Negotiations between the regulatory authorities of Greece-Cyprus and the Independent Power Transmission Operator (IPTO) had a happy ending with the parties reaching an agreement for the electrical interconnection between the two countries, the so-called Great Sea Interconnector project.
The negotiations lasted many hours following Nexans’ ultimatum amidst deadlocks threatening the progress of the project.
According to sources, IPTO finally agreed to the proposal submitted by the Cyprus Energy Minister George Papanastasiou last week.
The solution was found as the Cypriot government decided to finance the IPTO costs from 2025 until the operation of the project in 2030 with 25 million euros per year and a total of 125 million euros. The funds will be raised from the state’s revenues and more specifically from the trading of pollution rights and not directly from consumers.
Any other sums that will be considered reasonable expenses during the construction, will be covered from the consumers. Essentially in this way, the main pending issue for the finalization of the institutional framework of the project which was related to the process of recovering the costs of the construction of the cable has been resolved.
Nexans, the cable’s manufacturing company, had sent an ultimatum to the project’s implementing body, IPTO, informing them that it would proceed with the final stoppage of the project if the outstanding issues were not resolved, which would in turn mean the issuance of the final order (Full Notice to Proceed) from the IPTO to the company.
The deadline was set for September 2, however, according to sources with knowledge of the matter, negotiations continued until late last night in order to find “common ground.”
In the second year, the other pending matter that has to be resolved for the finalization of the regulatory framework concerns the geopolitical risk.
