Cyprus has approved the construction of a 1.9 billion euro undersea electricity cable connecting its grid to Greece, supported by a 657 million euro funding from the European Union. The project aims to reduce electricity costs for consumers and end energy isolation. The Cypriot government will contribute 25 million euro annually over five years, ensuring no increase in taxpayers’ bills. The cable, set to be completed by 2029, forms part of an initiative to introduce natural gas to Cyprus’ energy mix, promoting economic development and citizen welfare.
Upon completion, consumers could see a 40% drop in electricity bills, with operating costs shared between Cypriot and Greek users. The project offers a guaranteed 8.3% return on investment, attracting interest from companies like TAQA. The cable’s lifespan is expected to bridge to Israel’s energy grid, enhancing regional energy security. Despite risks, the project is progressing with France’s Nexans handling the cable construction and Germany’s Siemens for onshore transformers.
The dynamic collaboration promises a groundbreaking achievement in regional energy connectivity, fostering economic prosperity and energy security for Cyprus and the larger Mediterranean region.