The geopolitical risk of the construction of the Great Sea Interconnector electricity interconnection between Greece-Cyprus-Israel is manageable, said the Minister of Energy, Trade and Industry, George Papanastasiou, during a discussion with his Greek counterpart, Theodoros Skylakakis, in the context of the 2nd Cyprus-Greece Intergovernmental Summit that took place in Nicosia.
There is clear support from the US, said Mr. Skylakakis, who in turn referred to the benefits of completing the GSI.
He also noted with regard to the participation of the Greek State in the share capital of the project that the final investment decision will be made after the completion of a study for the assessment of the risks.
In his brief introduction, Mr. Papanastasiou presented transparency on the energy policy of the Republic of Cyprus, which, as he noted, is based on the utilization of natural gas for the production of electricity, in combination with the use of RES, electrical interconnection and battery technology.
He added that during today's intergovernmental meeting, they discussed with Mr. Skylakakis issues such as electrical interconnection, the emerging natural gas market, stating that the Cypriot side requested assistance regarding the emerging market and the transfer to the free market, the certification of the floating terminal through the corresponding infrastructure of Greece.
Regarding the natural gas discoveries in the Cypriot EEZ, he said that the first Cypriot natural gas is expected from the “Kronos” field in block 6 in the first half of 2027, with the direction of the “Zor” field and liquefaction in Damietta, Egypt.
For his part, Mr. Skylakakis said that Greece is characterized by a greater influence of RES in the country's energy mix, which currently reaches 13.5 GW, adding that in the next three years it will exceed 20, with the greatest weight of investments being given to photovoltaics. He then characterized Greece as the epicenter of various interconnections and referred to the existing electrical interconnections with Italy, Albania, North Macedonia, Bulgaria and Turkey, the under-developed interconnection with Cyprus that will reach Israel, while he said that a green interconnection for the transfer of wind energy from Egypt is also being studied.He added that at the domestic level, the large cables connecting the islands are being added, the interconnection of Crete with the mainland is being completed, the interconnection of the Cyclades is in progress, while an interconnection with the Dodecanese is also beginning. The goal, as he noted, is to create a system that will be based on RES for the production of electricity and, in the long term, for the provision of other services, such as heating, cooling, etc.The discussion then focused on the Great Sea Interconnector electrical interconnection, with the Minister of Energy of Cyprus commenting that it is a “geopolitical and energy project” which has received a subsidy from the European Commission, while currently the implementing body IPTO is developing the first phase between Cyprus and Crete.
Given that Crete is already interconnected with Attica, the completion of the GSI will also mean the interconnection of Cyprus with the rest of Europe, as is the EU's goal, he added.
His Greek counterpart pointed out on the subject that the project has begun to be implemented, as the cable is being constructed and research activities for its laying continue. He added that the project has a normal cash flow and expressed the hope that with the participation of the Greek Government, it will be able to attract the interest of important international investors.
Asked if he was concerned about the geopolitical risk, Mr. Skylakakis said that there is clear support from the US, adding that this is a cabling project that does not affect seabed rights, and expressed the hope that common sense will prevail.
Responding to the same issue, Mr. Papanastasiou said that every project contains technical, geopolitical and economic risks.
He noted in particular that the management of geopolitical risks is possible through diplomacy, operational monitoring and economic alliances with investors from major countries, underlining that in this case “the geopolitical risk is manageable”.
In response to a question regarding the participation of the CSD, the Minister said that data analysis is being carried out through firms to manage any risks from participation in the equity capital, adding that the firm's position on the issues of due diligence and cost-benefit analysis is expected.
“The political position is that the project is supported and that the final investment decision will be made after the completion of the study”, he stressed.
In closing, Mr. Skylakakis said that this is a high-performance project, which will be greater for the Cypriot consumer, as for Greece it will contribute more to the stability of the system and the possibility of disseminating RES potential in the wider region.
“The project is so important politically, geopolitically and energetically for Cyprus and the wider region that it will ultimately proceed normally and will give a completely different dimension to the energy system of both Cyprus and the wider connection with Israel,” he said.
