The open issues for the electricity interconnection project between Greece and Cyprus were discussed yesterday between the President of the Republic of Cyprus, Nicos Christodoulides, and the Prime Minister, Kyriakos Mitsotakis, in a meeting at the Maximou Mansion, where they reaffirmed the interest and political commitment of Cyprus and Greece for the implementation of the Great Sea Interconnector.

According to a Presidency statement, President Christodoulides confirmed the political commitment of the Republic of Cyprus to participate in the equity of the project as soon as possible, and after the completion of the due diligence study and the establishment of a special purpose company, for which advanced consultations with third countries are underway. 

INVESTMENT PARTICIPATION

This is the most critical point that remains open, with the Cypriot side not actually committed to taking a final investment decision on participation in the equity of the Great Sea Interconnector. This is an issue that Athens has set as a red line for the implementation of the project

COST SHARING

Another unresolved issue for the project to proceed is the reversal of the cost sharing of the interconnection based on the benefit to the two energy systems, if it exceeds the initial budget of €1.9 billion, from 37% for Greece and 63% for Cyprus to 50%-50%. The decision of the Cyprus Council of Ministers provides for this. According to the decision, in case the calculation is exceeded, the excess amount will be shared 50-50 between the two countries. In practice, the new Cypriot request reverses the framework agreed between the two countries, which was based on the benefit that their energy systems (and therefore consumers) would derive from the project. Thus, Athens seems to remain "cautiously optimistic" as to whether there will eventually be an agreement that will pave the way for the implementation of the project.