Cyprus' €1.9B entry into mega energy project uncertain

Republic of Cyprus is poised to enter the shareholding structure of one of the largest energy projects in the Eastern Mediterranean.

This decision, expected to be finalized in the coming week, follows a study presented at the Presidential Palace last week, which greenlights Cyprus's participation in the Israel-Cyprus-Crete electric interconnection project.

The project, slated to reshape the current energy landscape of both Cyprus and the wider region, seems to have allayed concerns that loomed prior to its transfer to the jurisdiction of the Cyprus Energy Regulatory Authority.

The study findings have paved the way for a positive outlook, believed to bolster the entire venture.

According to sources familiar with the matter, the significant decision is anticipated within the next seven days to ensure that the Ministry of Energy remains within the timelines set to inform the Project Implementation Authority, the Cyprus Energy Regulatory Authority in Athens.

Ahead of the decision, President Nikos Christodoulides is set to be briefed by Energy Minister George Papadopoulos, likely to take place next Tuesday.

Cyprus's potential involvement has been on the cards since the EuroAsia Interconnector was the project's implementing body. Initially, government sources expressed keen interest in participation.

However, subsequent delays, particularly after Greece's decision to dissociate the project's third phase, Crete-Peloponnese, from the EuroAsia Interconnector, dampened enthusiasm. Yet, interest reignited following the change in the project's implementing body.