Cyprus has “no intention” to “create a confrontation with the Greek government” regarding the Great Sea Interconnector, according to Finance Minister Makis Keravnos. His comments come in light of Greek Prime Minister Kyriakos Mitsotakis’ remarks urging Cyprus to demonstrate its commitment to the ambitious energy project.
The Great Sea Interconnector aims to connect the energy grids of Cyprus, Greece, and Israel, facilitating energy exchanges and bolstering regional energy security. Keravnos highlighted that previous discussions have sufficiently clarified Cyprus’s position, stating, “Everything that needed to be said has been said.”
This sentiment echoes President Nikos Christodoulides’ recent assertion that Cyprus is “fully committed” to the project, emphasising the need for all involved parties, including stakeholders in Greece and Brussels, to take note of their dedication. He expressed his frustration over the repeated necessity to affirm this commitment.
Greek Foreign Minister Giorgos Gerapetritis also weighed in, reinforcing the project’s strategic importance. He pointed out that the interconnector would proceed as soon as certain technical and financial issues are resolved. A key element in this regard is the €25 million payment Cyprus owes to Greece’s independent transmission system operator, Admie. This funding, which has been withheld, is critical for financing the project and ensuring Admie has stable income during its implementation phase.
Keravnos explained that Cyprus has held off on the payment due to concerns about the project’s tangible progress and disagreements over funding sources. He stated that his position could change if there were visible advancements in the project, noting that seabed surveys, crucial for determining cable routes and overall costs, have not yet been completed. He remarked that these surveys are “decisive for the total cost of the project.”
In contrast, Gerapetritis asserted that the seabed surveys had proceeded as planned, disputing the claim that they were incomplete. This divergence of viewpoints highlights the complexities surrounding the project’s progress and funding.
Initially, Cyprus had intended to fund its obligations via the European Union’s emissions trading system (ETS), aiming to alleviate the financial burden on taxpayers. However, Admie raised concerns that this approach might contravene EU state aid regulations, prompting them to suggest that Cyprus’s energy regulatory authority begin charging consumers instead.
Keravnos referred to the situation as a “pseudo-dilemma,” questioning the logic behind the funding arrangements. “Taxpayers’ money will be paid so that consumers do not have to pay, but all taxpayers are also consumers. I do not know anyone who does not use electricity,” he remarked.
The funding negotiations have been further complicated by assertions from Keravnos regarding two “independent and serious organisations” that concluded the project is “not sustainable.” However, Greek officials expressed unfamiliarity with these organisations, raising further questions about the project’s viability.
Compounding the issue, the European chief public prosecutor’s office (EPPO) has launched an investigation into the interconnector project. Gerapetritis was quick to clarify that his family members are not involved in any related companies, asserting, “Absolutely no judicial investigation is being conducted into the issues falsely implied.”
