**Great Sea Interconnector Moves Ahead with Cyprus-Israel Investment Request**
The Great Sea Interconnector (GSI) project has taken a significant step forward as Greece's Independent Power Transmission Operator (Admie), the project's promoter, submitted an investment request to the energy regulators of Cyprus and Israel. This development, announced on Thursday, represents a key phase in the implementation of the project under the European Union's Trans-European Networks for Energy (TEN-E) framework.
The GSI aims to establish a strategic electricity link between Greece, Cyprus, and Israel, enhancing energy security and facilitating the integration of renewable energy sources. The investment request follows a recent agreement in which French infrastructure investment group Meridiam became the majority shareholder in the GSI project company. This move is expected to bolster the project's financial backing and operational capabilities.
The advancement of the GSI project also comes on the heels of discussions between Greek Energy Minister Stavros Papastavrou and Israeli Energy Minister Eli Cohen, focusing on expediting the Cyprus-Israel segment of the interconnection. This dialogue underscores the political will to enhance energy cooperation in the region.
In preparation for the investment request, Admie completed a comprehensive cost-benefit analysis (CBA) and a proposal for cross-border cost allocation (CBCA), both of which are essential under EU regulations. These studies were conducted after extensive consultations with the relevant authorities in Cyprus and Israel, including the energy ministries and the respective transmission system operators. The analyses considered updated forecasts on electricity demand, renewable energy deployment, grid development, and future energy system requirements.
The findings of the studies indicated that the Cyprus-Israel interconnection is economically viable across various scenarios. Furthermore, the project is expected to significantly enhance the security of electricity supply in the region, promote greater integration of renewable energy sources, and connect the eastern Mediterranean electricity market with the broader European grid.
With the submission of the investment request, the next step involves a formal assessment by the energy regulators in both countries. They will need to reach a joint decision regarding the allocation of project costs and how these will be recovered through regulated revenues. Admie has expressed its commitment to working closely with the relevant authorities, transmission system operators, and other stakeholders to address the technical, regulatory, and financing aspects necessary for the project's success.
Once both Cyprus and Israel approve the investment framework, the project will advance to a final investment decision (FID), paving the way for financing arrangements to be established. Admie has also indicated its intention to attract additional investors for the Cyprus-Israel section of the interconnector, following a similar model used for the Greece-Cyprus leg, where Meridiam recently joined the investment consortium.
The Great Sea Interconnector is recognized as a Project of Common Interest (PCI) by the European Union, highlighting its significance in enhancing regional energy cooperation. The interconnector is designed to have a transmission capacity of 1,000 megawatts (MW) using a 500 kilovolt (kV) high-voltage direct current (HVDC) system. Plans include constructing a converter station in Cyprus at Kofinou and another in Israel in the Hadera area. The submarine cable that will link the two countries is projected to span approximately 324 kilometers, with installation depths ranging from 2,200 to 2,400 meters.
The GSI project has also garnered attention from the United States, where a bipartisan group of lawmakers has urged Secretary of State Marco Rubio and the chief executive of the U.S. International Development Finance Corporation (DFC), Ben Black, to prioritize the interconnector. They argue that the project is strategically important for strengthening cooperation, enhancing energy security, and advancing U.S. interests in the Eastern Mediterranean region.
As the GSI project progresses, it is poised to play a crucial role in the energy landscape of the Eastern Mediterranean, fostering collaboration among Greece, Cyprus, and Israel while contributing to the EU's broader energy goals.