Interconnector: EU will not assume potential cost if Turkey disrupts project
Source: in-cyprus.com
The Directorate-General for Energy of the EU has sent a letter to the directly involved parties in the electricity interconnection between Cyprus and Greece, and is trying to allay concerns in Cyprus about the serious possibility that Cypriot and Greek consumers will pay hundreds of millions for the project but will not enjoy its benefits if, in the meantime, Turkey intervenes, invoking its rights in maritime areas that it arbitrarily includes in its own EEZ.
According to philenews sources, the letter from the Directorate-General for Energy is considered a positive development from the EU, but not sufficient for the Cypriot side to agree to consumers bearing the huge cost of a possible project disruption by Turkey.
The news of the letter from the European Commission to the competent authorities in Cyprus and Greece (the letter is reported to have been sent by the Directorate-General for Energy) was published on Thursday afternoon by the website energypress.gr.
According to the website, the European Commission will use all diplomatic means to protect the project from geopolitical risk. Energypress.gr estimates that the letter is a “springboard for CERA to remove one of the major ‘thorns’ in its decision on the methodology of entry for the electricity interconnection between Greece and Cyprus.”
According to energypress.gr, in the same letter, “Brussels notes that the Great Sea Interconnector is a project of ‘utmost importance.’ The Commission’s explicit intention to provide diplomatic ‘shield’ to the project is the second significant and tangible European move to support the interconnection. It is recalled that the project has secured the largest PCI funding, amounting to €657 million.”
Yes, but…
Philenews sources, however, say that the letter from the Directorate-General for Energy on the electricity interconnection is considered a positive development but is in no way seen as an official assumption of the cost of the geopolitical risk by the EU.
The promise to use all diplomatic means to protect the project is only partially satisfactory for the competent authorities in Cyprus, but in no way convinces them of the willingness or readiness of Brussels to prevent a Turkish intervention to suspend the project or, even more so, to assume the potential economic cost in the event of a project disruption due to Turkey.
Under these circumstances, the possibility of CERA changing its existing regulatory decision to delete its own discretion not to allow consumers to bear the cost in the event of Turkish intervention is minimal.
This intention of CERA is officially supported by the Cypriot Government, according to our information.
Before decisions are finalised, it is likely that there will be a new consultation with the European Commission to see to what extent it is willing to assume the cost of the geopolitical risk, so that the obstacles to the project can be overcome.
The original article: belongs to in-cyprus.com .
