Nicosia, Cyprus. The Cyprus-Greece great sea interconnector project remains a strategic priority and has not been suspended, Energy Minister Michalis Damianos said on Tuesday. He said future government decisions would be based on updated economic data expected later this year.
Project status and importance
Speaking on Omega, Damianos said the GSI remains important for Cyprus’ energy security and electricity supply, particularly because the island is the only EU member state without an electricity connection to another country.
He said the interconnector is currently very important for the adequacy of the system and added that an electrical link with neighbouring countries would allow Cyprus to continue accessing power when needed.
Study on cost and viability
Damianos said a due diligence study commissioned by the project promoter and submitted to the European Commission is expected to be completed before the end of the year.
He said the study is intended to determine the project’s actual cost and provide updated data on its economic viability.
Funding and cost concerns
According to Damianos, the project was initially estimated at €1.9 billion, with €658 million in EU funding.
He said the remaining €1.25 billion would be shared between Cyprus and Greece, with Cyprus expected to bear 63 per cent of the cost because it would gain the greatest benefit from the interconnection.
Damianos said the financial burden would ultimately be reflected in electricity bills over several decades and that key questions remained unresolved.
He said it was necessary to determine whether the GSI would cost only €1.9 billion and how much the price of electricity would increase.
Decision-making process
Damianos said the decision to seek a fresh assessment followed discussions between President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis.
