The Cyprus-Greece great sea interconnector project (GSI) remains a strategic priority, as confirmed by Energy Minister Michalis Damianos on Tuesday. He emphasised that the project has not been suspended and that future decisions will be based on updated economic data expected by the end of the year.
In an interview with Omega, Damianos highlighted the importance of the GSI for Cyprus’ energy security and electricity supply. As the only EU member state without an electricity connection to another country, Cyprus stands to benefit significantly from this interconnector. “At the moment, the GSI is very important for the adequacy of the system,” he stated, noting that a link with neighbouring nations would allow Cyprus to access power when needed.
The project’s cost has been a focal point of concern. Initially estimated at €1.9 billion, the GSI is supported by €658 million in EU funding, with the remaining €1.25 billion to be shared between Cyprus and Greece. Cyprus is expected to bear 63 per cent of the cost, given that it is projected to gain the most from the interconnection.
Damianos cautioned that the financial implications could reflect in electricity bills over the long term. “The question that arises is whether the GSI will indeed cost only €1.9 billion, and we should also know how much the price of electricity will increase,” he remarked, underlining the need for clarity on future expenses.
Following discussions between President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis, the decision to pursue a fresh assessment was made. A due diligence study commissioned by the project promoter is currently underway and is expected to provide updated data regarding the project’s economic viability.
Damianos indicated that the results of this study would be critical in determining how any additional funding requirements could be addressed. He suggested that placing further costs directly on consumers might not be the preferred route, advocating for decisions to be made soberly and based on solid economic data.
In a related comment, former energy minister and current chairman of the energy regulatory authority, George Papanastasiou, characterised the GSI as an energy security project rather than merely a commercial investment. Speaking to Sigma, he argued that Cyprus cannot remain energy isolated and that the conversation should extend beyond financial sustainability.
Papanastasiou asserted, “It is not a matter of a project being sustainable. It is a matter of energy survival and autonomy of a member state of the European Union.” He also pointed out that several energy commitments agreed with the EU are tied to the GSI’s completion, raising concerns about meeting those targets by 2029 without the project.
