Apostolos Tomaras
Discussions among the parties involved in the Cyprus-Crete electricity interconnection project appear to be advancing following a recent presidential meeting. The focus is on addressing concerns raised by the Cypriot side to finalize the agreement. According to "K," the Greek side sent the final text of the agreement to Nicosia on Wednesday night, and the Cypriot response is awaited. Sources suggest that if everything proceeds as expected, the agreement could be officially announced by Friday. This would enable the Cabinet to make a political decision, with RAEK then addressing the remaining regulatory issues. This information aligns with reports from Athens' K. Additionally, the Energy Minister has emphasized the project’s priority for Israel, noting its potential to enhance regional energy security.
As reported by K in Greece, the ongoing discussions build on an agreement reached the previous Monday. Key issues include addressing geopolitical risks and recovering the €125 million project cost over five years. The Cypriot side is reportedly committed to a €100 million equity stake in the Great Sea Interconnector, with a remaining percentage still to be negotiated. In return, the Greek side is expected to share the geopolitical risk equally between the two countries (50%-50%), rather than the previously agreed 37% for Greece and 63% for Cyprus as outlined in the cross-border agreement.
Key issues include addressing geopolitical risks and recovering the €125 million project cost over five years.
The significance of the electricity interconnection for the Eastern Mediterranean is underscored by interventions from various stakeholders. The U.S. has addressed the issue multiple times through the U.S. Ambassador in Nicosia. Greek Foreign Minister George Gerapetritis has also reassured Nicosia regarding geopolitical concerns. Most recently, Israel's Energy Minister intervened, a move expected to significantly impact Nicosia's position on the matter.
