The payment of €25 million by the Republic of Cyprus for the Great Sea Interconnector (GSI), said the Minister of Energy, Commerce, and Industry, Michalis Damianos, noting that the government’s intention is for the agreed-upon amounts to be paid as the project progresses.
Speaking after presenting his ministry’s 2027 budget to the House Finance Committee, Mr. Damianos stated that the commitment for €25 million pertains to a project that is underway and not one that remains pending.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
During the Committee meeting, the Minister noted that the Cyprus Energy Regulatory Authority (RAEK) has so far recognized €82 million in expenses out of the €302 million requested by the implementing agency, ADMIE. He added that the government will proceed with the payment of €25 million from the state budget, while the European Investment Bank’s (EIB) study on the project is also underway.
Mr. Damianou clarified that the cost to Cypriot consumers via their electricity bills will begin once the project is completed and electricity is transmitted to Cyprus. As he noted, the portion attributable to Cypriot consumers is expected to be repaid over a period of 30 years. “If electricity does not reach Cyprus, we will not pay,” he said.
Referring to the possibility of increased costs, the Minister said that additional resources would need to be sought, possibly from investors, funds, or through financing from the EIB. He noted that commitments to the project have been in place for years, as European funding has been requested, adding that the government has reached an agreement—without delving into the legal aspects of the matter, on which, he said, the Legal Service will issue an opinion.
Mr. Damianou described the GSI as important both for ensuring electricity supply and for geopolitical reasons, while acknowledging the difficulties associated with the project and the geopolitical risks. He also said that Nicosia is being kept fully informed by Athens regarding developments and noted that Greece, France, and French interests associated with the project play a role in its protection.
Regarding the possibility of the state acquiring a stake in the project’s equity, the Minister stated that the issue will be examined at a later stage, once the relevant study is completed.
Speaking more broadly about energy projects, Mr. Damianou said that the government intends to move forward with both the GSI and the natural gas terminal in Vasilikos, noting that the latter is proceeding according to schedule. He added that the goal is to secure natural gas for Cyprus before 2030, when EAC power generators are expected to be decommissioned, thereby reducing the cost of electricity generation through lower fuel prices, lower emissions, and increased competition.
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Source: KYPE
