AKEL raises new critical questions for the government in a letter to Finance Minister Makis Keravnos regarding the electricity interconnection between Cyprus – Greece (GSI), following reports from the most recent session of the Parliamentary Committee on Energy.
AKEL General Secretary Stefanos Stefanou requested an update on the concerns and issues being discussed at the European level regarding the high cost of interconnections, as noted by the Minister of Finance himself.
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He also asked for clarification on whether there is a specific financial threshold beyond which the Republic of Cyprus would not consider the project viable, as well as what concerns the Minister of Finance had raised when the decision on the Cyprus–Greece Memorandum of Understanding (MoU) was made in September 2024.
Finally, he reiterates the question of what stance the government will take if the new study concludes that the project is not economically viable or is not in the best interest of the Republic of Cyprus.
In conclusion, he notes that before any new commitment is made, there must be a complete picture of the total cost, obligations, and implications for Cyprus and consumers.
The letter is attached in its entirety:
Nicosia, September 10, 2026
Minister of Finance
Mr. Makis Keravnos
Further to my letter dated September 2, 2026, regarding the Cyprus-Greece electricity interconnectionand in light of the important remarks made during the meeting of the Parliamentary Committee on Energy on September 8, I consider it necessary to request some additional clarifications.
Of particular importance are your own remarks regarding the concerns raised in the Economic and Financial Affairs Council (ECOFIN) regarding the high cost of electricity interconnections and the shifting energy priorities within the European Union.
Please, therefore, inform us of the content of the discussions at ECOFIN regarding electricity interconnections. What specific concerns have been raised, and how do they affect the GSI’s assessment?
Equally important is your position on the project’s cost. Given your statement that the €1.9 billion primarily covers the cable and that there is not yet a complete picture of the total cost, is there a financial ceiling beyond which the Republic of Cyprus considers the project to be economically unsustainable?
You also noted that, when the Council of Ministers made its decision on the Memorandum of Understanding (MoU) between Cyprus and Greece in September 2024, you raised specific concerns and reservations before this House. What were those concerns, and what conditions did you set?
Finally, it is crucial to determine whether, in the event that the new study concludes that the project is not economically viable or is not in the best interest of the Republic of Cyprus, is there a legal option to withhold payment of the €125 million or to terminate the relevant commitments?
What are the financial consequences in the event that the amount is not paid? Are there any potential compensation payments, other contractual obligations, or regulatory charges that would continue to be borne by the state or Cypriot consumers?
Mr. Minister,
Your remarks at the most recent meeting of the House Energy Committee confirm that there remain serious uncertainties regarding the total cost, the financial viability, and the actual benefits of the electricity interconnection project for Cyprus and its consumers. We therefore consider it self-evident that, before any new financial or other commitment by the Republic of Cyprus, there must be a complete picture of the total cost, the country’s legal obligations, the alternative options, and the implications for consumers.
We look forward to receiving your specific responses to the above.
Sincerely
Stefanos Stefanou
General Secretary of AKEL
SEE ALSO: GSI: The sustainability of the electricity interconnection must be ensured | AlphaNews
