Europe’s initiative to mobilize Europe to de-escalate energy prices is being undertaken by Greece, Romania and Bulgaria, Greece, The Minister of Environment and Energy, Thodoros Skylakakis, announced today while speaking to a radio station.

Specifically, in response to a question regarding the cost of energy for the consumer, he noted that in the first phase the government is monitoring developments in the market. At the same time, a joint initiative is being taken by the energy ministers of Greece, Bulgaria and Romania, with the aim of creating a permanent intervention mechanism whenever extreme prices are recorded, due to the disconnection of South-Eastern Europe from the rest of the European energy market.

“The following paradox is happening: There are not enough interconnections to transfer electricity from the Central European market to the South-East. This results in extreme prices on some days, which cannot be accepted in our opinion and the operation of the so-called target model is problematic – in this special case – and the so-called target model”Skylakakis stressed in the station of Parapolitika.

As the minister explained, “while the problem is that an ‘energy island’ is being created in the region – that is, there are not enough interconnections, the ‘signal’ of the market is that producers are getting more money. It makes no sense to give money to producers when they need interconnection investments (cables) that should be made by the grid operators. Let alone when the managers take the investment money from the consumers themselves. This is a fundamental argument. And we have a good justification for pursuing a permanent solution, a proper tool, to these endemic phenomena. Regardless of this initiative, the government will step in whenever necessary, and we have demonstrated that, repeatedly, in the past.”.

It is noted that Mr. Skylakakis also discussed the issue with Germany’s Federal Minister for Economic Affairs and Climate Action, Dr. Robert Habeck, on the sidelines of the 88th TIF.

Referring to the fight against water scarcity, the minister said that on Wednesday (11/9) the set of measures taken by the government for this purpose will be presented. He pointed out that there are areas that are under immediate pressure, such as the Aegean islands and especially the Cyclades, areas of the Eastern Peloponnese, Crete, etc., but also areas such as Attica, for which the long-term plan will be presented in order to avoid the threat of water scarcity. The plan, as the Minister said, includes the implementation of the necessary actions with great speed.

In relation to the Crete-Cyprus cable, Great Sea Interconnector, Mr.Skylakakis noted that in the opinion of the Greek government, it does not face any issue of economic feasibility, in terms of the benefits it provides, especially to Cypriot consumers.

As he explained, based on the data of the study and model of ADMIE and the publicly available data on the operation of the two markets, the price differences between Greece and Cyprus are so large (the Cypriot market is 72 euros more expensive than the Greek market in 2024) that in all possible realistic scenarios the cable has significant gains from the point of view of Cypriot consumers.

The problem is that there is no economic viability of the project from a regulatory perspective (i.e., that the developer, ADMIE, which is 51% owned by Greece, can do the project without incurring a loss, which is not legally allowed).

Economic viability has not been achieved even though it is an obligation of the regulators under the relevant European regulations, especially after the RAEK decision last July and despite the fact that the relevant contractual deadlines with the cable manufacturer have passed.