A compromise on the Cyprus-Greece electricity interconnection project could be reached in the coming days, even though official details about Tuesday’s meeting in Nicosia remain scarce.
The potential breakthrough hinges on the Greek government and grid operator IPTO accepting modifications to reduce costs for Cypriot consumers in case of unforeseen disruptions to the electricity link, philenews sources said.
Cyprus is reportedly ready to accept IPTO’s two main requests for regulatory changes, which were agreed upon in principle on Sept. 2 but not yet ratified. These include:
- Direct government financing of 25 million euros annually to IPTO from 2025-2029 to recover implementation costs.
- Extending the concession period for an 8.3% return on capital to the implementing body from 12 to 17 years.
However, it remains unclear how the parties can address Cyprus’s concerns about mitigating consumer costs if the interconnection becomes non-functional after significant expenditure.
Contrary to earlier reports, sources said no teleconference took place on Wednesday, though one may occur in the near future.
Both governments and IPTO are keen for a swift resolution to allow the issuance of the Full Notice To Proceed to cable manufacturer Nexans, preventing further delays and potential financial losses.
The Presidential Palace and IPTO agree that this notice can only be issued once an agreement is reached on outstanding issues.
Both sides acknowledge that Nexans, despite holding a 1.4 billion euro contract, may not wait indefinitely, and there is an urgency for a timely resolution.
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