Regulatory framework for the GSI electricity interconnector project

The Great Sea Interconnector (GSI) project is recognized as a Project of Common Interest (PCI) within the European Union. Public discussion regarding the project often centers on high costs and potential consumer electricity bill surcharges. According to the EU regulatory framework, the project's financial structure is complex and governed by specific mechanisms to ensure cost recovery. Costs are first offset by available European grants and subsidies to establish a net investment amount. The remaining costs are then recovered in two stages according to Regulation (EU) 2019/943. First, market revenues from cross-border congestion rents are applied. Only if these market revenues are insufficient is the cross-border cost allocation (CBCA) mechanism triggered. This process is designed to ensure that costs are shared between participating countries based on identified benefits and operational performance.