The NAVTEX required for survey work on the Great Sea Interconnector (GSI) is expected to be issued within the next two to three weeks, according to Energy Minister Michalis Damianou, paving the way for the next phase of the Cyprus-Greece electricity interconnection project.
Speaking to Politis Radio, Damianou said the Republic of Cyprus will pay €25 million once the NAVTEX is issued, in line with the agreement governing the project.
The minister also discussed the cost of the interconnector, plans for energy storage, developments at Vasiliko and ongoing negotiations with Israel.
GSI costs and Cyprus' share
Damianou said the Cyprus Energy Regulatory Authority (CERA) has so far approved expenses of €82 million, while claims submitted by IPTO (ADMIE) exceed €300 million.
He added that a due diligence study by the European Investment Bank is expected by the end of the year and will help assess the project's cost structure.
Describing the GSI as a strategically important geopolitical project, Damianou said it would strengthen Cyprus' electricity security and enable power imports from Europe under certain conditions.
Consumers are expected to begin contributing through electricity bills only when the interconnector becomes operational, something currently projected for late 2031 or 2032, provided the project progresses as planned.
Under European cost-allocation criteria, Cyprus will cover 63% of the project's cost, while Greece will cover 37%.
€20m energy storage scheme planned
Damianou announced plans for an energy storage programme worth approximately €20 million covering 2027 and 2028.
The scheme will target commercial and industrial buildings, with a formal announcement potentially coming by the end of 2026.
Implementation is expected to begin during the first months of 2027, although legislative amendments will first be required to regulate the safe installation of battery systems.
Eight firms interested in Vasiliko project
On the Vasiliko project, Damianou said eight companies have expressed interest and that bids are currently being evaluated.
The government's goal is to sign an agreement with the selected company before summer 2027, while completion of the project is expected to take at least 18 months.
Based on submitted bids, the project is estimated to cost around €180 million.
The minister said Cyprus could have access to natural gas by 2029 and that the EAC's generators at Vasiliko should be phased out by 2030.
Regarding the vessel Prometheas, he said authorities are evaluating offers for a possible lease abroad, although Cyprus will still require the vessel before the Vasiliko project is completed.
Talks with Israel continue
Referring to negotiations with Israel over the Aphrodite and Yishai gas fields, Damianou said commercial issues have already been agreed.
He added that discussions are continuing on outstanding legal matters, with the aim of finalising an agreement in the near future, although he did not rule out further delays.
