The Council of Ministers approved on Tuesday a proposal by the Energy Ministry regarding the electricity interconnection between Cyprus and Crete (Great Sea Interconnector – GSI), the competent Minister George Papanastasiou has announced.

In statements to the media on Tuesday afternoon, the Minister said that the Republic of Cyprus will pay €25 million per year for five years, strictly, to subsidize a possible increase in electricity bills, from 1/1/2025-31/12/2029 so that consumers will not bear the burden of this increase.

Papanastasiou noted that the project will contribute to lifting Cyprus’ energy isolation, as it will connect the national electric energy system with the respective electricity systems and will increase energy security.

He went on to say that the project is particularly significant for growth and the prosperity of the inhabitants of the island, noting that the aim is to reduce the cost of electricity, through the electricity interconnection, by importing natural gas and via the use of renewable energy sources.

Moreover, he said that the project’s significance is verified by the fact that the EU approved its financing through the Connecting Europe Facility with the record amount of 657 Euros.

According to the Minister of Energy, the Council of Ministers decided that the Republic of Cyprus will pay €25 million per year strictly, for 5 years, to subsidize the increase that may occur in electricity bills for the right to recover costs during the construction period interconnection, i.e. from 1/1/2025-31/12/2029, so that consumers do not bear the burden of the increase.

This money will come from the Consolidated Fund of the Republic of Cyprus and more concretely from the pollution rights auction system and the first installment will be included in a supplementary budget.

“Today’s decision of the Council of Ministers is the culmination of many consultations with all the stakeholders and the clarifications that have been given so that the Republic of Cyprus has before it real data regarding the financial, technical and legal aspects of the project”, Papanastasiou pointed out.

He added that the Government demonstrated “the necessary responsibility and due diligence that should characterize the decision-making regarding projects of such scope, with the sole aim of serving the interests of the Cypriot people, to whom we are accountable.”

The Minister noted that in the immediate future, and based on the road map that has been drawn up, the Government will be in constant communication, both with Greece and with the European Commission, for the further progress of the implementation of the project, but also with parties that have already shown a real interest in participating in the project.

A meeting of all GSI stakeholders took place a week ago, at the Presidential Palace, under Cyprus President Nikos Christodoulides, to discuss the GSI issue.