cost-benefit analysis and a proposal for cross-border cost allocation, which are required under EU rules.

The submission starts the formal assessment process by the energy regulators in Cyprus and Israel. They must jointly decide how the project’s costs will be allocated between the two countries and recovered through regulated revenues.

Studies and consultations

Admie said the studies were prepared after consultations with authorities in Cyprus and Israel, including the energy ministries of both countries, Cyprus’ Transmission System Operator and Israel’s system operator, Noga.

The assessments considered updated forecasts for electricity demand, renewable energy deployment, grid development and future energy system requirements.

According to Admie, the studies found that the Cyprus-Israel interconnection remains economically viable in all scenarios examined.

Project developments

The studies also found that the project would strengthen electricity supply security, support increased integration of renewable energy sources and further connect the eastern Mediterranean electricity market with the wider European grid.

The development follows an agreement under which French infrastructure investment group Meridiam became the majority shareholder in the GSI project company. It also follows a telephone conversation between Greek Energy Minister Stavros Papastavrou and Israeli Energy Minister Eli Cohen on advancing the Cyprus-Israel section.

Admie said it is continuing to work with competent authorities, transmission system operators and other stakeholders on the technical, regulatory and financing requirements for the project.

Following approval of the investment framework by both countries, the project is expected to proceed to a final investment decision, allowing financing arrangements to move forward.