The government of Cyprus on Tuesday announced it approved the electric cable link with Greece in a multi-billion project that would also link Europe’s grid to Israel.
The so-called Great Sea Interconnector (GSI) seeks to link the transmission networks of Greece via Crete, Cyprus and eventually Israel in a project costing 2.4 billion euros ($2.7 billion). The project is estimated at 1.9 billion euros if it were only to extend to Cyprus.
On completion, it will be the longest, at 1,240 km (770.5 miles, and deepest, at 3,000 meters, high voltage direct current (HVDC) interconnector in the world, according to Reuters.
Cypriot Energy Minister George Papanastasiou said the significance of the project is underscored by the European Union’s decision to fund it with the sum of 657 million euros ($735 million).
He said the Cypriot government will contribute 25 million euro ($27.8 million) annually over the five-year period of the 1,000 MW cable’s construction so that Cypriot taxpayers won’t see any hike to their electricity bills as part of their 63 percent share of building costs.
The total 125 million euro sum will be raised from revenues generated from the EU’s emission trading system.
Officials in Nicosia said -according to the Associated Press -Cypriot consumers stand to gain a drop in their electricity bills of as much as 40% once the approximately 900 kilometer-long (560-mile) cable is completed. The cable’s operating costs will be split down the middle by both Cypriot and Greek consumers.
An additional 36 euros on Cypriot electricity bills covering the cable’s operation costs once it’s up and running will be offset by the overall huge savings they’ll gain.
Greece-Cyprus electric power link to extend to Israel
It’s envisioned that the cable, with an operating life of around 35 years, will eventually continue from Cyprus to connect with Israel’s electricity grid.
Israel’s Energy Minister Eli Cohen recently posted on the social platform X that he emphasized to his Cypriot counterpart the cable’s “great importance” to Israel as a “top priority” that would “strengthen energy security in the region.”
Tuesday’s Cabinet decision ends weeks of speculation over the project’s future after Cypriot officials negotiated with the cable’s Greek operator, the Independent Power Transmission Operator, on how to mitigate the risks involved with its construction as well as its financial viability.
Those risks include interference by any third party that would stall the project at any point in its construction. That’s why the Cypriot government is disbursing the 125 million euro contribution in increments.
The ambitious project touches upon a complex patchwork of overlapping jurisdiction claims between Greece, Cyprus and regional rival Turkey in the Mediterranean.
Cyprus had sought clarity over what it would pay towards the project, and what would happen if ‘geopolitical risks’ – an apparent reference to any potential opposition from Turkey – arose, leading to delays and possible additional costs.
“We are talking about international waters, so in this respect, countries are allowed to lay pipes and cables and so forth,” said Harry Tzimitras, director of the PRIO Cyprus Centre who has researched the subject, per Reuters.
“But there are certain areas that Turkey is claiming as its own continental shelf and that being the case, Turkey’s argument is that prior consent is required,” he said.
Related: Energy Map Changes After Israel, Cyprus and Greece Electricity Link
