As the European Commission pushes for faster progress on the Cyprus–Greece electricity interconnection, concerns are mounting over the financial risks and rising costs of the Great Sea Interconnector project.
Speaking to SIGMA’s Mesimeri kai Kati programme, George Chryssochos, president of the Electricity Market Association, warned that the project could become a “massive fiscal hole” for Cyprus.
“If ADMIE, which was approved €83 million in justified expenses by CERA, is now demanding €250 million, it shows its appetite early for the final cost of the project,” he said.
Cypriot consumers to bear 63% of total cost
Chryssochos explained that, under the regulatory decision, 63% of the total cost will be borne by Cypriot taxpayers or consumers, regardless of the project’s final price tag.
“The real fiscal hole isn’t the €25 million over five years being paid now, but the billions that will follow- if the project is completed at all.”
He also questioned the energy value of the cable, noting that “countries already connected to the grid are currently cutting back energy- they have a surplus.” He warned that the geostrategic benefits may be outweighed by a major financial loss that no one can yet calculate.
Hadjiyiannis: ‘Sad development and clumsy handling’
DISY MP and chair of the House Commerce Committee Kyriakos Hadjiyiannis called the situation “a sad development”, reminding that “all this was known to everyone for some time.”
“It is very clumsy for both leaders- the President of the Republic and the Greek Prime Minister- to engage in this rhetoric,” he said, adding that both “have extensive diplomatic experience and knowledge.
“If there was such a substantial disagreement, it should have emerged at a technocratic level- or at most, between ministers.”
He stressed that ADMIE must substantiate and submit its payment requests promptly, in line with procedures and regulations set by CERA, describing the issue as “particularly sensitive for Cyprus.”
Commission urging faster implementation
A European Commission spokesperson told CNA that Brussels expects “a commitment to the faster implementation of the project,” stressing that “any delay harms all sides.”
The Commission reaffirmed that the Great Sea Interconnector is “a project of the highest strategic importance for the EU,” saying it “continues to do everything possible to ensure its completion.”
“This project is critical to ending Cyprus’ energy isolation,” the spokesperson said, adding that “stronger interconnections help reduce energy prices and allow smoother integration of renewables.”
The Commission confirmed it remains “in constant contact with the project promoter, regulators and national authorities, offering every possible support,” but noted that “it is up to all parties involved to honour their commitments.”
