On Wednesday, June 28, 2023, the administrations of the two companies reached an agreement for ADMIE’s strategic participation in the share capital of EuroAsia Interconnector, the Implementation Body of the Greece-Cyprus-Israel electrical interconnection.

The Operator’s entry, with a percentage of 25%, in the flagship project of the electrical interconnection of Cyprus and Israel in the European electrical system through Greece ensures the technical and financial adequacy of the project. It lays the foundations for its timely completion by 2027.

From 2021, ADMIE is already assisting the project as a technical consultant, having contributed decisively to its design maturation and financial support from the European mechanism Connecting Europe Facility (CEF), with 657 million euros.

ADMIE’s entry into the share capital of EuroAsia Interconnector satisfies the requirement of the Directorate General for Energy of the European Union (DG ENER) for the shareholding of a Transmission System Operator (TSO) as a guarantor for the electrical security of the three Eastern Mediterranean states.

The Manager’s equity participation, which will be completed after the due diligence process in the near future, is expected to be an acceleration factor for the signing of the contracts with the contractors who have been selected after a competitive process for the submarine cables and the conversion stations in Crete and Cyprus.

The completion of the project will mark the electrical interconnection of Cyprus – the last non-interconnected EU member state – with the European transmission system, ensuring the island’s strong energy shield. And Israel, which also does not have any electrical interconnection with its neighbours, will strengthen its security of supply, increasing the participation of Renewable Energy Sources (RES) in its energy balance.

The Minister of Energy, Trade and Industry of Cyprus, Giorgos Papanastasiou, noted: “This development marks the successful completion of a milestone towards the implementation of the strategic project of the Greece-Cyprus-Israel electrical interconnection, which further strengthens the cooperation of the three countries in the energy sector and remove the ongoing energy isolation of Cyprus. This interconnection is a key element for the achievement of our country’s wider energy planning to reduce the cost of electricity for the benefit of the Cypriot economy and for a rapid transition to green energy. I would like to thank the Greek Government for its support and, of course, the European Commission for the funding.”

The Minister of Environment and Energy of Greece, Theodoros Skylakakis, stated in this regard: “The agreement for the participation of ADMIE in the share capital and the Board of Directors of the EuroAsia project, which is expected to be completed in the coming months, is a very positive milestone for the deepening of the strategic cooperation relations between Greece-Cyprus-Israel. Greece has been a reliable and systematic supporter of the efforts of the Republic of Cyprus in terms of strengthening the maturity of its electrical interconnection with the European energy market. This happened from the first inclusion of EuroAsia in the list of Projects of Common Interest (PCI) in 2013 until the strengthening of the project in 2021 with 657 million euros from the Connecting Europe Facility (CEF). We are, in particular, satisfied with the successful conclusion of the negotiations and remain ready to contribute further to the implementation process of the project”.

The Deputy Minister of Environment and Energy of Greece, Alexandra Sdoukou, pointed out: “I welcome the achievement of a very important agreement, which unlocks the implementation of a project of strategic importance for the South-East Mediterranean, but also for the entire EU. The implementation of the electrical interconnection will remove the energy isolation of the Republic of Cyprus, facilitating the achievement of the ambitious goals of its energy transition. At the same time, the project will connect Israel to Europe’s single energy market, providing it with increased security of supply, while it will further highlight our country’s role as a critical energy transit hub between Europe and the Middle East.”

ADMIE President and CEO Manos Manousakis said: “Today’s agreement is the fruit of many months of negotiations and is part of ADMIE’s strategy to make Greece an energy hub in SE Europe. For our part, we did everything in our power to secure an agreement that would safeguard the Greek energy system and our shareholders. I want to thank from the bottom of my heart the executives of the Greek and Cypriot governments, as well as the people of DG ENER, for their decisive contribution to the achievement of this historic agreement”.

The Managing Director of EuroAsia Interconnector, Nassos Ktoridis, underlined: “We are particularly happy that the Independent Transmission System Operator of Greece ADMIE is participating with us in the EuroAsia Interconnector electrical interconnection project, the implementation of which ends the energy isolation of Cyprus and contributes substantially to the achievement of the of its energy goals. I would like to warmly thank the Governments of Cyprus and Greece and the General Directorate of Energy of the European Commission DG ENER, for the continuous and valuable support in reaching this important agreement and to assure the intensification of the efforts we are making to complete this strategic project for the European Union and, especially, for our country”.

Source: https://meci.gov.cy/
Image source: EuroAsia Interconnector

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