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Cyprus Faces 63% Cost Burden For Electrical Interconnector Project

Cyprus is set to bear significant financial responsibility for the Great Sea Interconnector, a project linking Cyprus and Greece via an underwater cable, according to the Cyprus Energy Regulatory Authority (RAEK). Even without active participation in the project, Cypriot electricity consumers will shoulder 63% of the implementation costs. This decision stems from the Cross-Border Cost Allocation (CBCA) agreements between Cyprus and Greece, grounded in EU regulations.

RAEK’s President, Andreas Poulikkas, clarified this position in response to questions raised by MP Andreas Pasiourtidis. Despite the potential non-participation of Cyprus, the CBCA mandates that Cypriot consumers contribute towards the investment’s amortisation. The decision is crucial for securing €750 million in funding from the Connecting Europe Facility (CEF), with €657 million already granted. An additional €100 million in grants is still required to meet the CBCA conditions.

Failure to secure these funds would necessitate revisiting the CBCA, potentially increasing the financial burden on Cypriot consumers. The project’s operational cost recovery remains under review by the regulatory authorities.

Inclusion in the EU’s Project of Common Interest (PCI) list necessitates Cyprus’ support, highlighting the project’s strategic importance. The investor’s dossier, submitted to regulatory authorities, includes a detailed cost-benefit analysis, business plan, and substantiated CBCA proposal, emphasising the benefits to both Cypriot and Greek consumers.

The discussion in the Cypriot Parliament, led by various MPs, underscores the project’s implications for local consumers. The regulatory framework, governed by Cyprus’ Electricity Market Regulation Law and aligned with EU directives, indicates no parliamentary approval is needed, only the consent of national regulatory authorities.

This development marks a critical juncture for Cyprus’ energy strategy, potentially influencing the island’s energy independence and integration into the broader European grid. The outcome of this project will likely have far-reaching consequences for Cypriot consumers and the nation’s energy future.

Amazon’s AI Bets and Cost-Cutting Measures Pay Off, Boosting Stock by 5%

Shares of Amazon surged over 5% in after-hours trading on Thursday after the company reported stronger-than-expected third-quarter earnings. Amazon announced earnings per share of $1.43, alongside revenue reaching $158.9 billion, surpassing analyst projections of $1.14 per share and $157.2 billion in revenue, according to FactSet.

Key Financial Highlights

  • North American Sales: Amazon’s North American segment recorded a 9% year-over-year sales increase, totalling $95.5 billion.
  • AWS Growth: Amazon Web Services (AWS), the company’s cloud unit, posted $27.5 billion in revenue, marking a 19% rise compared to the same period last year.
  • Stock Movement: Although Amazon’s stock initially fell over 3% on Thursday before earnings were released, it rebounded significantly in after-hours trading. So far, Amazon shares are up almost 24% year-to-date.

Background on Amazon’s Strategy

Amazon’s recent efforts include major cost-cutting moves, guided by CEO Andy Jassy, to streamline operations since 2022. This restructuring has led to over 27,000 layoffs and the closure of initiatives such as Amazon’s telehealth and same-day delivery services. Despite these reductions, Amazon is doubling down on other key areas, like a $52 billion investment in nuclear energy to support data centers in Virginia, Mississippi, and Ohio. The company is also moving forward with **Project Kuiper**, aiming to build a satellite network of 3,236 units to broaden internet access worldwide—a venture projected to involve over $10 billion in launch costs across five years, according to analysts from Wedbush Securities.

Amazon’s Market Reach

July’s Prime Day achieved “record-breaking sales,” while the introduction of Amazon’s AI-powered shopping assistant, **Rufus** was rolled out to U.S. customers last month. Notably, Amazon had slightly missed expectations in the previous quarter and cautioned that intense news cycles could distract customers—a factor cited by CFO Brian Olsavsky during the second-quarter earnings call. Despite these challenges, the company’s annual revenue is expected to remain strong.

Noteworthy Figures

Amazon’s market capitalization has reached $1.96 trillion, making it the fifth-largest company globally, trailing behind Apple, Nvidia, Microsoft, and Google. Meanwhile, Jeff Bezos, who served as Amazon’s CEO until 2021, holds a net worth of $204.1 billion, much of which is tied to Amazon’s stock. Market fluctuations ahead of Amazon’s earnings report momentarily decreased Bezos’ wealth by around $6 billion. Bezos ranks as the second-richest American, after Elon Musk, on the Forbes 400 list.

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