Keravnos says Great Sea Interconnector cost could exceed €1.9bn

Nicosia, Cyprus. Finance Minister Makis Keravnos said on Tuesday that the Great Sea Interconnector could cost substantially more than the latest €1.9 billion estimate and that it remains uncertain whether the project would reduce electricity prices.

He told MPs that the government cannot decide whether to become an equity investor without updated financial data and a clear assessment of the project’s viability.

Additional costs

Keravnos said the €1.9 billion figure, often cited as the capital expenditure for the Great Sea Interconnector, covers only the subsea cable.

He said other costs, including insurance coverage, warehouses and maintenance works, must be included in the project’s final cost.

Impact on public finances and consumers

The minister said a state investment of this scale would affect public finances and spending margins set under EU rules.

He added that if the state does not invest in the project, consumers would bear the cost.

Keravnos referred to a 2017 estimate by Cyprus’ energy regulator, which put the cost to consumers of an operational Great Sea Interconnector at 3.7 cents per kilowatt-hour.

“We’re not sure that the price of energy would come down [with the GSI],” he told MPs.

Pending updated study

Keravnos also referred to an earlier feasibility study on the project, prepared by an American firm on behalf of the government, whose findings were not encouraging.

He said the government requested an updated study, the results of which are still pending.