Filenews 7 October 2022 - by Chrysanthos Manolis
Another step, symbolic but also of substance, will be taken next Friday (14/10) for the realization of a vision with huge future benefits for Cyprus, in which, until recently, few believed. In the presence of the President of the Republic, the European Commissioner for Energy Kadri Simson, the Minister of Energy Natasa Pilides and the Minister of Energy of Greece Kostas Skrekas, the inauguration of the projects for the EuroAsia Interconnector, the cross-border - private - project for the interconnection of the electricity networks of Greece and Cyprus in both directions [a total of 1,208km], in the next phase perhaps of Israel, will take place in the Presidential Palace in both directions (a total of 1,208 km).
The works on the ground are expected to start soon, in an area near Kofinou, under the management of the German Siemens, with the aim of being completed in 2027. The 'double' cable to be used will be supplied by the Norwegian HVDC Nexans.
With the operation of the interconnection, Cyprus will cease to be the only isolated energy market in the EU and will be able to import cheap energy from European markets, in order to develop competition and energy security, but also to export electricity, based on a very flexible system for changing the direction of the flow in the cable.
The people of the EuroAsia Interconnector firmly believe, based on studies, that Cyprus has all the backgrounds to develop into an exporter of electricity that will be produced, at a very low cost, from renewable energy sources and channelled to European buyers. The operation of the interconnection will allow a large increase in the production of electricity from photovoltaics, even if there is no development of cheap energy storage or upgrade of the EAC network by then.
A key pillar of the vision of interconnection with the European network, of which the EU is also aware, is the operation of the EuroAsia Interconnector for the benefit of Greek Cypriots and Turkish Cypriots, either as producers and exporters, or as consumers, given that already, in the context of implementing confidence-building measures, the EAC network is connected to the network that supplies electricity to the occupied territories.
The interconnection project is financed with €657 million from the EU, through the 'Uniting Europe' programme. This is the largest project funding in Cyprus, but also the largest funding for such a project in the EU. In addition, the project will be financed with €100 million from the Cyprus Recovery Plan. The total cost, following the recent surge in the prices of raw materials, is estimated at close to €1.7 billion. Agreements on additional financing have already been concluded, including from the European Investment Bank (EIB).
The upheaval in the market and Calvary
The people of the EuroAsia Interconnector, and personally the CEO Nasos Ktoridis, have had to climb a real mountain in the last many months in order to be able to complete the very demanding procedures for the finalization of the sponsorship of the €657 million. The successful outcome of the negotiations on additional funding from other organisations and, above all, on the formalisation of agreements that have been in the works a long time ago, to secure the equipment and raw materials for the ambitious project, in particular the double cable that will finally connect Cyprus with the European electricity network, with Crete as the first point of contact. Although the preparatory work had started on time, the crisis in the supply chain, caused in 2021 due to the pandemic, but even worse the crisis from the invasion of Ukraine, caused an unprecedented reversal in the European markets, with the result that the commitment / purchase of the necessary equipment and its delivery in time to the EuroAsia Interconnector became a very difficult undertaking, due to the huge and urgent demand that exists for similar materials.
POINT OF VIEW
With good to work
Yes, this is good news for Cyprus. And it comes at a time when expensive electricity is threatening to destroy hundreds of businesses, large and small, and is wiping out household incomes. The CEO of the EuroAsia Interconnector can now say that the many years of painstaking and expensive preparation is coming to an end and with the ceremony next Friday at the Presidential Palace begins a new adventure, the construction of the infrastructure and the laying of the cable of a thousand megawatts for the interconnection with Crete and through it with the European electricity network. The conditions are created for the import of cheaper electricity in Cyprus, but - as the company insists - mainly for exports of green energy. Good luck.
