The ongoing discussions regarding the Great Sea Interconnector (GSI) have prompted a video conference between European energy commissioner Dan Jorgensen and the energy ministers of Greece and Cyprus. Cyprus Energy Minister George Papanastasiou and his Greek counterpart Stavros Papastavrou are set to address the unresolved issues surrounding the ambitious energy project.
This meeting is particularly crucial given the recent tensions highlighted by Cypriot Finance Minister Makis Keravnos, who accused Papastavrou of disseminating “fake news” regarding the interconnector. This accusation came on Monday morning, marking a significant escalation in the dialogue between the two nations.
On Tuesday, Greek Foreign Minister Giorgos Gerapetritis weighed in, emphasising the need for clarity on Cyprus’ stance concerning the interconnector. “The national benefits produced may be very important, but technical and economic viability is also a necessary condition with regard to European funding,” he stated, underscoring the importance of a solid foundation for the project.
The backdrop of this dispute stems from differing perspectives on the sustainability of the interconnector. Papastavrou has claimed that the studies he commissioned indicate the project is not viable. In a rebuttal, Keravnos confirmed that these studies were conducted by Papanastasiou and had been appropriately delivered to the Greek energy ministry. He further mentioned that they were shared with Papastavrou’s predecessor, Theodoros Skylakakis, suggesting that there is a shared understanding of the studies’ findings.
Keravnos acknowledged that while concerns about the project’s feasibility are valid, he also harbours many of his own. The Cypriot government has expressed hesitancy over its financial commitments, particularly the five annual payments of €25 million to Greece’s independent transmission system operator Admie, which are intended to support the project’s development.
Cyprus has withheld these payments thus far, citing a lack of tangible progress on the interconnector as a primary reason. Papanastasiou asserted that the first instalment would only be made once the project is “implemented in its entirety,” indicating that preliminary construction, such as just laying cables, does not meet their criteria for disbursement.
Initially, the Republic of Cyprus had planned to utilise funds from the European Union’s emissions trading system (ETS) to finance these payments, aiming to minimise the burden on taxpayers. However, concerns have been raised by Admie regarding compliance with EU state aid regulations. As a result, there are calls for the Cyprus energy regulatory authority (Cera) to consider charging consumers directly to ensure financial stability for the project.
As the video conference approaches, the stakes are high for both nations. The outcome could significantly influence the trajectory of the Great Sea Interconnector, a project seen as pivotal for enhancing energy connectivity in the region. Whether the meeting will bridge their differences or further entrench them remains to be seen.
