The Great Sea Interconnector (GSI) has reached a new milestone after Greek transmission system operator ADMIE submitted an investment request to the regulatory authorities of Cyprus and Israel for the Cyprus-Israel electricity interconnection.
According to ADMIE, the move forms part of the European regulatory framework under the TEN-E Regulation and marks the next step towards implementation of the project.
The development comes a week after the signing of an agreement between ADMIE and French investment group Meridiam, under which Meridiam will become the majority shareholder in the Great Sea Interconnector company. It also follows discussions between Greek Energy Minister Stavros Papastavrou and his Israeli counterpart Eli Cohen aimed at advancing the project.
Studies confirm viability
The investment request follows completion of the required cost-benefit analysis (CBA) and the proposal for cross-border cost allocation (CBCA).
The studies were prepared following consultations with authorities and energy-sector stakeholders in both countries, including the Cyprus Transmission System Operator (TSOC) and Israel's system operator NOGA.
According to ADMIE, the findings confirmed the project's economic viability across all scenarios examined.
The studies also concluded that the interconnector would make a significant contribution to:
- Energy security.
- Greater integration of renewable energy sources.
- Further integration of Eastern Mediterranean electricity markets with the European power system.
Regulators to decide cost allocation
The submission of the investment request enables Cyprus' and Israel's regulatory authorities to begin evaluating the project and reach a joint decision on how costs will be allocated between the two countries.
Those costs would ultimately be recovered through the project's regulated revenues.
ADMIE said it continues to work closely with regulators, transmission operators and other stakeholders to advance the technical, regulatory and financing aspects of the project.
Following agreement between the two countries, the process will move towards a Final Investment Decision (FID), which will pave the way for financing arrangements.
ADMIE has also indicated that it hopes to attract additional investors for the Cyprus-Israel section, similar to Meridiam's participation in the Greece-Cyprus segment.
Project details
The Great Sea Interconnector, a European Union Project of Common Interest (PCI), will have a transmission capacity of 1,000 MW and operate through a 500 kV high-voltage direct current (HVDC) system.
Under current plans:
- The Cypriot converter station will be located in Kofinou.
- The Israeli converter station will be built in the Hadera area.
- The offshore cable between Cyprus and Israel will extend for approximately 324 kilometres.
- Laying depths are expected to range between 2,200 and 2,400 metres.
The interconnector will allow for two-way electricity flows, enabling power transfers between the two countries in either direction.
