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Tuesday, May 21, 2024
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Commission intervention for the Greece-Cyprus-Israel electrical interconnection

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ΠαρΕμβαση Κο&mu ;ινγηνκτικδιδ εση Ελδας-Κπρου-Ισραorλ /></p> <p><strong>Teleconference RAAEF- DG Energy – Requests to define the revenue methodology of the project and aligns with the suggestions of the French Nexans which sees delays and risks in the electrical interconnection</strong></p> <p>Report on the course of the electrical interconnection of Greece &# 8211; Cyprus – Israel is today in the Greek press, talking about the Commission's intervention in the project.</p> <p>As reported by newmoney.gr, DG Energy (Directorate General for Energy of the European Commission) is officially entering the discussion on the course of the electrical interconnection that bears the name Great Sea Interconnector (formerly Euroasia) and on the “big front&#8221 ?, as he notes, “ which has opened for the project and continues to find opposite ADMIE and Cypriots”.</p> <p>It is recalled that the Independent Electricity Transmission Operator (ADMIE), officially took over as the implementer of the Cyprus-Crete electricity interconnection, and just a few days ago announced one of its largest tenders, amounting to 1.71 billion euros (2.1 billion including VAT) for the project “Study, supply and installation of underwater cables and high voltage cables for the interconnection of Greek islands with the main grid.</p> <p><strong>Commission pressure</strong></p> <p>In today's publication, it is pointed out that on Friday, at the request of the General Directorate of Energy, a teleconference was held between the Commission and RAAEY (Regulatory Authority for Waste, Energy and Water) of Greece, at the invitation of DG Energy, which is pressuring the two regulators (Greece and Cyprus) to close the pending issues and determine the income methodology for the project, i.e. the way in which it will be paid during and after its construction.</p> <p>The Commission is the second body to address the Energy Regulatory Authority, requesting that the project proceed and that there be no further delays. At the end of March, the Regulator was also sent a letter by Nexans, which has undertaken the construction of the cable, with the company's executives expressing their concern about the delays, which affect the pending payments to the company.</p> <p >Nexans refers to the effort of ADMIE, which is the implementing body of the project, to advance the contract and accelerate the projects for the Crete-Cyprus section, which is the most mature. However, it also refers to the delay by the Regulatory Authorities for the transfer of the project from the Euroasia Interconnector to ADMIE (which happened a few days ago), but also to the finalization of the revenue and fee methodology so that ADMIE has control over the revenue flow and can meet payments to NEXANS and project obligations. If ADMIE, the French letter emphasizes, cannot respond, Nexans considers the suspension of work inevitable, putting at risk a key project for Cyprus' energy security.</p> <p>For the revenue methodology, AMDIE has submitted its proposal to the FSA. The Energy Regulatory Authority argued to DG Energy that the Greek side has an income methodology that satisfies the basic requirement of ADMIE to get performance during the construction period and when the project is completed to get some premium.</p> <p>< strong>Amortization time is questionable</strong></p> <p>Information indicates that the methodology submitted to the RAAE by ADMIE is generally aligned with that adopted by the Authority for national projects, although the manager differs on some issues such as the payback time of the project which he is asking to be 25 years. The RAFEA methodology provides for 37 years so that consumers are not burdened with large costs.</p> <p>The ADMIE proposal is to be evaluated in the next few days and finalized immediately after Easter, closing yet another front for the cable Crete-Cyprus-Israel.</p> <p>source: Economy Today, <em>With information from newmoney.gr</em></p> <p><noindex></p> <div class=Source: 24h.com.cy

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