Key talks were underway on Monday between the respective energy regulators of Cyprus and Greece and the project promoter for the electricity connector linking the two countries, while a senior Cypriot official reiterated that Nicosia has yet to decide on becoming an equity investor in the mooted project.
The Cyprus News Agency (CNA) reported that the two countries’ energy regulators held a video conference call with Greece’s Independent Power Transmission Operator (Admie), the project promoter for the €1.9 billion subsea electric cable known as the Great Sea Interconnector.
The object of the call was to discuss Admie’s proposal for its expenditures going forward. According to CNA, these related to Admie’s capital expenditures and its operating costs for the years 2024 and 2025.
CNA said moreover that Andreas Poullikas, head of Cyprus’ energy regulatory authority (Cera) did not take part in the video call. Poullikas is currently on leave until his departure from the post. He had earlier given notice that he would resign his post on October 31.
The talks between the regulators and Admie come on the heels of a memorandum of understanding agreed last weekend between the governments of Cyprus and Greece, effectively green-lighting the electricity interconnector.
Later on Monday, Energy Minister George Papanastasiou confirmed the discussions involving the energy regulators and the project promoter.
He said the talks were part and parcel of the standard process, rather than “tying up loose ends”. The minister also specified that, contrary to media speculation, the discussions did not directly concern the ‘final full notice to proceed’ to Nexans, the cable manufacturers.
The manufacturers are waiting for the project promoter to give them the final go-ahead on the cable.
Since the interconnector is a regulated project, any expenditures the promoter makes need to get the nod from the energy regulators in the countries involved – Cyprus and Greece.
Asked about a related but separate issue – the participation of the Cypriot state itself as a shareholder in the project – Papanastasiou said the matter is still under consideration.
A decision to become an equity investor – to the tune of €100 million – should not be taken for granted, he added.
The government has asked for a due diligence report to assess the pros and cons of buying into the interconnector project, both from a technical and financial standpoint.
The due diligence would also assess a cost-benefit analysis submitted by Admie back in July.
Papanastasiou demurred when asked when the due diligence might be ready. Earlier, media reports suggested the assessment would not be delivered anytime before November.
