The payment of €25 million by the Republic of Cyprus for the Great Sea Interconnector (GSI) electricity interconnection project is tied to the Greek Government issuing a NAVTEX before the end of October, Energy, Commerce and Industry Minister Michalis Damianos said. He said the Government intends to pay the agreed amounts as the project progresses.
Speaking after presenting his ministry’s 2027 budget to the House Finance Committee, Damianos said the commitment to pay €25 million concerns a project that is moving forward, not one that remains pending.
At the committee, the minister said the Cyprus Energy Regulatory Authority (CERA) has so far recognised €82 million in expenses out of the €302 million requested by the project’s implementing body, ADMIE. He added that the Government would proceed with the €25 million payment from the state budget and that the European Investment Bank’s (EIB) study on the project is also under way.
Mr Damianos clarified that the burden on Cypriot consumers through electricity bills will begin once the project is completed and electricity is being transferred to Cyprus. The share attributable to Cypriot consumers is expected to be repaid over a period of 30 years.
“If electricity does not come to Cyprus, we will not pay,” he said.
Referring to the possibility of an increase in costs, the minister said additional resources would have to be sought, possibly from investors or funds, or through EIB financing. He noted that commitments to the project have been in place for years, as European funding had been requested. He added that the Government had proceeded with an agreement, without going into the legal aspects of the case, on which, he said, the Legal Service would give its position.
Geopolitics at hand
Damianos described the GSI as important both for electricity supply adequacy and for geopolitical reasons, while acknowledging the difficulties and geopolitical risks associated with the project. He also said Nicosia was being fully briefed by Athens on developments, and noted that Greece, France and French interests connected with the project play a role in relation to its protection.
On the possibility of the state taking part in the project’s share capital, the minister said the issue would be examined at a later stage, after the relevant study is completed.
Speaking more broadly about energy projects, Mr Damianos said the Government intends to proceed with both the GSI and the natural gas terminal at Vasilikos, which, he noted, is progressing according to schedule. He added that the aim is to secure natural gas for Cyprus before 2030, when EAC generators are expected to be withdrawn. This would help reduce electricity generation costs through lower fuel prices, lower emissions and stronger competition.
Source: CNA
