Cyprus confirms Great Sea Interconnector will proceed as planned, rejecting bypass reports
"Cyprus Energy Minister Michalis Damianos dismissed reports that the Great Sea Interconnector (GSI) could bypass the island, confirming that both the Cyprus–Crete and Cyprus–Israel legs are proceeding as planned. With €658 million already committed by the EU and France's Meridiam entering the venture, a fresh due diligence study is underway to determine the exact project costs and secure additional funding to avoid placing a heavy burden on local electricity bills. "
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
Cyprus's energy, commerce and industry minister, Michalis Damianos, confirmed on Sunday that the Great Sea Interconnector (GSI) project is progressing as planned and will definitively include Cyprus. The minister refuted circulating reports suggesting the project might bypass the island, asserting that both the Cyprus-Crete and Cyprus-Israel sections remain integral to the interconnector's route.
Damianos highlighted recent advancements following an agreement between President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis. This accord has facilitated the introduction of a new investor into the project, with a fresh due diligence study now underway. The primary objective of this study is to ascertain the precise cost of the interconnector and establish its financing framework.
Emphasizing that the process is unfolding normally, Minister Damianos noted that the European Investment Bank would require a certain period to advance with its subsequent steps.
Addressing concerns about the project's economic viability, Damianos indicated that this would largely hinge on the availability of sufficient funding. Should the project's expenses escalate significantly, he stated that securing additional investors and financial resources would be imperative to ensure its continuation. He reminded that the European Union has already committed €658 million to the GSI, underscoring the necessity to confirm any potential cost increases and devise strategies for financial stability.
The minister also touched upon the financial implications for Cypriot consumers, who are expected to contribute to the project through their electricity bills. He stressed the importance of securing further funding to mitigate any substantial impact on household energy costs.
Furthermore, Damianos welcomed the involvement of French company Meridiam, noting broader investment interest in the GSI, including specific attention from foreign investors for the Cyprus-Israel segment. "Since there is broader interest, it is a project for which we must find a way to implement it, and not ask whether it will be implemented," he concluded, reinforcing the government's commitment to the interconnector.