**Title: Damianos: Government Supports Great Sea Interconnector but Cautious About Consumer Costs**
The Cypriot government has expressed its backing for the Great Sea Interconnector (GSI) project, while also emphasizing the importance of assessing its economic viability and potential impact on consumers. Energy Minister Michalis Damianos made these remarks in an interview with Kathimerini on Sunday, highlighting the need for a balanced approach to the ambitious energy initiative.
Damianos stated that preliminary calculations indicate the GSI could lead to an increase in electricity prices per kilowatt hour. He underscored the necessity for caution, suggesting that if costs were to escalate significantly, the government might need to seek additional funding from European or other sources to alleviate the financial burden on consumers.
The GSI aims to enhance Cyprus's electricity supply security and has considerable geopolitical significance. Damianos noted that the interconnector would link Cyprus to Crete and subsequently to Israel, forming part of the broader India-Middle East-Europe corridor (Imec). This strategic connection is seen as vital for the region's energy stability.
While the government is keen on participating in the project, Damianos pointed out that merely holding a minority stake in the GSI does not guarantee a substantial influence over decision-making processes. He mentioned that alternative strategies are being explored, including adjusting the repayment period for costs associated with the project, to ensure that the financial implications for consumers are managed sustainably.
The Minister also revealed that President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis have agreed to review the technical and economic parameters of the GSI. A study by the European Investment Bank (EIB) is anticipated to be completed by the end of the year, which will provide a clearer understanding of the project's final costs.
Damianos emphasized that the overall price of electricity in Cyprus is influenced by multiple factors, not solely the interconnector. He cited the completion of the Vasiliko project, the importation of natural gas for electricity generation, and the expansion of energy storage capabilities as critical elements that could help mitigate costs.
When questioned about the possibility of Cyprus withdrawing from the GSI if it is deemed unviable, Damianos acknowledged the complexity of the legal situation, given prior commitments made by the previous government. He stated that any decision regarding participation in the project's share capital would be made following the completion of the EIB study.
In addressing concerns about the project's geopolitical risks, Damianos noted that the involvement of French company Meridiam has alleviated some apprehensions. He highlighted the support of France, the European Union, Israel, and the United States for the GSI's implementation, suggesting a robust international backing for the initiative.
The timeline for the GSI's completion is projected for around the end of 2031, although Damianos cautioned against providing a definitive schedule due to the project's complexity.
Additionally, Damianos discussed the resumption of maritime surveys related to the GSI, stating that a Navtex notice from the Greek government is expected in the coming weeks. He dismissed claims that private business interests in Cyprus were exerting pressure on the government regarding the GSI's implementation, asserting that interest from energy companies in Cyprus's exclusive economic zone (EEZ) remains strong. A fourth licensing round for energy exploration is anticipated by the end of next year.
In a related development, French President Emmanuel Macron reportedly informed Mitsotakis during a recent meeting in Paris that France is prepared to initiate surveys in the Levant. Using a French-flagged vessel for these surveys would place the responsibility for managing any potential interference from Turkey with Paris, according to sources cited by Kathimerini. The surveys are expected to commence between late September and early November.
As the GSI project progresses, the Cypriot government remains committed to balancing the need for energy security with the economic implications for its consumers, ensuring that the benefits of such a significant undertaking are felt broadly across the population.