The electricity interconnection between Cyprus and Lebanon could constitute a project of strategic importance for the entire Eastern Mediterranean, according to Lebanon’s Minister of Energy and Water, Joseph Al-Saddi, who points out that through Cyprus, his country could eventually connect to the European energy grid.

In an interview with the "Alithia" newspaper published on Sunday, Mr. Al-Saddi states that the project's prospects become even more significant provided Cyprus completes its own electricity interconnection with the rest of Europe in the future.

"If Lebanon connects with Cyprus, and given that Cyprus may eventually connect with the rest of Europe, this would be extraordinarily beneficial for the country," he states, noting that the project could extend beyond covering Lebanon’s immediate energy needs to assume a broader strategic dimension.

World Bank Lead on Feasibility Study

The Lebanese Minister explains that the governments of Cyprus and Lebanon have jointly requested the World Bank to undertake a preliminary feasibility study to evaluate whether the interconnection is technically and economically viable.

As he states, the study will be funded by the World Bank and carried out in two distinct stages. The first phase will involve a high-level economic analysis and is expected to last approximately six months. Within this framework, factors such as the supply-and-demand balance of electricity and core economic parameters of the project will be evaluated.

Based on the outcomes of the first phase, a decision will be taken on whether to move forward. In the event of a positive evaluation, a more detailed technical and financial study will follow to examine the implementation conditions of the grid connection in greater depth.

Regional Energy Bridge and Structural Supply

Mr. Al-Saddi notes that the immediate benefit for Lebanon will be the reinforcement of its power supply, as the country continues to face severe electricity generation deficits.

"The obvious benefit is that we will be able to supply more electricity to the population of Lebanon," he states. He adds that such an interconnection could simultaneously function as a "bridge to the European energy system through Cyprus," strengthening broader energy cooperation in the Eastern Mediterranean.

He points out, however, that the primary challenges lie in demonstrating the project's economic viability and securing the necessary funding. As he mentions, financing could originate either from the private sector or from international institutions and funding bodies, including the European Commission.

Governance Structure and Next Steps

Regarding the timeline, the Lebanese Minister avoids making predictions prior to the completion of the study's first phase, noting that a clearer picture will emerge in about six months.

Cyprus and Lebanon have agreed on the Terms of Reference for the study and the establishment of a joint technical and steering committee. This body will collaborate closely with the World Bank throughout the duration of the study and coordinate the process between the two nations.

Source: ink.com