Great Sea Interconnector expected to reduce electricity costs for Cyprus

A new study presented by Professor Pantelis Biskas at the Institute of Energy for South-East Europe (IENE) conference indicates that the Great Sea Interconnector (GSI) could yield significant economic benefits for consumers in Cyprus and Greece. The research, which simulates energy system operations for 2035, suggests an annual savings range between 122.7 million and 138.1 million euros depending on the cable's transmission capacity. The project explores three scenarios with capacities of 500, 750, and 1,000 megawatts (MW).

Cyprus stands to gain the largest portion of these benefits, potentially seeing its average electricity procurement cost drop by approximately 18%, or 21.3 euros per megawatt-hour (MWh), under the 500 MW scenario. While this would bring the cost down from 120.49 to 99.14 euros per MWh, experts noted that these financial advantages for Cyprus could be reduced if the country manages to secure cheaper natural gas for domestic power generation. Conversely, the impact on the Greek electricity market is projected to be marginal, with fluctuations in costs ranging from a 0.2% decrease to a 0.1% increase. The interconnector is expected to drive a convergence of wholesale electricity prices between the two nations, facilitating more efficient utilization of renewable energy sources.