The Minister of Energy, Trade and Industry, Mr. Giorgos Papanastasiou, announced at the Presidential Palace that the Council of Ministers had approved the Cyprus-Crete electrical interconnection project. This initiative aims to eliminate Cyprus’s energy isolation by linking its National Electricity Transmission System with trans-European systems, thereby enhancing the country’s energy security.
The project is expected to support economic development and improve the well-being of Cypriots by reducing electricity costs through increased access to natural gas and renewable energy sources. The significance of the project has been underscored by the European Commission’s approval of a record €657 million in funding from the “Connecting Europe Facility.”
To further assist consumers during the construction phase, which is set to run from January 1, 2025, to December 31, 2029, the Council of Ministers has allocated €25 million annually as a subsidy to offset potential increases in electricity bills. This funding will come from the Republic’s Fixed Fund, specifically through proceeds from the auction of polluter rights.
Minister Papanastasiou emphasized that today’s decision is the result of extensive consultations with all stakeholders to ensure the project’s financial, technical, and legal viability. He affirmed the government’s commitment to acting responsibly in decisions of this magnitude, with the interests of the Cypriot people as the priority.
Looking ahead, the government plans to maintain close communication with both Greece and the European Commission to ensure the project’s successful implementation, as well as engage with interested parties for further collaboration.
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