Nicosia nears linkup deal with Athens
Discussions among the parties involved in the Crete-Cyprus electricity interconnection project appear to be advancing following a recent meeting led by the president of Cyprus. The focus is on addressing concerns raised by the Cypriot side to finalize the agreement.
The Greek side sent the final text of the agreement to Nicosia on Wednesday night, and the Cypriot response is awaited. Sources suggest that if everything proceeds as expected, the agreement could be officially announced on Friday. This would enable the Cypriot cabinet to make a political decision, with the Cypriot energy regulator (RAEK) then addressing the remaining regulatory issues.
Cypriot Energy Minister George Papanastasiou has also emphasized the project’s priority for Israel, noting its potential to enhance regional energy security.
Key issues include addressing geopolitical risks and recovering the 125-million-euro project cost over five years. Nicosia is reportedly committed to a €100 million equity stake in the Great Sea Interconnector, with the rest yet to be negotiated. In return, the Greek side will shoulder 50% of the geopolitical risk, rather than the previously agreed 37% for Greece and 63% for Cyprus.
