The Cypriot Cabinet’s recent decision has potentially cleared the way for the Cyprus-Crete electrical interconnection project to move forward, though some hurdles remain, according to sources close to the matter.
The Cabinet’s decision, which includes a framework agreement sent to the Greek government, leaves open Cyprus’s participation in the Great Sea Interconnector company until later this year, a point that may not fully satisfy Greek authorities.
Key developments include:
- Cyprus Energy Regulatory Authority (CERA) must approve changes to existing regulatory decisions, with a meeting possible as early as Friday.
- A meeting between Cypriot President Christodoulides and the Greek Prime Minister is scheduled for Thursday to discuss remaining issues.
- IPTO, Greece’s power grid operator, is expected to grant the Full Notice To Proceed to cable constructor Nexans for the 1.4 billion euro contract.
The framework agreement reportedly includes provisions to protect Cypriot consumers from cost overruns beyond the projected 1.94 billion euros, with a 50-50 split of additional costs between Cyprus and Greece.
Cyprus’s decision on participating in the Great Sea Interconnector’s share capital is deferred to late 2023, pending further studies on the cost-benefit-analysis which was presented by IPTO.
