27 September 2024

Cyprus and Greece have signed an agreement to advance a major electricity interconnection project, aimed at ending Cyprus’s energy isolation and bolstering Greece’s position as a clean energy corridor in the European Union.

The project will link Cyprus’s national electricity transmission system with European networks via Greece.

Cyprus’s Cabinet has approved a maximum allocation of €125 million, to be distributed in five annual instalments of €25 million from 2025 to 2029. This funding will subsidise potential charges to residential, commercial, and industrial consumers’ electricity bills.

The Cyprus Energy Regulatory Authority (CERA) has set the project’s Weighted Average Cost of Capital (WACC) at 8.3% for 17 years, including the construction period, to ensure the project’s sustainability.

Additionally, the Cypriot government plans to invest €100 million in the project through the Great Sea Interconnector company, pending due diligence. This company will own the electrical interconnection infrastructure.

Greek Energy Minister Theodoros Skylakakis and his Cypriot counterpart George Papanastasiou signed the agreement last Friday, outlining the political and regulatory decisions necessary for the project’s implementation.

The original article: https://in-cyprus.philenews.com/insider/details-of-the-cyprus-greece-interconnector-agreement-revealed/ belongs to in-cyprus.com .