Newsroom
According to Yiannis Ioannou in this Sunday's Kathimerini, Cyprus is grappling with pivotal energy projects at a crucial juncture. Three major initiatives—Vasilikos, the Cyprus-Crete electricity interconnector, and the Aphrodite natural gas deposit—are encountering significant obstacles.
At Vasilikos, a major scandal involving the interim arrival of natural gas threatens to have European repercussions. Negotiations between Athens and Nicosia over the Cyprus-Crete interconnector, known as the Great Sea Interconnector, are fraught with complications and delays. Meanwhile, discussions between Nicosia and Chevron regarding the Aphrodite gas deposit, discovered 13 years ago and declared commercially viable a decade ago, are proving to be exceptionally challenging.
These developments present a considerable test for President Christodoulides' administration. Despite Cyprus's touted geopolitical significance in the Eastern Mediterranean and its potential as an energy hub, the island remains reliant on fuel oil and is plagued by pollution fines. It has yet to fully integrate its energy resources, produce gas from its reserves, or liberalize its electricity market.
Historically, Cyprus made strides in maritime zone delimitation in the 2000s, declaring an Exclusive Economic Zone (EEZ) of 70,000 square kilometers. However, structural issues, including opaque conditions, systemic corruption, and financial crises, have hindered progress since 2011. The island's energy projects have been impacted by geopolitical risks and shifting regional dynamics, including tensions with Turkey and uncertainties in the Middle East.
The failures of key projects like the EastMed pipeline and the Cyprus-Israel agreement highlight a lack of cohesive strategy. The ongoing geopolitical tensions and the practical difficulties of implementing energy projects underscore the need for a more effective approach.
As the Christodoulides government faces these critical issues, the outcome of the Vasilikos scandal, the interconnector negotiations, and the Aphrodite discussions will be crucial. The public remains burdened by high electricity costs and remains skeptical about the promised geopolitical benefits of Cyprus's energy ventures.
