Cyprus announced that it approved a proposal by the Energy Ministry for the Great Sea Interconnector (GSI). The decision was finalized during the cabinet meeting.
The Minister of Energy George Papanastasiou stated that the Republic of Cyprus will pay 25 million euros per year strictly, for 5 years, as a subsidy for the possible increase in consumer bills, from 1/1/2025-31/12/2029, so that the consumers not to be burdened by the increase.
Papanastasiou said that this project contributes to the removal of Cyprus’ energy isolation, as it will connect the national electricity system with corresponding European systems and increase energy security.
He noted that the project is of particular importance for the development and well-being of the residents, stating that the goal is to reduce the price of electricity, through electrical interconnection, the advent of natural gas and RES.
As he mentioned, the importance of the project is confirmed by the fact that the EU approved funding from the “Connecting Europe” mechanism with the highest historical amount of 657 million euros.
The amount will be disbursed from the pollutant rights auction system, with the first installment included in a supplementary budget.
