Cable prices are falling, but pending issues remain

 

Christodoulides' assurances on the implementation of the project.


While the tension of recent days around the Great Sea Interconnector (GSI) project seems to be deescalating at a political level, the technical and institutional issues that caused the dispute remain open. Athens and Nicosia are attempting to send a message of unity and continuity, however, the background shows that cooperation is being tested by different interpretations and bureaucratic entanglements.

The President of the Republic of Cyprus, Nikos Christodoulides, in an interview with the website huffingtonpost.gr, attempted to restore composure, assuring that the project will proceed as normal. "Of course the cable will be built and of course we are working in this direction. The desire of the Republic of Cyprus and the Greek government - and I am also quoting here from my discussion with the Greek Prime Minister - is of course for this electrical interconnection to be built," he stated characteristically.

Explaining his intervention yesterday, Mr. Christodoulides said that “it was done because there were some actions that were outside the framework of the understanding” he had with Kyriakos Mitsotakis in New York and recently in Copenhagen. He stressed, however, that “Athens’ relations with Nicosia and my relations with the Greek Prime Minister are the strongest they have ever been” and clarified that “there is no crisis”.

The Cypriot President noted that any differences concern exclusively “technocratic and technical issues”, which are called upon to be resolved by the competent independent authorities. At the same time, he conveyed that Greece and Cyprus “will not accept unreasonable challenges from Turkey that go beyond International Law”.

Regarding the sustainability of the project, Mr. Christodoulides stressed that this is a given, since GSI has received European funding. He warned, however, that “delays increase the cost and affect the sustainability” of the project, underlining the need to speed up the procedures.

On the issue of the Cypriot contribution, amounting to 25 million euros per year, the President clarified that there is no delay. As he said, the 2026 budget already includes the relevant provision, while a total commitment of 125 million euros is foreseen over a five-year period.

The tension was triggered after a letter from IPTO to the Cyprus Energy Regulatory Authority (CERA), requesting the recognition of the actual costs of approximately 250 million euros. CERA has so far approved 82 million euros, which caused reactions in Nicosia and mobilized Athens. The letter from the Greek Administrator, although part of the institutional procedures, was perceived by the Cypriot side as a challenge to the agreed payment framework.

The case led to an emergency meeting at the Maximos Mansion, in the presence of the Prime Minister, the leadership of the Ministry of Energy and the administration of IPTO, in order to assess the developments and avoid further escalation.

In Nicosia, government officials stressed that CERA operates independently and that the issue concerns purely the expenditure approval process, insisting that the transnational cooperation with Greece remains stable.

The Great Sea Interconnector, which has been designated a Project of Common European Interest (PCI), aims to interconnect the electricity networks of Greece, Cyprus and Israel. Upon its completion, Cyprus will cease to be the only European country without an electrical connection to the continental grid, enhancing energy security and reducing the cost of electricity.