The open issues that are still outstanding are a concern for the project's implementation, despite the initial optimism that the Cypriot Council of Ministers gave the project the go-ahead. All eyes are now on the meeting between the Cypriot President, Nikos Christodoulides, and the Prime Minister, Kyriakos Mitsotakis, in Athens. 

THE AMENDMENT...

It was brought to your attention that Giorgos Papanastasiou, the Cypriot Minister of Energy, said that in line with the country's decision, the current rules about how the implementing entity (Great Sea Interconnector) can get its costs back will be changed. In this context, RAEK will proceed immediately to issue a decision to start the recovery of part of the costs of the implementing entity within 2025 and until December 2029. The recovery amount will amount to €25 million per year, which will come from state funds from the emission rights auctioning system.

AND THE NEW...

He said a supplementary budget would be submitted to Parliament for the first tranche and that consumers would not be charged for the first five years of the project's construction. However, if the interconnection is not completed within 2029, then the GSI funding will be discontinued and will resume after the project is operational and consumers will be charged. Additionally, if the cost of construction exceeds €125 million, consumers will be responsible for making up the difference. However, no reference was made to the formulation of the Weighted Average Average Acquisition Cost (WAAC) for the project. Reports wanted it to be locked in at 8.3% for the first 17 years, instead of 12 as per the existing RAC decision; however, it was not confirmed at yesterday's briefing.  There is also no final investment decision on the Republic of Cyprus' participation in the Great Sea Interconnector's share capital.  

PROBLEMS

The last issue in particular is a serious concern for Athens, creating pessimism about the next steps. Indeed, the decision that has reached the competent Greek authorities raises concerns about the Cypriot government's substantial commitment to the project and its intentions regarding the sharing of the geopolitical risk.