The EAC is concerned but will not reject the GSI "if it is for the benefit of consumers”

The Great Sea Interconnector (GSI) Cyprus-Greece electrical interconnection project has also become a topic of concern in the ranks of the Electricity Authority of Cyprus (EAC), with the Authority saying it is monitoring developments and awaiting the cost-benefit study, in order to formulate its position on the subject.

As InBusinessNews has been informed, due to the concerns expressed, the project has already come to the attention of the board of directors of the EAC, but for the time being, the Authority does not intend to comment on anything publicly before first evaluating all the relevant data.

However, according to an EAC source, although there are some concerns, in no case is the Authority currently calling for the project not to go ahead.

"That doesn't mean it's stopping the project because there are concerns. If the electricity interconnection will bring about cheaper electricity, we said that if there can actually be a reduction in the price of electricity, we will support it and we will have to take measures on how the EAC will survive," he stressed.

According to the same source, "now we are at the stage where we do not yet know the data to be able to study it. When we have the information, we will examine it and make our decisions. We can't take a position yet, because we don't have the study that was carried out."

Therefore, the source suggested, "before we examine and evaluate the study, we cannot position ourselves beyond that yes, if it is for the benefit of consumers, we will support it."

When asked, the same source did not want to say whether or not EAC had requested the study on the project submitted by IPTO, however, leaving the impression that it has requested it or intends to request it soon.

Energy associations are concerned

It is noted that associations that deal with energy issues have already expressed strong concerns and reservations about the GSI.

It is recalled that, among other things, the Electricity Market Association through a memorandum it recently submitted to the President of the Republic, Nikos Christodoulides, expresses concerns about the viability and financing of the project, reservations about the technical characteristics of the interconnection and concerns about the national security and energy independence of Cyprus.

At the same time, the Association has sounded the alarm on the sustainability of all those who have invested so far in the energy sector.

Also, all the energy associations that are members of the Cyprus Employers and Industrialists Federation in a joint statement, have expressed strong concerns, emphasising, among other things, the following:

• The risk and the burden of the effects arising from any modifications in the implementation of the project and any technical and geopolitical risks should be borne by the private investor and not by the consumer.
• The Cypriot consumer cannot shoulder the huge and uncontrollable costs of this usage.
• Any promised benefits to consumers must be clear and measurable.
• Before the decision is taken on the participation of the Government with a capital of €100 million, the very significant uncertainties of the project regarding the total cost, the time horizon of completion, the benefit for the Cypriot consumer and the risks of burdening the public debt in failure or delays need to be seriously evaluated.
• The sharing of costs, 63% burden for Cyprus and 37% for Greece, is unfair and unjustified.
• The implementation and uncontrolled operation of the Great Sea Interconnector project poses serious risks to the energy self-sufficiency and security of Cyprus and at the same time endangers the viability of many investments that have already been made in Cyprus.

(Source: InBusinessNews)