Stages 1 and 2 to cost EUR 3.5 bln, fully funded by EuroAsia Interconnector
The biggest investment in Cyprus is finally taking shape as the final and comprehensive investment dossier has been submitted in Nicosia for the first electricity interconnection license that will provide a secure and stable supply of energy between Israel, Cyprus and Greece.
The project, promoted by the EuroAsia Interconnector in cooperation with the national utilities of the three countries, will also end the energy isolation of these ‘island’ states, that although are part of the regional and global economies, have remained detached from continental electricity grids.
The cost, estimated at EUR 3.5 bln, will be fully funded by the project promoter, while the economic benefits to all three countries will be threefold of that amount, with great opportunities for friendship and prosperity.
Nasos Ktorides, Chairman and Chief Executive Officer of the EuroAsia Interconnector, submitted the document to Dr. Andreas Poulikkas, Chairman of the Cyprus Energy Regulatory Authority, pursuant to Article 10 of the European Regulation and the Licensing Manuals issued by Cyprus, Greece and Israel. A similar ceremony for the submission of documents took place at the Israel Public Utility Authority for Electricity on July 25 and the Greek Energy Regulator (RAE) on July 22.
“Following the last trilateral meeting of the leaders of Israel, Cyprus and Greece on January 28, 2016, in Nicosia, where they declared their support, and considering the importance of the EuroAsia Interconnector for Cyprus, Israel and Greece as well as the European Union, we have concentrated our efforts on the timely implementation of the project, the construction of which will commence in 2017,” Ktorides said.
This is a unique project that will provide a reliable alternative corridor for transferring electricity to Europe and will secure energy supply by linking the electrical systems of Israel, Cyprus and Greece (via Crete and Attica), the project promoter said.
The interconnector will be achieved through 500kV submarine DC cables and HVDC onshore stations in each country, with an initial capacity of 1,000 MW. When fully operational, all three legs will have a combined length of 1518km.
The project has been selected as a European Union Project of Common Interest (PCI) and is part of the EU’s energy policy, receiving a positive evaluation due to its contribution to the energy targets. These aim at ending the energy isolation of the three partner countries, providing security in stable supply of electricity generated from clean fuels (natural gas) and other renewable energy sources (RES), will help reduce CO2 emissions, offers significant economic and labour benefits, and contributes to the EU target of 10% of electricity interconnection between member states.
The Technical and Environmental Studies recently carried out by CESI S.p.A. of Italy, as well as the Reconnaissance Survey executed by GAS S.r.l., also an Italian organisation, have concluded that the electricity networks interconnection between Israel, Cyprus, Crete and Attica is technically feasible; that all four surveyed locations have been considered technically and environmentally suitable; that the submarine cables can be manufactured with a higher voltage level up to 500 kV and with improved technical characteristics which allow for the cables to be laid at depths of up to 3,000 metres; and, based on the route survey performed by the Italian flag R/V Odin Finder, a feasible corridor has been designed that allows the 1,000 MW cable to be laid at depths of up to 3,000 metres.
Moreover, the cost/benefit analysis (CBA) studies, which are being executed by CESI based on ENTSO-E methodology, have been completed pursuant to the requirements of the relevant EU Regulation.
EuroAsia Interconnector Ltd., as the official project promoter, will finance the construction of the electricity interconnection between Israel, Cyprus, Crete and Attica with initial transmission capacity of 1,000 MW, with the financial cost of Stages 1 and 2 estimated at EUR 3.5 bln.
The implementation dates – as provided to the European Commission – for the commencement of Stage 1 of the electricity interconnection between Israel, Cyprus, Crete and Attica with total transmission capacity of 1,000 MW are:
- 2017 for Cyprus – Israel and commissioning in 2019 (329km),
- 2017 for Crete – Attica and commissioning in 2020 (310km),
- 2018 for Cyprus – Crete and commissioning in 2022 (879km).
It is estimated that the EuroAsia Interconnector will provide the partner countries with significant socio-economic benefits worth EUR 10 bln which will derive from the decrease of electricity cost by using more efficient methods in power generation (i.e. natural gas, renewable energy sources) rather than the energy consuming and polluting fuels, national caps for carbon dioxide (CO2) emissions will be reduced and the cost for replacing the old power plants will be avoided.
“What is important is that the implementation of the EuroAsia Interconnector will ensure the electricity interconnection between Crete and Attica at no cost to the Greek Government and will create the electricity ‘highway’ that will connect the Eastern Mediterranean with the European Union. Greece will become a major energy hub in the region enhancing further the country’s geopolitical importance in regard to the EU energy security,” concluded Ktorides.
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