The European Commission does not need to conduct a new cost-benefit study for the Cyprus-Greece electricity interconnector nor publish a feasibility study, EU Energy Commissioner Dan Jørgensen has told MEP Michalis Hadjipantela in a written response.
However, the Cypriot government remains committed to the decision taken last month by President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis to update the project’s technical-economic data before taking next steps.
An informed government source told Phileleftheros the government’s position and intention is for the study to proceed as agreed.
Asked whether the Independent Power Transmission Operator (IPTO) or the governments would conduct the update, the source said the decision was for the study to be carried out jointly by the two governments.
It is not known what procedures have progressed, if any, since the Christodoulides-Mitsotakis meeting and statements. A consultancy will presumably need to be selected to carry out the update to clarify the estimated total cost today and the potential contribution to reducing electricity costs in Cyprus.
According to Jørgensen’s response to Hadjipantela, the Cyprus-Greece electricity interconnection remains a priority for the Commission, however, no new cost-benefit analysis is expected to be carried out, nor is a feasibility analysis expected to be published.
The Cypriot MEP had asked in writing whether the Commission intends to carry out an updated cost-benefit analysis and whether it intends to publish a feasibility analysis of the Great Sea Interconnector (GSI), particularly given rising costs, funding gaps and ongoing geopolitical obstacles.
Commissioner Jørgensen clarified that a cost-benefit analysis is conducted when an application is submitted to the Commission for a project to acquire Project of Common Interest status, meaning this was already done years ago for the GSI (at the time the implementation body was EuroAsia Interconnector).
He added that the GSI has been approved as a Project of Common Interest, which confirms that benefits outweigh costs.
In his response, Jørgensen described it as common for a Project of Common Interest to face higher costs than expected, especially in recent years, which have been particularly difficult regarding supply chains and geopolitical developments.
At the same time, he noted, the benefits arising from these have increased, particularly regarding energy supply security and the ability to transfer energy from renewable sources produced in the Union. Therefore, he stressed, completing the project remains a priority for the European Commission.
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