27/01/2022 14:54
The €657 million funding from the EU on the EusoAsia Interconnector paves the way for implementation of the electricity connection between Cyprus, Greece and Israel and ends Cyprus’ energy isolation, Minister of Energy, Commerce and Industry Natasa Pilides said on Thursday, welcoming the EU’s decision.
In statements, she said it was the largest amount of funding received for a project of the Republic of Cyprus.
Originally, the amount of €687 million was requested for the construction of the Cyprus-Crete section. The total cost of this phase is €1.57 billion.
The Minister said that the grant will allow the start of the construction for the Cyprus-Crete section, adding that the signing of the grant agreement will take place in the summer.
The EuroAsia has also secured €100 million through the Cyprus National Recovery and Resilience programme which will be allocated according to the implementation of the project’s milestones.
Pilides said that the project constitutes the cornerstone of efforts for transition to a green economy, fully aligning with the policies for the protection of the environment.
She said the project will facilitate the attraction of relevant investments as well as the integration of additional Renewable Energy Resources projects in the cooperation of Cyprus, Greece and Israel.
EuroAsia Project Director, George Killas said the European Commission’s decision is an honour and an acknowledgment of the efforts that began in 2011 to lift Cyprus’ energy isolation as it continues to be the only EU member that is completely energy isolated.
The EuroAsia Interconnector, he added, is perhaps the most important energy infrastructure project for the whole of Cyprus, ensures achieving the energy goals in the framework of transition to a green economy and contributes to an increase of RES penetration and the reduction of carbon dioxide emissions and offers significant, economic, social and environmental benefits to Cypriot and European consumers.
According to Killas, the project consists of the electrical interconnection of the Cyprus-Greece systems through Crete, and Cyprus and Israel through undersea cables with terrestrial HDVC conversion stations at each connection point and will have a total capacity of 1,000 Megawatts (MW) and the possibility of expansion to 2,000 MW with a total interconnection length of 1,208 km.
Construction work will begin in 2022 and the electrical connection of the EuroAsia interconnector will be completed by the end of 2025 with a view to begin operation in the first half of 2026, he added.
Replying to a question where the rest of the funds will come from, Pilides said that together with the 100 million euros from the "Cyprus-Tomorrow" national plan, the funding of the project so far reaches 50% of the total cost.
The implementing entity, she said, is already in negotiations with banks and investors adding the funding from the EU attracts more interest by investors because it makes the project more feasible and sustainable.
Regarding the EastMed project, Pilides said it remains in the list of Projects of Common Interest, adding that this is expected to remain for some time according to EU categorisation for natural gas projects, noting the financial viability is the main criterion in deciding whether it can be done or not.
On the ExxonMobil drilling in block 10 of the Exclusive Economic Zone, Pilides said the drilling has reached the required depth, and now data is being collected and the process will be completed in March.
The good thing is that it is progressing smoothly without delays, she added, noting it is too early for results.