Cera to meet on GSI details
The Cyprus electricity regulatory authority (Cera) convened early on Friday to approve a revised regulatory framework for the Great Sea Interconnector (GSI).
The meeting came after President Nikos Christodoulides met Greek Prime Minister Kyriakos Mitsotakis in Athens on Thursday, affirming the state’s commitment to enter as a shareholder in the €1.9 billion plus subsea cable project linking Cyprus to Greece.
A €100 million equity investment is foreseen upon completion of due diligence and the establishment of a special purpose vehicle (SPV), for which deliberations involving third countries are at an advanced stage, the Cyprus News Agency reported.
Among other things, a cross-border cost allocation (CBCA) will be included in the amended framework, allocating a 50-50 division between the Cypriot and Greek consumers in the event the project stalls due to geopolitical events.
During the construction phase, that is from January 1, 2025 to December 31, 2029, the allocation of the capital expenditure will remain at 63 per cent and 37 per cent for Cypriot and Greek consumers respectively.
On September 17, the ministerial cabinet decided to cover the potential increase on electricity bills during the construction period with €25 mil per annum to be secured from the country’s emissions trading system (ETS) funds, with a strict cap of €125 million for the five-year period.