Greece expected to ‘fully implement’ GSI
Source: Cyprus Mail
Cyprus expects the project promoter of the Great Sea Interconnector in Greece to implement the project, the energy minister said on Tuesday.
In statements to the Cyprus News Agency, George Papanastasiou appeared to indicate that the government here has taken a wait-and-see stance vis a vis the GSI – the proposed subsea cable linking the electricity grids of Cyprus and Greece.
Asked first where the project stands now, Papanastasiou demurred, saying the GSI is designated as a European Union ‘project of common interest’.
As such, the European Commission should adopt “a clear stance”, he remarked.
“As far as the Republic of Cyprus is concerned, we have done our part according to what we agreed in the framework of understanding signed between the two nations,” the minister said.
In addition, the respective energy regulators in Cyprus and Greece entered into a cross-border cost allocation agreement, or Cbca.
Under the Cbca previously signed between the regulators, Cyprus undertakes 63 per cent of the cost of the interconnector, and Greece 37 per cent.
Last month it emerged that the €1.9 billion interconnector project might be put on ice, after the promoter in Greece “temporarily” suspended payments to the cable manufacturer.
The decision to halt payments was attributed to uncertainty looming over the project, mainly caused by geopolitical factors – Turkish ships in the area disrupting seabed surveys for the interconnector cable in international waters.
“The information we have on a political level, is that Greece is handling it,” Papanastasiou continued.
He said Athens is engaging in diplomacy “with the country which possibly objects” – meaning Turkey – but more so with other European states.
“Talks are also ongoing with investment funds, which affect the countries in which they operate. But we’ll have to see how that pans out.
“Right now, Cyprus expects the project promoter to implement the project.”
Queried about the timetable for completion of the GSI, the minister said it remains unchanged – end of 2029.
Cyprus’ national energy and climate plan assumes that an electricity interconnector will be operational as of 2030.
Papanastasiou reiterated that the goal is to increase the penetration of renewables in the energy mix, and that this is related to energy storage as well as to future imports of natural gas at the LNG facility in Vasiliko.
“All these are interrelated, they depend on one another.”
The minister was next asked to comment on recent remarks made by Kyriacos Kakouris, vice-president of the European Investment Bank.
Kakouris had stated that, in deciding whether to finance the GSI project, the bank would first wait for the revised national energy and climate plans of both Cyprus and Greece to get the nod from the European Commission.
On this, Papanastasiou said he was not aware if in fact the European Investment Bank set this condition, although it did “sound logical”.
On when Brussels might approve the national energy and climate plans, Papanastasiou did not know.
At any rate, Cyprus submitted its own plan in a timely manner.
The original article: belongs to Cyprus Mail .
