In a significant shift from its previously hesitant position, Cyprus now appears ready to greenlight key steps for the Greece–Cyprus electricity interconnection project, the Great Sea Interconnector (GSI). The country’s Energy Regulatory Authority (RAEK) is reportedly preparing to issue critical decisions needed to advance the project.
During a videoconference held on July 31, which brought together the energy regulatory bodies of Greece (RAAEY) and Cyprus (RAEK), Greece’s Independent Power Transmission Operator (IPTO), and representatives from the European Commission, RAEK committed to approving the regulated revenue mechanism that will allow funds to be collected from Cypriot electricity consumers to support the project’s financing.
Regulatory Revenue Decision Expected Today
Sources indicate that RAEK is set to publish its decision today, July 31. This approval will authorize the collection of 13.3 million euros in 2025 through charges on Cypriot electricity bills. The Greek regulator, RAAEY, has already issued its corresponding decision, approving a 7 million euros contribution from Greek consumers.
These funds will be collected via regulated charges and transferred to IPTO, which is responsible for implementing the undersea cable project linking the two countries.
Ownership Issue Remains Pending
However, in Cyprus’s case, an additional regulatory decision is still required: the cable must be formally recognized as an asset under IPTO’s ownership. Without this designation, the transfer of funds cannot proceed.
RAEK has pledged to issue the necessary decision by the end of August, paving the way for IPTO to begin receiving the approved revenues and move forward with the infrastructure development.
The Great Sea Interconnector is a strategic energy project aimed at enhancing electricity connectivity between Cyprus and mainland Europe through Greece, significantly improving the island’s energy security and integration into the EU energy market.
