Greece, Cyprus Seek EIB Funding for Great Sea Interconnector Project

The joint initiative by Cyprus and Greece to secure financing for the Great Sea Interconnector (GSI) project from the European Investment Bank (EIB) underscores the strategic importance of this energy infrastructure for both nations. The letter, dispatched by Environment and Energy Minister Stavros Papastavrou and his Cypriot counterpart Michalis Damianos, signals a unified front in pursuing this critical project. By emphasizing GSI's inclusion in their National Energy and Climate Plans and referencing the September 2024 Memorandum of Understanding, the ministers aim to provide the EIB with the necessary assurances regarding the project's political backing and strategic alignment with European energy objectives.

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and the two Member States have included the GSI in their National Plans for Energy and Climate

From our vantage point at Ta Nea, this move is a testament to the deepening energy cooperation between Cyprus and Greece. The GSI is not merely an infrastructure project; it is a vital component of our shared vision for a secure and diversified energy future, reducing reliance on fossil fuels and enhancing grid stability. The EIB's potential involvement is particularly significant, as their expertise can provide invaluable assessments of the project's impact on the electricity market dynamics and overall system operation. This collaboration is essential for navigating the complexities of large-scale energy projects and ensuring their successful implementation.

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Athens and Nicosia signed a Memorandum of Understanding regarding the further progress of the project.

Furthermore, the ministers' insistence on consistency with the latest National Plans for Energy and Climate, the ENTSO-E Ten-Year Network Development Plan, and EU energy and climate policy goals highlights the project's adherence to the highest standards of European energy governance. This alignment is crucial for attracting investment and ensuring the project's long-term viability. The fact that ENTSO-E has recognized GSI as the sole approved interconnection project for Cyprus with the European grid, while rejecting Turkish proposals, reinforces the project's strategic significance and Cyprus's central role in regional energy security.

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the involvement of the EIB at this stage is extremely important, as it could also provide particularly useful assessments of the impacts of the interconnection on the electricity market dynamics, as well as on the overall operation of the system.

This concerted effort by Cyprus and Greece to advance the GSI project reflects a pragmatic approach to energy policy, prioritizing tangible solutions that strengthen regional energy resilience and contribute to the EU's green transition. The project's success is intrinsically linked to the broader energy security of the Eastern Mediterranean and Europe as a whole, and securing EIB financing would be a major step towards realizing this ambitious vision.

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it is essential to ensure consistency with the most recent National Plans for Energy and Climate, the ENTSO-E Ten-Year Network Development Plan, as well as the energy and climate policy objectives of the European Union.