The role of Cyprus is being upgraded with the participation in the financing of the project by the European Union (by 657.9 million euros) , the US and other major funding sources
Following the public debate on the Cyprus-Greece-Israel electrical interconnection, many questions arise as to what Cyprus seeks to achieve by delaying making final decisions on such a serious matter.
Some of the questions that arise are the following:
1. Does Cyprus need electrical interconnection or not?
2. Should Cyprus get out of energy isolation and connect to the European energy security network or not?
3. Is it urgent to find solutions to reduce the cost of electricity for Cypriot consumers or not?
4. Does the electrical interconnection upgrade the geostrategic role of Cyprus or not?
If the answers to these simple but essential questions are in the affirmative (which they are), then, we do not realize the difficulty in taking definitive policies and technocratic decisions that will give the green light to a significant infrastructure project in the energy sector.
Cyprus today is an energy isolated country, which is the second most expensive in the EU and more expensive than the USA and Japan in terms of electricity prices. All the efforts made by governments to date, to manage to reduce the cost of electricity, have not borne fruit or are on the cards. The only quick and sure solution to reduce the cost of electricity is the electrical interconnection and the connection of the Cypriot market with the energy system of the European Union. The method of electrical interconnections is followed internationally by many countries today and is considered the safest. So, Cyprus not only needs electrical interconnection, but it is imperative to promote it immediately.
At the same time, Cyprus must escape from its energy isolation. This will only be done by connecting it to the European energy system, which guarantees the long-term utilization of the electricity produced on the island. Also, Cyprus must prevent the possible electrical interconnection of Turkey with the occupied territories, something that is widely discussed on the Turkish side and related statements of encouragement were made by the former Deputy Undersecretary of Energy of the USA.
The electrical interconnection , when it starts operating from 2030, it will reduce the electricity bills of Cypriot consumers by 30%. This percentage is very large, if we consider the amount of bills that come every summer (and not only) to Cypriot households, but also to businesses. Also, Cyprus will manage to reduce the fines it pays to the EU due to pollutants.
Undoubtedly, the electrical interconnection will upgrade the geostrategic role of Cyprus in the SE Mediterranean. The electrical connection with Israel, Greece and the European energy system makes Cyprus an important energy player in the region and creates the conditions for its transformation into an energy hub of electricity. The upgrading of the role of Cyprus also takes place with the participation in the financing of the project by the European Union (for 657.9 million euros), the USA and other important sources of financing.
Based on the above, which are objective and documented assumptions, it is questionable why:
• The government struggles to make decisions.
• Why the parties , all of which seek immediate solutions to reduce the cost of electricity, do not seek the immediate promotion of this plan. project.
The arguments used by those who try to cast shadows on the implementation of this project are summarized as follows:
• Why the project will cost 1.9 billion euros from the 1.5 billion euros that was the initial calculation of its cost?
• Why should the project manager (ADMIE) start collecting money (01/01/25) from consumers before the project is completed?
• Why is the project unsustainable if its cost recovery does not begin before it is completed?
• Why should Cyprus pay the amount of 100 million euros and enter the share capital of this investment?
And to these questions there are clear and convincing answers, such as:
• The increase in the cost of the project was due to an increase in its construction elements.
• Commencement of cost recovery before the entire project is delivered is the practice in all electrical interconnection projects internationally. After all, the cost per household is very small – €30 per year – and cannot be a disincentive for a project with so many benefits. On the contrary, if this practice is not followed, the project becomes unsustainable due to the 100 million euros that will be required for its construction. Here, it should be pointed out that projects for the sewage system were similarly financed in Cyprus.
• The amount of 100 million euros for Cyprus' participation is very small in relation to the scope and benefits of the project to the economy and consumers. Also, as a shareholder, Cyprus will be able to subsidize electricity in larger amounts with the revenues it will have. Summarizing all of the above, the conclusion is that electrical interconnection is a one-way street for Cyprus. It must proceed, because it is an important energy infrastructure project for Cyprus, because it geostrategically and energetically upgrades the country and because it significantly reduces the cost of electricity for consumers, without any particular burden.
Honestly, we wonder what will Cyprus is doing if we do not proceed with the electrical interconnection. Will she wait for the Turks to do theirs, instead of taking the first step herself by creating new opportunities for cooperation with the Turkish community, thus energetically uniting the whole of Cyprus? Will it leave the country as the only isolated region from Europe's energy system, or will it leave consumers and the economy hostage to today's high electricity prices?
