The outcomes of the study on the EuroAsia Interconnector electricity interconnection project involving Israel, Cyprus, and Crete, now renamed the Great Sea Interconnector, have yielded positive results. According to Energy Minister George Papanastasiou, the Republic of Cyprus will decide on its participation in the project by the end of January.
The decision follows a meeting at the Presidential Palace with a delegation from the Independent Power Transmission Operator (ADMIE) of Greece, the project’s implementing body, attended by President Nikos Christodoulides.
ADMIE’s President and CEO, Manousos Manousakis, expressed the operator’s eagerness for Cyprus to join the project, emphasising the potential for a new energy era with cheaper, cleaner energy, sufficiency, and enhanced energy security.
Manousakis disclosed that construction for the Cyprus-Crete interconnection is set to commence in 2024 and is expected to take 4 to 5 years to completion. Furthermore, a contract with the German company Siemens, responsible for connecting the converters in Cyprus and Crete, is slated to be signed at the end of 2024.
Following the meetings, Minister Papanastasiou outlined the project’s progression, noting the completion of the study and the positive results. The investment decision for Cyprus’ participation, initially scheduled for December, is now anticipated by the end of January due to delays in the finalisation of the study.
Papanastasiou addressed key points, including a significant contract for cable laying already signed and another contract for voltage converter construction expected within 2024.
He clarified that the Republic of Cyprus may participate without a state guarantee of loans from the European Investment Bank, relying instead on an equity sum. The share capital majority will be held by a joint entity representing the Republic of Cyprus and ADMIE.
Regarding the project’s cost, Minister Papanastasiou mentioned an increased total of €1.9 billion, attributing it to rising materials prices. He outlined the financial structure, with an estimated €800 million grant from the European Commission and a €100 million contribution from Cyprus.
The remaining €1.2 billion is expected to be secured through ADMIE’s contribution, investment funds, and other resources.
The Minister also touched upon the pause in negotiations with Israel due to the conflict with Hamas, expressing hope for a resolution to resume consultations. ADMIE’s Manousakis emphasised the project’s strategic importance and urged Cyprus to participate in a swift implementation, marking a new era of energy efficiency and security.
Finally, Manousakis provided details on the project timeline, stating that construction work would commence in 2024, with Siemens overseeing the project, and estimating a 4.5-year completion period for the Cyprus-Crete interconnection.
The commercial name of the project has been changed to the Great Sea Interconnector, signifying the transition to the construction phase.