Great Sea Interconnector cost in Cyprus may exceed €1.9 billion
In Cyprus, the cost of the Great Sea Interconnector submarine power link project may substantially exceed the latest estimate of €1.9 billion. Finance Minister Makis Keravnos told lawmakers this, Cyprus Mail reports.
What the estimate includes
According to Keravnos, the €1.9 billion figure, which media outlets often describe as the project's capital expenditure, covers only the cost of the submarine cable. Insurance coverage, storage facilities and maintenance work must also be added to the final price.
The minister stressed that without up-to-date financial data and a clear understanding of the project's viability, the government cannot decide on state participation in the capital of the Great Sea Interconnector. According to him, such a major investment would affect public finances and spending limits set by European Union rules.
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Doubts over electricity prices
Keravnos also questioned whether launching the energy interconnector would reduce electricity costs, as had previously been claimed. He noted that if the state does not invest in the project, consumers will bear its costs.
The minister referred to a 2017 estimate by Cyprus' energy regulator, according to which consumer costs if the GSI operated could amount to 3.7 euro cents per kilowatt-hour. According to Keravnos, the government is not certain that the GSI will ensure a reduction in energy prices.
He also mentioned a preliminary feasibility study conducted by a US company on behalf of the government. According to the minister, its results were not encouraging. The authorities requested an updated study, but its conclusions are still awaited.
