NICOSIA, Cyprus (AP) — The future of an electricity cable linking the power grids of Greece, Cyprus, and Israel will be determined next month with a ruling expected on whether Cypriot consumers will bear the cost of the cable's construction over four years. The 1.9-billion-euro ($2.06 billion) Great Sea Interconnector aims to end energy isolation for Cyprus and Israel, offering consumers cheaper energy from renewable sources. The European Union is providing partial funding of 657 million euros.
The Independent Power Transmission Operator (IPTO) of Greece initially proposed that Cypriot taxpayers cover construction costs to attract investors, a proposition rejected by the Cypriot energy regulator, CERA. A final decision by CERA is set for August 12.
IPTO's calculations suggest a minimal additional cost for Cypriot consumers during construction, estimated at 0.6 euro cents per kilowatt-hour. The first phase of the project, connecting Crete to Cyprus, has seen 40-50 kilometers of cable laid on the Mediterranean seabed. Once operational, Cypriot consumers could see a 30%-40% reduction in energy prices.
The Cypriot government will decide in September whether to invest 100 million euros after evaluating project viability. The cable forms part of Cyprus' strategy to reduce reliance on crude oil, with plans for a natural gas terminal using imported liquefied natural gas to lower greenhouse gas emissions by 40%-45%.
However, the LNG terminal construction has faced challenges. The CPP-Metron consortium recently withdrew from the project due to financial disputes. President Nikos Christodoulides criticized the awarding of the contract and aims to complete the terminal within a year using existing subcontractors or alternative options.
ExxonMobil's upcoming drilling in 2022 offers hope for significant gas discoveries off Cyprus' coast, potentially justifying future investments in gas infrastructure for domestic use or export.
