On Tuesday, the Parliamentary Committee on Energy scrutinized the progress of the Cyprus-Crete electrical interconnection project amid concerns about its actual benefits for Cyprus. This review comes against the backdrop of the Cypriot government's final decision on whether to participate in the Special Purpose Vehicle Great Sea Interconnector, established by the Implementation Authority (ADMIE) for the project's execution.

The committee held an extraordinary meeting to address recent developments, including ADMIE's request for the Regulatory Authority for Energy (CERA) to reconsider its decision from July 2, 2024, which ruled out payments from Cypriot citizens for a project slated for completion in 2030. CERA's decision is expected by the end of August.

Additionally, the Energy Committee focused on the government's pending decision regarding its potential stake in the project.

Energy Minister George Papanastasiou informed lawmakers that a decision on participating in the project’s equity is anticipated within approximately three months.

CERA also noted that its decision on when to start charging Cypriot consumers for their share of the Cyprus-Greece interconnection project's costs via the Great Sea Interconnector will be made by the end of August.

Papanastasiou indicated that while the project is underway, the Cypriot government has yet to decide whether it will take a stake in it.

According to Papanastasiou, the Cypriot government considers it more appropriate to participate in the project as a shareholder rather than contribute €100 million as a donation, and that the policy decision is to continue with the project. He also mentioned that the project is under evaluation to determine Cyprus's potential shareholder role, with a decision expected within three months.

Regarding the final cost of the Cyprus-Crete electrical interconnection, Papanastasiou reported an estimated cost of €1.9 billion. However, he highlighted two uncertainties that could impact this estimate.

The first uncertainty pertains to the yet-to-be-signed contract between ADMIE and Siemens for the conversion stations in Kofinou and Crete, which will influence the project’s cost.

The second uncertainty involves the final choice of the underwater route for the cable connecting Cyprus and Crete. “Final bathymetric surveys for selecting the cable route are ongoing and may affect the cable’s length and final cost,” Papanastasiou said.

CERA Vice President Alkis Filippou stated that the Authority has requested guarantees from ADMIE that the final cost of the project will not exceed the current estimate of €1.9 billion. CERA President Andreas Poullikkas noted that such guarantees have not yet been provided, and there is no commitment against future cost increases.

Meanwhile, Poullikkas mentioned that CERA is facing pressure to alter its decision by mid-August, failing which ADMIE has warned of potential project suspension.