NICOSIA, Cyprus (AP) — Cyprus’s energy minister on Friday hailed the entry of French investment company Meridiam as a backer to the Great Seas Interconnector project, an electricity cable that will connect Europe’s power grid with that of Cyprus and eventually Israel.

The ambitious project would not only end Cyprus and Israel’s energy isolation, but would be an important building block for a new energy and trade route to the Gulf and India that the European Union is pursuing.

But the project is now tied up in red tape over its real cost above an earlier estimate of $2.2 billion. A European Investment Bank report that’s due in the next few months will offer clarity over its cost.

That’s important for Cyprus because under an existing agreement, Cypriot energy consumers would have to put up as much as 63% of the cable’s construction cost, meaning a significant jump in electricity prices.

Additional private investment is being courted to offset that burden on Cypriot consumers while additional EU funding is being weighed, said Damianos.

The European Union has already committed $760 million (658 million euros) for the project.

“It’s a very important project for Europe because it connects Cyprus which is isolated to the European grid. And the idea is to then proceed and connect to Israel,” Cypriot Energy Minister Michael Damianos said in an interview.

Damianos also said that European consumers can expect natural gas from an undersea deposit off Cyprus to help meet their energy needs as early as March 2028.

Damianos explained that the East Mediterranean is fast becoming an alternative energy source for European nations as Russia’s war in Ukraine and upheaval in the Middle East compel the continent to seek........

© The Times of Israel