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Plans to connect the electricity grids of Cyprus and Israel are moving forward, with the company behind the Great Sea Interconnector taking the next formal step needed to get the project off the drawing board.
Greece’s Independent Power Transmission Operator, known as IPTO, has submitted an investment request to energy regulators in Cyprus and Israel. The two authorities must now assess the proposal and agree on how the cost of the cable will be divided between the countries.
Put simply, this is the stage at which regulators examine whether the project makes financial sense, who should pay for it, and how the investment will eventually be recovered through regulated revenue.
The proposed 324-kilometer undersea cable would run between Kofinou in Cyprus and Hadera in Israel, at depths of up to 2,400 meters. It would be able to carry electricity in both directions, allowing Cyprus and Israel to send power to each other depending on demand and availability.
The link is part of the wider Great Sea Interconnector, which is intended to connect Israel and Cyprus with Greece and, by extension, Europe’s electricity network. For Cyprus, the project is especially important because the island remains cut off from the European power grid.
IPTO said studies carried out with authorities and electricity operators in Cyprus and Israel found that the project would be financially viable under all the scenarios examined. It said the cable could improve energy security, support greater use of renewable energy, and bring the Eastern Mediterranean’s electricity markets closer to Europe.
The application follows recent talks between the Greek and Israeli energy ministers over the Cyprus-Israel section. It also comes shortly after French investment group Meridiam agreed to become the majority shareholder in the company responsible for developing the wider interconnector.
The regulators’ approval will not mean that construction can begin immediately. Cyprus and Israel must first reach an agreement on sharing the cost. A final investment decision would then be needed before financing and construction procedures can move ahead.
IPTO said it hopes to attract further investors for the Cyprus-Israel section, following Meridiam’s involvement in the Greece-Cyprus portion.
If completed as planned, the system will have a capacity of 1,000 megawatts, potentially giving Cyprus something it has never had before: the ability to import or export electricity through a direct connection with neighboring countries.
