MVP

Tag: interconnector

  • Energy waterloo — Odysseas Michaelides Labels Cyprus-Greece Interconnector Project an ‘Energy Waterloo’

    Energy waterloo — Odysseas Michaelides Labels Cyprus-Greece Interconnector Project an ‘Energy Waterloo’

    energy waterloo — The Cyprus-Greece interconnector project has been described as an ‘energy Waterloo’ by former Auditor General Odysseas Michaelides, who has raised serious concerns about the management and direction of the initiative.

    In a recent social media post, Michaelides referenced a report by Phileleftheros detailing ongoing pressure from the Greek Independent Power Transmission Operator (ADMIE) on the Cypriot regulatory authority (RAEK) to receive tens of millions in payments. He highlighted a troubling lack of decisiveness from President Christodoulides, suggesting that the government’s approach is complicating the project further.

    Energy waterloo: Concerns Over Government Decisions

    Michaelides specifically called out President Christodoulides and his main governmental partner, Nikolas Papadopoulos, for their persistent support of the project “at any cost.” He argued that this insistence is leading Cyprus into a precarious financial situation as costs continue to escalate.

    In August 2023, Michaelides informed both the European Commission and Cypriot Energy Minister G. Papanastasiou about issues surrounding the project’s Implementation Body, citing a troubling history of bankruptcy among its affiliates. He advocated for an open tender to find a more suitable entity to manage the project’s execution, but his warnings were disregarded.

    Financial Implications and Investigations

    Despite these red flags, the Christodoulides Government in October 2023 permitted the Implementation Body to sell the project’s “air” to ADMIE for a questionable sum of €48 million, a decision that is now under investigation by the European Public Prosecutor’s Office.

    The situation escalated in September 2024 when the Council of Ministers decided to commit Cyprus to a prepayment of €125 million to ADMIE, prior to the project’s completion. This prepayment has raised eyebrows, especially given the latest cost estimate of €1.9 billion, which Michaelides claims is no longer realistic.

    Calls for Accountability

    Michaelides’s concerns resonate with many who fear that the current trajectory of the project could lead to significant financial repercussions for Cyprus. He emphasised that the only oversight comes from the Minister of Finance, who has publicly documented the disconnection between the revised cost estimates and reality.

    As the project progresses, the community watches closely, questioning who will ultimately bear the financial burden. The ongoing developments surrounding the Cyprus-Greece interconnector project remain a point of contention, with implications that extend beyond mere financial figures to the broader energy strategy of Cyprus.

  • Interconnector — Keravnos Labels Greek Energy Minister’s Claims as ‘Fake News’ Regarding Interconnector

    Interconnector — Keravnos Labels Greek Energy Minister’s Claims as ‘Fake News’ Regarding Interconnector

    The debate surrounding the Great Sea Interconnector has intensified, with Finance Minister Makis Keravnos accusing Greek Energy Minister Stavros Papastavrou of spreading ‘fake news’. This accusation arose after Papastavrou claimed Keravnos had failed to present studies he cited, which purportedly indicate that the project is not sustainable.

    During a session of the House finance committee, Keravnos clarified that the studies in question were commissioned by Cypriot Energy Minister George Papanastasiou and were properly submitted to the Greek energy ministry. “We all know the studies and their findings,” he remarked, acknowledging that while some concerns are valid, he himself shares numerous reservations about the project’s viability.

    Keravnos expressed his commitment to maintaining harmonious relations between the Greek and Cypriot governments, although he expressed discontent with Papastavrou’s assertions. He noted that his predecessor, Constantinos Petrides, had received these studies from the energy ministry during his tenure.

    In a recent television appearance, Papastavrou dismissed what he termed ‘constantly conflicting messages from the Cypriot side’ regarding the interconnector. He cited Keravnos as questioning the project’s viability both before and after a meeting between Cypriot President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis in New York. Papastavrou stated, “The finance minister says that it should not be done and it is not sustainable, referring to two studies which he does not show to Cypriot Energy Minister George Papanastasiou.”

    Compounding the tension, Papastavrou addressed comments from President Christodoulides, who had taken issue with demands from Greece’s independent transmission system operator, Admie, for Cyprus to pay €25 million for the project. Papastavrou affirmed that Cyprus would not be ‘blackmailed’ over these payments, which are intended to support the project’s financing and ensure Admie’s income during the construction phase.

    The financial commitment from Cyprus involves five annual payments of €25 million, which the Cypriot government has withheld due to a perceived lack of progress on the project and disagreements over funding sources. Papanastasiou stated last month that the first instalment would only be released when the project is fully implemented, asserting that merely constructing cables is insufficient to meet this requirement.

    Initially, Cyprus planned to utilise funds from the European Union’s emissions trading system to cover these payments, alleviating the financial burden on taxpayers. However, Admie has raised concerns that this arrangement could potentially violate EU state aid regulations and has requested the Cyprus energy regulatory authority (Cera) to start charging consumers instead.

    In September, Greek Deputy Prime Minister Kostis Hatzidakis urged the Cypriot government to clarify its stance on the interconnector, following Keravnos’s public statements regarding the independent studies that concluded the project was unsustainable. Hatzidakis pointed out that the necessary seabed surveys to determine cable placement had not yet been completed, describing completion of these surveys as crucial for accurately estimating the project’s total cost.

    Contradicting this narrative, Greek Foreign Minister Giorgos Gerapetritis asserted that seabed surveys were ongoing and had proceeded according to schedule. This conflicting information has only added to the uncertainty surrounding the interconnector’s future.