Cyprus, Greece break deadlock on Crete-Cyprus power link

Officials from Cyprus and Greece have reached an agreement in principle to resolve the impasse over the Crete-Cyprus electricity interconnection project. After extensive discussions, a breakthrough was achieved during a late-afternoon teleconference yesterday involving the governments of both countries, their energy regulators, the Greek power grid operator ADMIE, and the European Union's Directorate General for Energy.

As part of the agreement, the Cypriot government will commit €25 million annually over five years—totaling €125 million—to help fund the project during its construction phase. This financial support is intended to ease the burden on consumers and ensure the project's continuation. The Greek side agreed to this arrangement and also accepted not to contest a previous decision by the Cyprus Energy Regulatory Authority (RAEK) concerning geopolitical risks, a major sticking point in earlier negotiations.

The agreement is expected to prevent the suspension of work by the French company Nexans, which had threatened to halt progress due to unresolved issues. ADMIE, the Greek power grid operator, is now working to finalize regulatory decisions by Friday to secure investor funding and ensure the project's viability.

Cypriot President Nicos Christodoulides emphasized the importance of the project but noted that Cyprus' support hinges on clarifications related to the project's financial impact, particularly regarding electricity costs. "Our goal is to reduce the price of electricity," he said, stressing that the government will make decisions based on solid facts and satisfactory answers from all parties involved.

The agreement marks a critical step forward in the long-awaited energy link, which is seen as vital for enhancing energy security and reducing electricity costs in Cyprus. Final decisions and regulatory approvals are expected by the end of the week, with all parties maintaining cautious optimism until then.