Cypriot households could enjoy significant electricity cost reductions thanks to a proposed subsea cable linking the island to Greece’s power grid. The Great Sea Interconnector, a €1.9 billion project, is estimated to deliver annual savings of up to €400 per household consuming an average of 5 megawatt-hours.
Officials from Greece’s Independent Power Transmission Operator (Admie), the project’s current promoter, presented a cost-benefit analysis to Cyprus’s energy ministry. The analysis highlights the stark contrast between a connected and isolated Cypriot grid.
“The results overwhelmingly favor interconnection with the European mainland,” stated Manousos Manousakis, Chairman and CEO of Admie.
The potential benefits outweigh the anticipated construction costs for Cypriot consumers. While each household would contribute roughly €25-€30 annually between 2025 and 2029 (the construction period), these contributions would be recouped within the first year of operation through electricity bill savings.
While Manousakis remained tight-lipped on Cyprus’s investment decision, he acknowledged the advantages of state involvement. Direct investment by Cyprus would not only provide political backing but also generate revenue for further electricity cost reductions.
Admie proposes a fee levied on Cypriot consumers from the project’s outset, a standard practice for recouping upfront capital expenditures. Manousakis expressed confidence that Cyprus’s energy regulator would approve this approach.
Energy Minister George Papanastasiou confirmed receipt of the cost-benefit analysis and a forthcoming government review by an external consultant. This assessment will be crucial in determining the government’s final decision on potential investment, which could reach €100 million.
The Great Sea Interconnector, previously known as the EuroAsia Interconnector, assumed its current name after the original Cypriot project developer stepped down in October 2023. Admie, with a majority stake held by the Greek state, is now leading the project. The European Commission has pledged significant funding (€657 million) through the Connecting Europe Facility, with an additional €100 million grant secured from the Cyprus Recovery and Resilience Plan.
