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Greece and Cyprus Sign MoU for Subsea Electric Cable Project

Greece and Cyprus Sign MoU for Subsea Electric Cable Project

Greece and Cyprus have officially signed a memorandum of understanding (MoU) to advance the Great Sea Interconnector (GSI), a groundbreaking subsea electric cable project aimed at linking continental Europe with the East Mediterranean. The announcement was made by the energy ministries of both countries on Saturday.

The GSI cable, projected to cost approximately €1.9 billion ($2.12 billion), will connect Europe's transmission networks to Cyprus and is planned to eventually extend to Israel. Once completed, it is expected to be the longest high-voltage subsea cable in the world, spanning 1,240 kilometers (770.5 miles) and reaching depths of 3,000 meters.

Following the signing of the MoU, both ministries indicated that work on the project will resume in the coming days. Despite having proven gas reserves, Cyprus currently relies on heavy fuel oil for electricity generation, resulting in higher costs for consumers compared to those in continental Europe.

While the need for alternative energy sources and the GSI project is widely recognized, there have been delays on the Cypriot side as Nicosia sought clarity on the total project cost, its overall viability, and potential liabilities for any unforeseen delays.

"This is a project of strategic importance for Cyprus, Greece, and the EU," the ministries stated, highlighting its role in linking Cyprus to the European electricity network and facilitating both Cyprus's energy transition and Greece's ambition to serve as a conduit for clean energy.