European Commission President Ursula von der Leyen announces the EC positive assessment of the Cyprus RRP at the University of Cyprus in Nicosia on July 8

€100 mln grant for EuroAsia ends Cyprus energy isolation

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The Council of the European Union approved the allocation of a €100 mln grant to the EuroAsia Interconnector electricity interconnection as part of the Recovery and Resilience Plan (RRP) for Cyprus to end its energy isolation.

Submitting the national RRP with a cost of €1.206 bln to the European Commission, Nicosia said the EuroAsia Interconnector ends the energy isolation of Cyprus, the last non-interconnected EU member state.

It said the 1,208 km cross-border interconnector between Greece (Crete), Cyprus and Israel “ensures security of supply, more competitive wholesale electricity prices and enables the increased use of electricity from cleaner sources, in particular renewables, by connecting the electricity network of Cyprus to the European continental system.”

The European Commission adopted a positive assessment of Cyprus’ RRP as part of the ‘NextGenerationEU’ initiative, announced by Commission President Ursula von der Leyen during her two-visit on July 8.

The plan devotes 41% of the total allocation to measures that support climate objectives.

The EuroAsia Interconnector will aid electricity generation from cleaner sources, in particular renewable sources of energy.

Commenting on the energy plans, von der Leyen said: “The overall Cypriot plan is very well balanced in reforms and investments, addressing the key structural challenges Cyprus is facing.

“The plan will help to connect Cyprus to the European continental network. The Minister of Energy described that also to me in detail. And thus, it will contribute to the country’s energy integration.”

The EuroAsia Interconnector European project of common interest (PCI3.10) ensures energy security for the EU by providing 2,000MW of electricity generated from clean resources – solar and renewable sources of energy.

The project developer has secured all the relevant permits and licensing, with binding offers from the world’s leading manufacturers in the energy field – Siemens and high voltage cable manufacturers Nexans and Prysmian – and is proceeding with construction works.

Earlier in July, EuroAsia Interconnector placed at the top of the list of priority projects included in the Commission’s impact assessment report, reviewing the proposal for European green bonds that will fund clean energy efforts over the next 30 years.

This initiative is part of the European Commission’s 2021 Work Programme.

It is one of the actions proposed by Brussels to implement the European ‘Green Deal’ to reach climate goals and inject funds into local economies as part of the Covid-19 Recovery and Resilience Fund.