The electrical interconnection project between Greece and Cyprus is gaining new momentum as foreign, possibly American, investment interest appears on the horizon, which could revitalize an undertaking that has faced significant implementation challenges.
The electrical interconnection of Greece, Cyprus and Israel represents one of the world’s largest submarine projects for electrical energy transmission. The section under construction between Cyprus and Greece (Crete) spans 898 kilometers and has received €657 million in funding from the Connecting Europe Facility mechanism. This was one of the discussion topics at Wednesday’s meeting in Brussels between Greek Environment and Energy Minister Stavros Papastavrou, his Cypriot counterpart Georgios Papanastasiou, and European Union Energy Commissioner Dan Jørgensen.
American interest in the Greece-Cyprus cable reignites: Moves by Mitsotakis and Christodoulides
In Athens, following the 3rd Intergovernmental Summit between Greece and Cyprus, Kyriakos Mitsotakis, addressing Nikos Christodoulides and referring to recent international and geopolitical developments, said that “my friend the President, my friend Nikos, shares the view that these new realities make the added value of connectivity projects we are already promoting even more significant. These are projects with national importance for both countries, but they also have broader geopolitical implications“.
The Prime Minister revealed that the two governments jointly decided to proceed “with immediate updating of the economic and technical parameters of the electrical interconnection cable project between our two countries, so that it can potentially be strengthened with the entry of new strong investors, something that will obviously benefit us all“. According to sources, the US has expressed willingness to participate in this specific project, though details about the method and amount of financing remain unclear, including whether it will come from private capital or the Development Finance Corporation (DFC), the US state development bank that already has a presence in the country.
President Christodoulides made similar statements. “I agree with Kyriakos that our common goal is also to take substantial actions and effectively implement projects that will have tangible economic benefits as well as geopolitical impact. And precisely within this framework, we agreed with the Prime Minister on the need to update the economic and technical parameters for projects of particular geostrategic importance, such as those related to connectivity“, noted the President of the Republic of Cyprus.
It should be recalled that last August there was initial displeasure in Athens from comments by Cyprus Finance Minister Makis Keravnos, who expressed serious reservations about the viability and implementation of the electrical interconnection project. This was followed by the Mitsotakis-Christodoulides meeting in New York and intensive efforts along the Athens-Nicosia axis to find a solution, which will now be based on new, updated studies.
We also recall that Israeli Energy Minister Eli Cohen recently introduced a new parameter – the possibility of first constructing the Israel-Cyprus section and then the Cyprus-Greece section. “Right now, according to plan, the first phase is to create the line between Crete and Cyprus and the second is to create one between Cyprus and Israel. Perhaps we should consider changing the order and starting with the Israel-Cyprus connection to save time“, he stated in an interview with “Kathimerini Sunday“.
Indirect US support for the project
The electrical interconnection issue was reportedly discussed last Thursday at Zappeion, within the framework of the 3+1 Energy Ministers Summit (Greece, Cyprus, Israel and the United States), with the joint communique including a paragraph that could be interpreted as indirect US support for the project.
“The ministers reaffirmed their support for broader regional connectivity projects, both those already underway and future ones, within the framework of the India-Middle East-Europe Corridor (IMEC), in energy development and cooperation for protecting energy infrastructure“, the joint statement reads. Minister Papastavrou, speaking to Ertnews, mentioned that at this meeting “US support was declared for all existing or future energy connection projects, the creation of an energy hub, ensuring stability and strengthening the Eastern Mediterranean“.
