A prospective electrical grid interconnection planned to link Greece, Cyprus and Israel is making progress but delays seem inevitable, it has been determined following talks in Cyprus between Greek and Cypriot officials.

Greek power grid operator IPTO’s chairman and CEO Manos Manousakis and his deputy Giannis Margaris have just held constructive talks with Cypriot officials on the project.

The IPTO officials informed officials of the Cypriot government and the country’s transmission system operator that they have already commissioned a new cost-benefit study, a prerequisite for the Cypriot government ahead of its decision on whether to participate in this project.

Also, IPTO has forwarded, to the Greek and Cypriot regulatory authorities, an agreement it has signed with Cypriot company Euroasia, the project’s previous promoter, to succeed it at the project’s helm, according to sources at the Greek power grid operator.

This action paves the way for IPTO to be officially declared project promoter of the grid interconnection. However, the Greek and Cypriot regulatory authorities still need to recognize this transfer of project control from Euroasia to IPTO.

Meanwhile, IPTO has already formed a special purpose vehicle (SPV) named Great Sea Interconnector as a subsidiary to be assigned rights and responsibilities concerning the project’s development.

IPTO has repeatedly made note of the need for swifter action, both by the Cypriot government in its decision on whether to participate in the project, and by the regulators for their recognition of the project’s transfer of control. The European Commission has also demanded swifter progress from all parties involved – regulators, operators and governments.

Crucially, Israel has warmed to the prospect of co-developing the project’s second segment that would link the Cypriot and Israeli electrical grids and complete the interconnection, maximizing the benefits to be derived from it.