More specifically, from the statements of the Minister of Energy Giorgos Papanastasiou, it emerged that “the allocation of an amount of 25 million euros per year, strictly, for a period of 5 years, was approved as a subsidy for the corresponding increase that may occur in electricity bills for the right to recover costs by the interconnection construction period, i.e. from 1/1/2025 to 31/12/2029, so that consumers are not burdened by this increase. This amount will be disbursed from the fixed fund of the Republic and specifically from the pollutant rights auction system. The first installment of 25 million euros will be included in a supplementary budget.”
Before that, on September 10, in a meeting in Cyprus with PEN Minister Theodoros Skylakakis, the Greek side had proposed a 50%-50% sharing of the geopolitical risk instead of 63% in Cyprus and 37% in Greece in order to close the deal and to put the “Great Sea Interconnector” electrical interconnection on track.
In particular, Greece had proposed that in case of force majeure, the recovery of the expenses that have been incurred up to that moment should be 50%-50% from the two countries. The existing framework provides that the geopolitical risk would be shared with the same quota as the depreciation of the project, i.e. 63% by Cyprus and 37% by Greece.
The continuation of the negotiations would develop at a higher political level, specifically with today’s meeting of the President of the Republic of Cyprus, Nikos Christodoulides, with Prime Minister Kyriakos Mitsotakis.
In any case, it is clarified that the project has already secured funding of 657 million euros from the CEF (Connecting Europe Facility).
The project profile
The electrical interconnection of Greece – Cyprus – Israel will remove the energy isolation of the last non-interconnected state of the EU, contributing to the achievement of the high goals set by the European Union for renewable energy penetration by 2040.
At the same time, it will give Cyprus the opportunity to develop into a major energy hub of the Mediterranean, thanks to the exports of green energy to Europe through the cross-border electrical interconnections promoted by ADMIE.
Correspondingly, it will enable the export of electricity to Israel, which will be supplied by both the domestic renewable energy potential and the natural gas deposits it has.
The electrical interconnection of Greece – Cyprus – Israel is included in the Projects of Common Interest (PCIs), receiving a grant of 657 million euros from the European Commission. In order for the European Commission to proceed with such high funding of a cross-border project, it has carried out detailed cost-benefit studies, which have proven the benefit to consumers and the economic viability of the project.
The operation of the electrical interconnection between Greece and Cyprus will start in 2030.
What the government spokesman said
Mr. Marinakis emphasized that this is a very important project, both for Greece and Cyprus, for which the government wishes for a happy conclusion to the discussions. He emphasized that the subject of the negotiations between the two countries is exclusively the financial part of the project. “We are optimistic that there will be a positive outcome,” he added.
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