Cyprus urged to view Great Sea Interconnector as eastern mediterranean energy hub, not just a cost
"Former CERA chairman Andreas Poullikkas urges Cyprus to look beyond immediate fiscal burdens like the €50M state contribution and recognize the Great Sea Interconnector (GSI) as a transformative investment. He stresses that ending the island's electrical isolation is essential for long-term energy security, renewable integration, and positioning Cyprus as a strategic East-West energy hub between Europe, the Middle East, and India."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
Energy systems expert and former Cyprus Energy Regulatory Authority (CERA) chairman Andreas Poullikkas is urging Cyprus to move beyond the immediate financial implications of the Great Sea Interconnector (GSI) and instead embrace its potential to transform the island nation into a vital energy hub for the Eastern Mediterranean.
Poullikkas, a professor of energy systems at Frederick University, highlighted that public discourse surrounding the Cyprus-Greece GSI project has predominantly fixated on its financial burden, particularly the €50 million contribution required from the Republic. While acknowledging the necessity of scrutinizing such significant public investments, he stressed that strategic value extends far beyond present-day costs. "The real question Cyprus should be asking is much bigger. What kind of energy infrastructure do we want to hand over to the next generations of Cyprus?" Poullikkas questioned.
He articulated a critical choice for Cyprus: remain an electrically isolated island or leverage its unique geographical position to evolve into a regional energy powerhouse. Currently, Cyprus stands as the sole EU member state not integrated into the European electricity network, operating largely as an isolated system. This isolation incurs substantial economic, technical, environmental, and energy security costs.
The GSI, according to Poullikkas, is more than just an undersea cable; it is transformative infrastructure. The EU itself recognizes that Cyprus's electrical isolation hinders its integration into the internal electricity market and restricts its capacity to incorporate greater volumes of renewable energy. The GSI is seen by the EU as a crucial project to end this isolation, foster decarbonization, and enhance the resilience of the broader European energy system.
Looking towards 2040 and 2050, Poullikkas emphasized that an interconnected system is not a luxury but an essential requirement for Cyprus. Anticipated increases in electricity demand from electric vehicles, the electrification of heating and cooling, the central role of energy storage, and rising renewable energy penetration will necessitate robust infrastructure. Furthermore, new applications like green hydrogen production could unlock fresh opportunities for energy exports. He likened energy storage and interconnection to complementary forms of flexibility, crucial for managing a growing share of renewables.
The recent acquisition of a majority stake in the Great Sea Interconnector by French company Meridiam signals strong confidence in the project's strategic significance and is expected to bolster its financial and technical progression. Beyond its energy implications, the GSI also carries a substantial geopolitical dimension. An amendment under review by the US Senate Foreign Relations Committee, within the Eastern Mediterranean Gateway Act, explicitly designates the GSI as critical energy infrastructure for European energy security. It also identifies it as a potential backbone linking India, the Middle East, and Europe through the Eastern Mediterranean, aligning with the India-Middle East-Europe Economic Corridor (IMEC) initiative.
Poullikkas argued that Cyprus's geographical location, once perceived as a disadvantage, could become a strategic asset, positioning the country as a bridge between India and Europe and a crucial link between the EU, Eastern Mediterranean, and wider Middle East. He views the GSI as the foundational step towards a broader East-West energy bridge, envisioning a future energy corridor transporting large quantities of renewable electricity from India and the Middle East to the European market via Israel, Cyprus, and Greece. This could fundamentally shift Cyprus's role from a primary energy importer to a manager, transmitter, and potential exporter of clean energy, transforming it from an isolated island into a continental energy bridge.
However, this transformation is not automatic. Poullikkas underscored the need for a decades-long energy strategy, transcending short-term political cycles. This requires sustained investment in electricity networks, energy storage, renewables, digitalization, and new interconnections, underpinned by long-term political consensus. He concluded by warning against assessing strategic energy infrastructure solely through immediate fiscal lenses, noting that the cost of remaining disconnected—including energy isolation, missed opportunities for cheaper electricity, and hindered renewable energy growth—is far from zero. The GSI, he asserted, represents a critical national choice that will define Cyprus's energy future for generations to come.