Great Sea Interconnector progressing as planned, energy minister says

Nicosia, Cyprus. Energy Minister Michalis Damianos said on Sunday that the Great Sea Interconnector is progressing as planned and will pass through Cyprus.

He said work was proceeding normally on both the Cyprus-Crete section and the Cyprus-Israel connection, rejecting reports that the project would continue without Cyprus.

Investment and cost review

Damianos said that, following an agreement between President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis, the entry of a new investor into the project has progressed.

A new due diligence study is expected to determine the project’s exact cost and how it will be financed, he said.

The project’s viability will also depend on the amounts available for investment, Damianos added. If costs are significantly higher, further investors and funding sources will need to be secured for the project to proceed.

EU funding and consumer cost

The European Union has allocated €658 million to the project. Damianos said it must be established whether costs have increased and, if so, how the Great Sea Interconnector’s financial sustainability can be ensured.

He said Cypriot consumers will contribute to the project’s cost through electricity bills. Additional investors should therefore be found to limit the impact on consumers, he added.

Following French company Meridiam’s acquisition of a majority share in the project, foreign investors have also expressed interest in the Cyprus-Israel section, Damianos said.