The Cyprus-Israel interconnector project has taken a further step towards implementation following the submission of an investment request by Greece’s Independent Power Transmission Operator (IPTO) to the regulatory authorities of Cyprus and Israel.
The request concerns the Great Sea Interconnector (GSI) and was submitted under the European TEN-E regulatory framework.
According to IPTO, the development forms part of the Greek government’s strategy to promote the GSI as a project of major geopolitical and energy significance for Greece, Cyprus, Israel and Europe.
The submission comes one week after IPTO and French investment group Meridiam signed an agreement for Meridiam to become the majority shareholder in the Great Sea Interconnector company.
It also follows a telephone conversation between Greece’s Environment and Energy Minister Stavros Papastavrou and his Israeli counterpart, Eli Cohen, on promoting the Cyprus-Israel electricity link.
Studies confirm economic viability
The investment request is the next required step under the European framework following the completion of cost-benefit analyses (CBA) and a proposal for cross-border cost allocation (CBCA).
IPTO said extensive consultations and exchanges of data were held with the relevant authorities in both countries, including the energy ministries, Cyprus’s Transmission System Operator and Israel’s system operator, NOGA.
The studies took into account the latest assumptions concerning electricity systems, demand, renewable energy penetration and required infrastructure.
According to IPTO, the results confirmed the project’s economic viability in all scenarios examined.
The Cyprus-Israel interconnector is also expected to contribute to security of supply, greater renewable energy penetration and the integration of Eastern Mediterranean electricity markets with Europe’s electricity transmission system.
Regulators to assess cost sharing
The investment request allows the regulatory authorities of Cyprus and Israel to begin their assessment and work towards a joint decision on how the project’s costs will be allocated between the two countries.
The costs will be recovered through the project’s regulated revenues.
Following agreement between the two countries, a final investment decision (FID) will be required before financing procedures can begin.
IPTO said it also aims to attract additional investors to the Cyprus-Israel section, following the entry of Meridiam into the investment structure for the Greece-Cyprus section.
1,000 MW capacity
The GSI is an EU Project of Common Interest (PCI) and will have a nominal transmission capacity of 1,000 MW.
The project will use a 500 kV high-voltage direct current (HVDC) bipolar system.
On the Cyprus side, the cable system will connect to a converter station planned for Kofinou, while the corresponding converter station on the Israeli side will be built in the Hadera area.
The Cyprus-Israel interconnector will run for approximately 324 kilometres offshore, at depths ranging from 2,200 to 2,400 metres.
The link will allow electricity to flow in both directions, enabling the direction of power transmission to be reversed.
Also read: US lawmakers urge support for Great Sea Interconnector
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