The Council of Ministers of Cyprus gave the green light to the proposal submitted by the Ministry of Energy for changes to the regulatory framework governing the Cyprus-Crete electricity interconnection.

It is noted that the Cypriot presidency has announced that statements are expected at 6 p.m. by the Minister of Energy, Giorgos Papanastasiou, at the Presidential Palace.

However, Phileleftheros reported that the Cyprus Energy Regulatory Authority (CERA) revised two regulatory decisions, and the decision regarding geopolitical risk is pending. The proposal suggests splitting the risk 50-50 between Greece and Cyprus.

According to Kathimerini Cyprus, the Council of Ministers appears to have approved the agreement reached at the ministerial level regarding the 50-50 geopolitical risk sharing between Cyprus and Greece, as well as the recovery of project costs through €25 million over five years from the Emissions Fund. It remains unclear if Cyprus’ participation in the cable’s equity structure is also included in the decision.

The agreement reached between Athens and Nicosia to advance the Greece-Cyprus cable during the meeting on Tuesday, September 10, includes three key points.

The Council of Ministers of the Christodoulides government is expected to make a decision tomorrow, and the President of the Republic of Cyprus will announce the positive decision to the Greek Prime Minister Kyriakos Mitsotakis during his visit to Athens on Thursday, September 19.

The three points of the agreement are:

Greece to increase its share of geopolitical guarantees for the implementation of the Greece-Cyprus cable project. According to reports, the ratio between the two countries for providing geopolitical guarantees for the project’s security will be 50-50, with Greece increasing its relative contribution.

ADMIE to recover revenues of €125 million instead of €200 million during the construction period. The Cypriot side supports that this cost will be covered from emissions revenue, while the remaining revenue that ADMIE is entitled to will be capitalized and recovered once the interconnection is operational.

The Republic of Cyprus to become a shareholder in the Great Sea Interconnector project. Currently, ADMIE is the sole shareholder responsible for implementing the Greece-Cyprus cable project (Great Sea Interconnector). Under the agreement, Nicosia will enter the equity structure with €100 million.