How is the implementation of the Greece-Cyprus-Israel interconnection progressing
File photo.
Important steps in the implementation of the Greece-Cyprus-Israel electrical interconnection, which will definitively and sustainably remove the energy isolation of Cyprus, are underway.
– In the field of construction, the contractor of the cable sections Nexans received the “green” light from the Commission for the Granting of Licensing of Marine Research (HEXAETH) in order to start the seabed surveys. The ship on behalf of the French company will immediately start mapping the seabed in order to choose the optimal route for the submarine cable that will connect Cyprus to Crete.
– In the field of financing, it was agreed between ADMIE and the State Fund of the United States DFC to immediately send the proposed financing terms (term sheet) of the project, following the letter of intent (LoI) it had recently addressed to the Implementing Agency. ADMIE is very close to having proposed terms of financing from Greek commercial banks as well, while continuing the rounds of contacts with interested investors for equity participation in the project. Also, the Administrator is in discussions with the Bank of Cyprus, which has already started the technical and financial evaluation of the project, in order to participate in its financing.
– In the field of informing the productive bodies of Cyprus, the administration of ADMIE had on Thursday 13/6, a detailed discussion with the Cypriot Federation of Employers & of Industrialists (OEB) for the benefits and technical characteristics of the project.
During the teleconference held with representatives of Professional Associations and other Organized Groups – Members of the OEB, including the Cyprus Electricity Market Association (SAH), the advantages of electrical interconnection against the development scenario of Cyprus as an isolated energy system were presented in detail, according to the results of the cost-benefit study (CBA) presented by the ADMIE consultants during their recent visit to Cyprus. Also, detailed answers were given by the scholars and executives of ADMIE to all the issues raised, such as the imports and exports of energy in Cyprus, technical issues of the operation of the interconnection and the electricity system of the country, the necessity and economic viability of the energy infrastructures that exist or should be developed etc.
The Implementation Body documented with specific data the following benefits of the GSI:
– The interconnection joins Cyprus in the single electricity market, paving the way for the participation of Cypriot entrepreneurs in all the activities of the European energy market, i.e. in the production, supply and trade of electricity.
– Joining the single market will ultimately lead to a convergence of the electricity prices of Cyprus with those of the rest of Europe for the benefit of private and corporate consumers, which is very important, citing indicatively for a household with a consumption of 5,000 KWh per year, it reaches 400 euros in electricity bills per year.
– Through the interconnected system, the generated RES energy finds an outlet to the demand, which gives an advantage to the RES (mainly PV) producers of Cyprus who produce cheaper compared to Eastern and Northern Europe. This means that, once Cyprus is interconnected, the large RES output of its stations (mainly PV) that will need to be installed on the island to achieve very high RES penetration targets, turns Cyprus into an exporter of excess RES generation.
– Given that natural gas is a transitional fuel for Cyprus as well in the common course of decarbonization of Europe until 2050, in accordance with the country's commitments towards the European Green Agreement, the PV production units together with the other units of conventional fuels, when the penetration of RES will have increased significantly, they will operate on the basis of reserve or supplementary operation through a power mechanism for reserve – flexibility (capacity mechanism).
Finally, a video conference is taking place today between the ADMIE , the Abu Dhabi sovereign fund, TAQA, the Ministry of Energy, Commerce & Industry of Cyprus and the EU Energy Directorate, in order to clarify the regulatory framework for the fund's participation in the project.
