Analysis Underway for Cyprus-Greece Subsea Power Cable Investment
In a recent development, the government of Cyprus has called upon Greece’s Independent Power Transmission Operator (Admie), the project promoter for the Great Sea Interconnector, to conduct a thorough cost-benefit analysis. This crucial step will provide Cyprus with the necessary data to make an informed decision on their potential €100 million investment in the ambitious subsea power cable project.
The Great Sea Interconnector, formerly known as the EuroAsia Interconnector, is a strategic initiative aimed at connecting the electricity grids of Cyprus, Greece, and Israel. With an estimated cost of €1.9 billion, the project is poised to revolutionize energy distribution in the region.
Energy Minister George Papanastasiou highlighted the need for an updated cost-benefit analysis due to the dynamic nature of the energy sector and the change in project promoters. The initial investment decision made on February 14 requires re-evaluation to reflect current economic conditions and potential shifts in cost-sharing between Cyprus and Greece.
Papanastasiou emphasized the importance of understanding the financial responsibilities that come with being a stakeholder, particularly in light of securing loans for the remaining €1.2 billion needed for the project after accounting for a €658 million grant from the European Commission.
The minister also pointed out that the primary goal of the Great Sea Interconnector is to reduce electricity costs for consumers in Cyprus, who are currently burdened with high prices. An updated analysis will clarify the benefits that Cypriot consumers can expect from this significant investment.
Last month’s meeting between Admie officials and the Cypriot finance minister underscored the urgency of Cyprus’ decision regarding the €100 million investment. Admie’s plans to establish a holding company for raising equity for the subsea cable project could see the Cypriot state becoming a shareholder, alongside Greece’s Admie, which is 51 percent owned by the Greek state and partly owned by the State Grid Corporation of China and other investors.
As stakeholders eagerly await the results of the cost-benefit analysis, the potential for enhanced energy cooperation between Cyprus and Greece through the Great Sea Interconnector continues to be a topic of significant interest in both countries.
