Cyprus mulls joining Great Sea Interconnector
Cyprus is considering participating in the ambitious Great Sea Interconnector project, formerly known as EuroAsia, according to statements from government officials. The proposal, jointly submitted by the ministers of energy, commerce and industry, George Papanastasiou, and finance, Makis Keravnos, signals Cyprus’ readiness to join forces with Israel and Greece in the massive project.
Papanastasiou emphasized the culmination of years of effort: “The Republic of Cyprus is reaching today, after many years of the project, a point where the ministers of energy and finance are able to put a proposal to the cabinet for the participation of the Republic of Cyprus.”
The Great Sea Interconnector seeks to interconnect the national electricity transmission networks of Cyprus, Israel, and Greece via undersea cables. With a capacity of 2,000 megawatts and bidirectional capabilities, the project aims to bolster energy security and facilitate the exchange of electricity between the participating nations.
Under the proposed arrangement, Cyprus stands to benefit from 66% of the electricity, while Greece would receive the remaining 34%. This allocation is expected to fortify Cyprus’ energy independence and enable increased integration of renewable energy sources. Papanastasiou highlighted the strategic significance of Cyprus’ involvement, stating, “Cyprus is now becoming a geostrategic hub because it will be located between the electrical flows of Israel, Greece, Europe.”
The project’s implementation is already under way, with initial payments made by Greece’s Independent Electricity Transmission operator (ADMIE). Nexans, the company responsible for constructing the cable, is leveraging its expertise to navigate challenging terrain and deep waters. While the exact financial commitment from Cyprus remains under discussion, options include utilizing funds from the Recovery and Resilience Fund or securing loans of up to €100 million.
Reflecting on the project’s evolution since March 2023, Papanastasiou acknowledged the pivotal role of the new implementing body, expressing confidence in its ability to deliver results.
In parallel, discussions are ongoing regarding Cyprus’ potential 25% share in the power cable. Positive signals from recent studies conducted by DNV suggest favorable prospects for Cyprus’ strategic plans.
