Cyprus and Greece sign an agreement on the 'world's largest' subsea cable

The energy ministers of Greece and Cyprus announced on Saturday that they had signed a Memorandum of Understanding (MoU), which will allow them to proceed with the construction of a submarine electric cable connecting continental Europe to East Mediterranean.

The Great Sea Interconnector cable (GSI) will connect transmission networks in Europe with Cyprus, a project that costs 1.9 billion euro ($2.12 billion), later extending to Israel.

The project's promoters claim that it will be the "world's longest" high-voltage cable when completed, at 1,240 km (775.9 miles), and also deepest with a depth of 3,000 meters.

The two ministries announced on Saturday that the project would resume work based on the MoU they signed on Friday evening.

Cyprus has gas reserves that have been proven, but they are not being tapped. Cyprus still uses heavy fuel oil for electricity generation, which is more expensive than continental Europe.

Nicosia, while not disputing the necessity of alternative energy sources or the GSI, had held up the process as it sought clarifications about the cost, viability, and liability for unforeseen delays. The ministries stated that the project is of strategic importance to Cyprus, Greece, and the EU, as it will connect Cyprus to the European electricity grid, facilitating the energy transition of Cyprus and Greece's goal to become a conduit for clean energy. The exchange rate is $1 = 0.8959 euro. (Written by Michele Kambas, edited by Andrew Cawthorne).

(source: Reuters)