Great Sea Interconnector: IPTO submits investment approval request to Cyprus and Israeli regulators

The acceleration of the Cyprus-Israel electricity interconnection is signalled by the investment request submitted by the Independent Power Transmission Operator (IPTO), as the project promoter of the Great Sea Interconnector (GSI), to the regulatory authorities of the two countries, in accordance with the provisions of the European framework (TEN-E Regulation).

As IPTO notes:
This latest development is part of the Greek government’s consistent strategy to promote the Great Sea Interconnector as a project of particular geopolitical and energy significance for Greece, Cyprus, Israel and Europe.

It comes just one week after the agreement between IPTO and Meridiam was signed at the Maximos Mansion, paving the way for the French investment group to become the majority shareholder in the Great Sea Interconnector company, and follows the telephone conversation between Minister of Environment and Energy Stavros Papastavrou and his Israeli counterpart, Eli Cohen, on promoting the Cyprus-Israel electricity interconnection. These successive developments are creating new and strong momentum for the implementation of the overall project.

The investment request for the Cyprus-Israel interconnection constitutes the necessary next step, under the European framework, for the implementation of the project, following the completion of the required cost-benefit analyses (CBA) and the proposal for cross-border cost allocation (CBCA).

During the preparation of the studies, an extensive consultation and data-exchange process was carried out with the competent authorities of the two countries, including the Energy Ministries, the Cyprus Transmission System Operator (TSOC) and Israel’s system operator, NOGA. The aim was to take into account the latest assumptions regarding developments in the electricity systems, electricity demand, renewable energy penetration and the infrastructure required.

The results of the studies confirm the project’s economic viability in all the scenarios analysed. In particular, the project was found to make a significant contribution to security of supply, the penetration of renewable energy sources and the further integration of Eastern Mediterranean electricity markets with the European electricity transmission system.

The submission of the investment request is a prerequisite for the competent regulatory authorities of Cyprus and Israel to launch the assessment process, with a view to reaching a joint decision on the allocation of costs between the two countries, which will be recovered through the project’s regulated revenues.

Since assuming the role of Project Promoter for the entire project, IPTO has been working closely with the competent authorities, transmission system operators and other stakeholders in the countries involved in the interconnection, with the aim of advancing the necessary technical, regulatory and financing procedures.

Once the countries reach an agreement, the final investment decision (FID) will follow, marking the start of the procedures for financing the project. IPTO’s aim is to attract additional investors for the Cyprus-Israel interconnection as well, as happened with the first section of the project, the Greece-Cyprus interconnection, following Meridiam’s entry into the investment consortium.

The GSI, which is an EU Project of Common Interest (PCI), will have a nominal transmission capacity of 1,000 MW and will comprise a 500 kV bipolar high-voltage direct current (HVDC) system. According to the design, the cable system on the Cyprus side will connect to the converter station to be developed at Kofinou, while on the Israeli side, the corresponding converter station will be constructed in the Hadera area.

The Cyprus-Israel electricity interconnection section will have an offshore length of approximately 324 km, with the laying depth ranging between 2,200 and 2,400 metres. The interconnection will enable the two-way transmission of electricity, allowing the direction of power flow to be reversed.

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