Filenews 24 January 2024 - by Chrysanthos Manoli
The people of the international design and service firm DNV (Det Norske Veritas), based in Norway, presented yesterday to the Minister of Energy George Papanastasiou, officials of the Ministries of Energy and Finance and associates of President Christodoulides at the Presidential Palace, the study they carried out on the viability of the electricity interconnection between Cyprus and Crete (possibly with Israel, at a later stage), its expected benefits for the Cypriot electricity market and its geopolitical importance.
Although no statements were made and the study was not made public, Phileleftheros information states that in the crucial question from the Ministry of Finance whether Cyprus will become after the operation of the interconnection an importer of green electricity from the interconnected countries (mainly Greece but also other EU members) or whether it will become an exporter of electricity from production companies in Cyprus, They replied that, as the Cypriot energy market operates today and with the distortions observed, in the early stages of the interconnection Cyprus will be a net importer of electricity from RES.
During the discussion and presentation of the study, it was made clear by DNV's researchers that by achieving interconnection and removing energy isolation, the conditions are created for the import of much cheaper electricity, compared to electricity produced today from oil, which is additionally burdened with expensive pollutants (which increase by about 25% the final charge of the kilowatt hour).
In addition, the electricity imported through the interconnection will obviously be cheaper than the green electricity produced by private photovoltaics today in Cyprus and is sold only to a small group of commercial-industrial consumers, at a price slightly lower than the EAC price, ensuring a very high rate of profit. If the current distortions (lack of competition between producers from renewable energy sources, non-making of offers for the sale of green electricity at the lowest possible price, delay in the use of natural gas for lower pollutant charges, etc.) are removed through the future operation of the competitive market or through modifications to the legal status of the market, the researchers of the international firm said that there are prospects for Cyprus to become an exporter energy, taking advantage of its very good solar potential.
These reports by DNV's researchers converge to a large extent with the estimates of executives of ADMI, the new operator of the Great Sea Interconnector (former EuroAsia), according to which the interconnection (expected to be completed in 2029 or 30) will provide significantly cheaper electricity on the one hand, but on the other hand will harm the interests of private companies that produce or supply electricity from RES today in Cyprus. at prices much higher than those for green electricity in other EU countries. As a Greek technocrat told "F" recently, if the Cypriot electricity market continues to operate with the current distortions (with expensive electricity from oil and expensive electricity from photovoltaics), then with the operation of the interconnection many companies will be threatened with "sudden death".
Multifaceted benefit, study says
According to DNV, in all three categories of assessment of the impact of the electricity interconnection, the sign is positive, which greatly reinforces the assessment that it is only a matter of time before the Government decides to participate in the investment, through the purchase of shares in the company Great Sea Interconnector, at a cost, in the first phase, of approximately € 100 million.
The interconnection provides security of supply to the Cypriot economy and households, offers opportunities to reduce energy costs and improve the competitiveness of the economy, but also provides significant geopolitical benefits, especially if the interconnection with Israel or other neighbouring countries proceeds later.
DNV also considers the contribution of the cable to the energy security of Cyprus to be much more important than any contribution that energy storage systems (batteries) can make.
