A new stage of the Cyprus-Israel electricity interconnection project has begun

The Great Sea Interconnector (GSI) electricity interconnection project between Cyprus and Israel has moved to the next stage after the Greek operator ADMIE submitted an investment application to the regulatory authorities of both countries.

The submission of the application was the next step following the completion of cost-benefit studies and the preparation of a proposal for sharing expenses between the countries.

The regulatory authorities of Cyprus and Israel must now examine the project parameters and agree on a cost-sharing mechanism. The costs are expected to be recovered through regulated revenues from the operation of the project.

The project’s development followed several days after ADMIE reached an agreement with the French investment group Meridiam for the latter to become a majority shareholder in Great Sea Interconnector. Earlier, the energy ministers of Greece and Israel also discussed the project’s progress by phone. According to ADMIE, the studies were prepared in consultation with the relevant authorities and energy system operators of both countries. The analysis took into account electricity demand forecasts, the development of energy systems and renewable energy, as well as future infrastructure needs.

According to ADMIE, the study results demonstrate the project’s benefits for the security of energy supply and the more efficient use of renewable energy sources. Once Cyprus and Israel agree on a cost-sharing mechanism, a final investment decision (FID) is to be adopted. This will pave the way for the project’s financing procedures.

Great Sea Interconnector is an EU project of common interest. The interconnection is planned to have a capacity of 1,000 MW, with electricity transmitted via a 500 kV HVDC system. The subsea section between Cyprus and Israel will be approximately 324 kilometres long. The cable will be laid at a depth of between 2,200 and 2,400 metres.

A converter station is planned to be built in Kofinou in Cyprus and in the Hadera area in Israel. The interconnection will be designed for bidirectional electricity transmission, allowing the direction of the electricity flow between the two countries to be changed.