Professor of Geomechanics and Energy at the University of Cyprus, Panos Papanastasiou. Speaking on the “Alpha News” program, he warned of significant costs for Cypriot consumers, emphasizing the need to reexamine the project’s financial data.
Referring to the bathymetric surveys planned as part of the GSI, he explained that they are necessary for mapping the seabed topography and selecting the most suitable cable route. However, he clarified that the start of the surveys does not automatically imply the smooth implementation of the project, as serious geopolitical and technical issues remain.
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He placed particular emphasis on the updated study expected by the end of the year, arguing that the key issue is not Cyprus’s potential equity participation, but the final cost that consumers will be required to bear.
As he noted, some estimates now put the total cost of the project at €4 billion, while, according to his own calculations, the annual burden on Cyprus could reach €350 million, taking into account the cost of financing at an interest rate of 8.3%. “I’ve done the calculations—which aren’t far off—and it turns out that the cost Cyprus will be called upon to pay will be around 350 million per year,” he noted, while estimating that the project’s annual financial return would not exceed €150 million.
The professor pointed out that the cost-sharing arrangement between Cyprus and Greece—63% and 37%, respectively—remains unchanged, regardless of any potential increases. He argued that, if it is proven that the project is not economically beneficial for Cyprus, the agreement should be reconsidered, taking into account the size of the two economies. At the same time, he raised the issue of additional European funding, given that the European Union continues to consider the project of strategic importance. “So what do you want—to bankrupt the country because you insist that the project is of strategic importance to Europe? If that’s the case, let them fund it,” he said pointedly.
Regarding energy security, he questioned whether the power interconnection alone could ensure cheaper electricity or permanently resolve the problem of energy isolation. “If you want to break out of energy isolation, you can’t rely on a single cable,” he said, explaining that potential failures or undersea landslides make backup solutions essential.
Regarding alternative options, Mr. Papanastasiou emphasized the need to complete the energy infrastructure in Vasilikos and import natural gas, while suggesting that the possibility of utilizing Cypriot natural gas for domestic needs through appropriate contractual arrangements be explored.
He placed particular emphasis on the development of energy storage systems to enable more effective utilization of renewable energy sources. “Battery prices have fallen so low that larger battery storage systems need to be built,” he said, noting that this option should have been promoted from the outset, rather than prioritizing the electrical interconnection.
