Cyprus link risks losing EU funding

Cyprus link risks losing EU funding

Cyprus’ Energy Minister George Papanastasiou expressed concerns over the potential withdrawal of a 657-million-euro subsidy by the European Commission for the electricity interconnection between Cyprus and Greece, known as the Great Sea Interconnector (GSI).

This comes in response to a decision by the Cyprus Energy Regulatory Authority (CERA) to impose a fee on Cypriot consumers starting January 2025, aimed at helping the project’s implementing body, Greece’s Independent Power Transmission Operator (ADMIE), recover construction costs of €1.9 billion.

At the annual general meeting of the Electricity Market Association, Papanastasiou revealed that the European Commission reacted negatively to CERA’s decision, suggesting it could jeopardize the project’s sustainability. He noted that ADMIE also expressed concerns about the project’s viability.

“My primary concern is the European Commission’s reaction. They are providing the €657 million subsidy as part of their initiative to establish a unified electricity grid across Europe,” Papanastasiou said. “If the Commission withdraws this funding, the project is essentially dead,” he warned.

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