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Cyprus

Cyprus Hails Moves to Connect Island and Israel to European Electricity Grid

Cyprus’s energy minister on Friday, August 7, hailed the entry of French investment company Meridiam as a backer of the Great Seas Interconnector project, an electricity cable that will connect Europe’s power grid with that of Cyprus and eventually Israel. The ambitious project would not only end Cyprus and Israel’s energy isolation, but would also serve as an important building block for a new energy and trade route to the Gulf and India that the European Union is pursuing.

The project is currently tied up in red tape over its real cost above an earlier estimate of $2.2 billion, and a European Investment Bank assessment due in the coming months will offer clarity on the matter. That is important for Cyprus because under an existing agreement, Cypriot energy consumers would have to put up as much as 63 percent of the cable’s construction cost, meaning a significant jump in electricity prices. Additional private investment is being courted to offset that burden on consumers while further EU funding is being weighed, Energy Minister Michael Damianos said.

The European Union has already committed $760 million (658 million euros) to the project. “It’s a very important project for Europe because it connects Cyprus, which is isolated, to the European grid. And the idea is to then proceed and connect to Israel,” Damianos said in an interview.

(TOI/VFI News)

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