Cyprus Stays on the Path to Energy Isolation After CERA Decision
CEO of ADMIE-IPTO Highlights the Impact of New Regulatory Decision on the Interconnector Project’s Viability
The Chairman and CEO of ADMIE-IPTO, Manousos Manousakis, stated in an interview with Cyprus News Agency that the decision by the Cyprus Energy Regulatory Authority (CERA) renders the Great Sea Interconnector project unsustainable.
Manousakis explained that the recent decision regarding the project's revenue methodology, announced yesterday to ADMIE, overturns a previous methodology decision (CERA 022/2023, 25/1/2023, Annex 1). This previous decision was in place when the project was under a different implementing entity, and ADMIE made its investment decision to become the implementing entity of the project based on this methodology in October 2023.
"This reversal creates a negative present value exceeding 100 million euros for the project. It raises legal certainty issues for the investment and trust issues in administrative decisions, and it must be immediately revised for the project to continue. We are in consultation with CERA to submit a revision request in the coming days," Manousakis added.
He further emphasized that "Greece has already committed through the decision of RAAEY, so that Greek consumers will pay their share of the electrical interconnection during its construction to make the project viable." He expressed the expectation of a corresponding decision from the Cypriot side.
"The amount Cypriot consumers are asked to pay during the construction of the Crete-Cyprus electrical interconnection is only 0.6 euro cents per kWh, a cost that will be recovered from the reduction it will cause in electricity bills from the first year of operation," Manousakis stressed.
"I also want to clarify that ADMIE has the financial strength to construct the project, but under the conditions created by this regulatory decision, no investor would become a shareholder," he pointed out.
Finally, the Chairman and CEO of ADMIE mentioned that if the decision is not changed in the coming days, the project will halt.
"This development would be particularly negative for Cypriot consumers, as the opportunity to reduce the very high energy costs they currently pay would be lost," he concluded.
