Cyprus minister hails moves to connect island, Israel to European electricity grid

NICOSIA, Cyprus (AP) — Cyprus’s energy minister on Friday hailed the entry of French investment company Meridiam as a backer to the Great Seas Interconnector project, an electricity cable that will connect Europe’s power grid with that of Cyprus and eventually Israel.The ambitious project would not only end Cyprus and Israel’s energy isolation, but would be an important building block for a new energy and trade route to the Gulf and India that the European Union is pursuing.But the project is now tied up in red tape over its real cost above an earlier estimate of $2.2 billion. A European Investment Bank report that’s due in the next few months will offer clarity over its cost.That’s important for Cyprus because under an existing agreement, Cypriot energy consumers would have to put up as much as 63% of the cable’s construction cost, meaning a significant jump in electricity prices.Additional private investment…
Cyprus's Energy Minister Michael Damianos announced that French investment company Meridiam is backing the Great Seas Interconnector project, an electricity cable designed to connect Cyprus and eventually Israel to Europe's power grid. This initiative aims to end energy isolation for Cyprus and Israel and establish a new energy route to the Gulf and India. The project's estimated cost, initially $2.2 billion, is under review by the European Investment Bank, with an upcoming report expected to clarify the final figure. The EU has already committed $760 million, and additional private investment is being sought to reduce the financial burden on Cypriot consumers, who currently face covering up to 63% of the construction cost.
"It's a very important project for Europe because it connects Cyprus which is isolated to the European grid. And the idea is to then proceed and connect to Israel," Damianos stated.
Separately, Damianos confirmed that natural gas from the Cronos field off Cyprus, developed by TotalEnergies and Eni, is expected to supply European markets by March 2028. This makes the East Mediterranean an alternative energy source for Europe amid geopolitical shifts. The Cronos gas will be piped to Egypt for liquefaction and then shipped to Europe. Other gas fields, Glaucus, Pegasus, and Aphrodite, are also in various stages of development, with ExxonMobil and QatarEnergy expecting gas from Glaucus and Pegasus by 2033, and a decision on Aphrodite by a Chevron-led venture anticipated in summer 2027. A portion of the Aphrodite field extends into Israeli waters, with an arbitrator expected to determine Israel's share next month.
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