Cabinet gives the nod to electrical interconnection with Greece

The Council of Ministers has approved a proposal by the Energy Ministry regarding the Great Sea Interconnector (GSI), that is, the electricity interconnection between Cyprus and Crete.

In statements to the media following the cabinet session, Energy Minister George Papanastasiou said that the Republic of Cyprus will pay €25m per year over a period of five years, strictly to subsidise a possible increase in electricity bills, from 1 January 2025 until 31 December 2029, so that consumers will not bear the burden of this increase.

As the minister said, the project will connect the national electric energy system with the respective electricity systems in Greece, thus helping lift Cyprus' energy isolation and boost energy security. It is particularly important for growth and the prosperity of the island’s inhabitants, he added, noting that the aim is to reduce the cost of electricity, through the electricity interconnection, by importing natural gas and via the use of renewable energy sources.

Moreover, he said that the project's significance is verified by the fact that the EU approved its financing through the Connecting Europe Facility with the record amount of €657m.

According to the Minister of Energy, the Council of Ministers decided that the Republic of Cyprus will pay €25 million per year strictly, for 5 years, to subsidize the increase that may occur in electricity bills for the right to recover costs during the construction period interconnection, i.e. from 1/1/2025-31/12/2029, so that consumers do not bear the burden of the increase.

This money will come from the Consolidated Fund of the Republic of Cyprus and more concretely from the pollution rights auction system and the first installment will be included in a supplementary budget.

"Today's decision of the Council of Ministers is the culmination of many consultations with all the stakeholders and the clarifications that have been given, so that the Republic of Cyprus has before it real data regarding the financial, technical and legal aspects of the project", Papanastasiou pointed out.

He added that the Government demonstrated "the necessary responsibility and due diligence that should characterize the decision-making regarding projects of such scope, with the sole aim of serving the interests of the Cypriot people, to whom we are accountable."

The Minister noted that in the immediate future, and on the basis of the road map that has been drawn up, the Government will be in constant communication, both with Greece and with the European Commission, for the further progress of the implementation of the project, but also with parties that have already shown a real interest in participating in the project.

A meeting of all GSI stakeholders took place a week ago, at the Presidential Palace, under Cyprus President Nikos Christodoulides, with a view to discuss the GSI issue.

(Source: CNA)