The European Commission takes a clear position to move forward without asterisks with the electricity interconnection project between Greece and Cyprus.
According to competent sources who spoke to “N”, the Commission’s specific attitude was once again clear in the teleconference held yesterday on the subject in question and in which ADMIE and representatives of the Ministry of Energy participated.
from Cyprus, as well as executives from CERA and Nexans.
It is recalled that last week the Cyprus Energy Regulatory Authority, through its decision, rejected ADMIE’s request for the start of cost recovery of the cable during the construction phase, from 1 January 2025, as RAEIF decided in this sense, referring to the starting point at the beginning of the commercial operation of the cable, that is, on 1 January 2030.
Something like this, as the ADMIE management has highlighted in recent days and appears to be fully embraced by the Commission, makes the project unsustainable, with an extremely high risk for the project promoter, which in turn inevitably leads to its suspension.
Pressures in Cyprus
During yesterday’s teleconference, as reported by the same information, Commission officials insisted on the same course of action that they had adopted from the outset, pressing the Cypriot side to take steps to ensure the appropriate institutional framework that would allow the safe completion of the project.
They specifically noted, in fact, that if the CERA decision is not changed, they will withdraw EU funding, which, if it happens, will create a financial deficit with painful consequences for the future development of the project. It should be noted that the project was included in the Commission’s 6th list of Projects of Common European Interest and is financed with EUR 657 million from EU funds.
In this case, ADMIE expresses its inability to proceed with the so-called “Final Notice to Proceed” to Nexans, a process that must be completed by the end of August and concerns the project implementer’s final commitment to the cable manufacturer that it assumes responsibility for the full cost of the project.
It should be noted that during yesterday’s teleconference, CERA executives insisted on the Authority’s initial decision, with Nexans executives stressing that if there is no solution, the project will be suspended.
The issue has now acquired a European dimension, with the involvement of both levels at the highest national political level.
Commission sources, who spoke to “N”, clarify that they are closely following the discussions, making it clear at the same time that the European Commission’s approach is based on the need to “ensure the appropriate institutional framework, which will allow the project to proceed within the prescribed timetable.
It will be important to ensure that the 657 million euro grant through the CEF (Connecting Europe Facility) can be used by the beneficiary”, as was typically reported.
The next steps
The cycle of meetings for the Greece-Cyprus electricity interconnection continues, with ADMIE management arriving in Cyprus tomorrow to hand over the full version of the cost-benefit study for the Grand Maritime Interconnector to the Cypriot Minister of Energy, Trade and Industry Giorgos Papanastasiou. In a more recent development, during yesterday’s meeting of the Parliamentary Energy Committee, Mr Papanastasiou mentioned, among other things, that the Cypriot government has requested the Nexans contract, which has not yet been awarded and which it intends to evaluate together with ADMIE’s cost-benefit study in the immediate future, in order to proceed with the final investment decision-making.