The Great Sea Interconnector (GSI), the planned electricity link between Israel, Cyprus and Greece and the European grid, will be on the agenda when Cyprus President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis hold their customary working meeting in New York later in September, on the sidelines of the UN General Assembly.
“Both sides want to lower the tone,” a source close to the matter told Politis.
The easing of tensions will serve as a backdrop for discussions on all aspects of the issue during the meeting to be held in late September in New York, on the sidelines of the UN General Assembly, between Cyprus President and the Greek PM Kyriakos Mitsotakis. “Both sides want to lower the tone,” a well-informed source on the developments told Politis.
President Christodoulides’ decision not to attend Tuesday afternoon’s general assembly of the Electricity Market Association (EMA), avoiding cameras and questions about the cable, is also noted as a sign of his intention to lower the tone.
The distance to be bridged by Christodoulides and Mitsotakis is not small, with public statements by both suggesting cancellation of the project. This is the prevailing perception, especially in Athens, where scenarios are already circulating about where Greece's independent transmission system operator ADMIE will use the cable being manufactured by Nexans. The likeliest option is the scheduled interconnections to the Dodecanese and the Eastern Aegean islands.
At the same time, Cyprus regards the project as an integral part of its energy policy. This was stressed at the EMA General Assembly in greetings delivered on behalf of President Christodoulides by Transport Minister Alexis Vafeadis, and by Dr. Constantinos Varnavas, Operations Director of the Cyprus Transmission System Operator (TSO).
President Christodoulides, referring to the government’s energy strategy actions, highlighted the “digitalization of networks and their interconnection with European markets.”
Dr. Varnavas noted that through the interconnection, “Cyprus will become part of the unified European market.” That is why the EU’s target model for electricity pricing has been adopted, to take effect on October 1, when the competitive energy market will be launched.
“The target model sets common rules for the unified market across Europe and aims to strengthen competitiveness and ensure all consumers can access energy at affordable prices (...). The target model prepares us for this development. Different countries, or more precisely, different bidding zones, one of which will be Cyprus, must follow common rules”, Varnavas explained.
In the meantime, a way must be found to close the gap, with late September serving as the new informal milestone.
According to nomisma.com.cy, “It will be very difficult and politically costly for both sides to announce that, due to disagreements between Cyprus and Greece, a project important for geostrategic, political, and economic reasons, especially for Cyprus, is being abandoned. Moreover, the determination of the European Union should not be underestimated: it insists on the project’s implementation, considering it crucial for regional energy security, and is funding it with the significant amount of €657 million.”
The Turkey factor
The elephant in the room is Turkey. It is worth noting that in New York, Mitsotakis is also scheduled to meet with Turkish President Recep Tayyip Erdoğan, although no date has been announced.
Criticism in Athens of the Greek government’s handling is that it miscalculated Turkey’s reaction, resulting in the incident near Kasos and the suspension of seabed surveys. This freeze sparked skepticism in Cyprus over whether the project will ultimately be built. Today Athens demands that Cyprus fulfill all its obligations before issuing a Navtex, a move that could trigger tensions in the Aegean, with the deployment of warships.
