The investment request submitted to the Regulatory Authorities of both countries by IPTO, as the project promoter of the Great Sea Interconnector (GSI), marks the acceleration of the Cyprus-Israel electrical interconnection, in accordance with the European framework (TEN-E Regulation).
This new development aligns with the firm strategy of the Greek government to promote the Great Sea Interconnector as a project of exceptional geopolitical and energy significance for Greece, Cyprus, Israel, and Europe.
It comes just one week after the signing, at the Maximos Mansion, of the IPTO–Meridiam agreement for the entry of the French investment group as a majority shareholder in the Great Sea Interconnector company, and follows a phone call between the Minister of Environment and Energy, Stavros Papastavrou, and his Israeli counterpart, Eli Cohen, to advance the Cyprus–Israel electrical interconnection. These successive developments create a new and strong momentum for the implementation of the overall project.
The investment request for the Cyprus-Israel interconnection is the necessary next step, under the European framework, toward the project's implementation, following the completion of the required Cost-Benefit Analysis (CBA) studies and the proposal for the Cross-Border Cost Allocation (CBCA).
During the preparation of the studies, an extensive consultation and data exchange process took place with the competent entities of both countries, including the Ministries of Energy, the Transmission System Operator of Cyprus (TSOC), and the System Operator of Israel (NOGA). The goal was to incorporate the most up-to-date assumptions regarding the development of the electricity systems, demand growth, RES penetration, and required infrastructure.
The results of the studies confirm the economic viability of the project in all analyzed scenarios. Specifically, they highlight the project's significant contribution to security of supply, RES penetration, and the further integration of the Eastern Mediterranean electricity markets with the European electricity transmission system.
The submission of the investment request is a prerequisite for launching the evaluation process by the competent Regulatory Authorities of Cyprus and Israel, leading to a joint decision regarding the cost allocation between the two countries, which will be recovered through the project's regulated revenues.
Since assuming the role of Project Promoter for the entire project, IPTO has been in continuous cooperation with the relevant authorities, Transmission System Operators, and other stakeholders of the countries to be interconnected, in order to advance the necessary technical, regulatory, and financial steps.
After the agreement between the countries, the Final Investment Decision (FID) will be taken, marking the start of the project financing procedures. IPTO's goal is to attract additional investors for the Cyprus-Israel interconnection segment as well, like the project's first leg (Greece-Cyprus interconnection) with Meridiam's entry into the investment scheme.
The GSI, a European Union Project of Common Interest (PCI), will have a nominal transmission capacity of 1,000 MW and will consist of a 500 kV bipolar High Voltage Direct Current (HVDC) system. According to the design, the connection point for the cable system on the Cyprus side will be the Converter Station to be developed in Kofinou, while on the Israeli side, the corresponding Converter Station will be constructed in the Hadera area.
The offshore section of the electrical interconnection between Cyprus and Israel will have a length of approximately 324 km, with subsea laying depths ranging between 2,200 and 2,400 meters. The interconnection will feature bidirectional power transfer capability, allowing for the reversal of power flow direction.
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