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12° Nicosia,
18 July, 2024
 

Cyprus's electricity outlook brightens with ''Great Sea Interconnector''

Study shows potential cost savings and path forward for Cyprus's energy future

Apostolis Tomaras

Apostolis Tomaras

The presentation of the "Great Sea Interconnector" electricity cable viability study by ADMIE's leadership in Nicosia has reportedly left a positive impression, alleviating concerns raised by statements from government officials in Athens regarding the Cypriot government's handling of the issue. ADMIE, the Energy Project Implementing Entity, shared the study results with the Energy Minister, drawing optimism from sources in Nicosia.

According to insiders familiar with the proceedings, the study's optimism was evident and expected. However, they noted that the projected 30% reduction in electricity costs from the cable's operation is not an exaggeration. Factoring in the introduction of photovoltaic (PV) technology and advanced storage of renewable energy, the government estimates a potential 50% reduction in electricity costs.

Despite concerns about Cyprus's participation, government sources emphasized that the project will proceed regardless. Nicosia anticipates receiving the study and terms of reference by month-end for evaluation by an international firm. This evaluation will heavily influence the government's investment decision. Even if the study does not favor Cyprus's participation, the project will continue. Nicosia believes Cyprus's involvement would enhance project management, ensuring European standards, and provide investment security for interested parties.

The final investment decision is expected by summer's end, contingent upon meeting timetables and awarding the bid to a rating agency. Cyprus's estimated participation is around 25%, aligning with strategic plans and potentially securing a majority stake alongside ADMIE. While precise figures on share purchase remain undisclosed, estimates suggest it could fall below €50 million. The Recovery and Resilience Fund could potentially finance the purchase, subject to market conditions and non-state aid considerations.

Details regarding Cyprus's financial obligations beyond share purchase remain unclear at this stage.

[This article was translated from its Greek original and edited for clarity]

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Cyprus  |  energy

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