EU: EuroAsia power link gets highest grant in €1B energy infrastructure investment

The European Union (EU) countries have agreed on a Commission proposal to invest €1.037 billion in five cross-border infrastructure projects, with the largest amount of funding allocated to the first electricity interconnection between Cyprus and the European grid.

Under the Connecting Europe Facility (CEF) for trans-European energy networks, the EuroAsia Interconnector project will receive €657 million.

According to the project promoter, the approval of the funding is the most important milestone which ensures the commencement of construction of the electricity interconnection of Cyprus and Greece (Crete) and consequently the subsequent completion of the EuroAsia Interconnector electricity corridor Israel-Cyprus-Greece-Europe.

The first phase of the 2,000MW interconnector is expected to be operational within 2025.

With 898 kilometres of subsea cables and a maximum sea depth of 3000 metres, the interconnector is expected to set new world records for a project of this kind.

The project has all the relevant permits and licensing secured, including binding offers from Siemens and high voltage cable manufacturers Nexans and Prysmian, and is proceeding with the start of construction works.

The CEF grant for the EuroAsia project comes in addition to the €100 million grant awarded in the Recovery and Resilience Facility instrument.

“Recent months have reminded us again how crucial a well-integrated EU energy market is for ensuring affordable energy and security of supply, as well as the clean energy transition“, said Kadri Simson, Commissioner for Energy.

“While we have made remarkable progress in the last decade with making our market better connected, more can and should be done. I want to particularly highlight the EuroAsia interconnector, that will bring an end to the energy isolation of Cyprus and link it to the rest of Europe.”

The European Commission pointed out that well-integrated energy infrastructure networks are necessary for the energy transition, as they facilitate the integration of renewable energy, enhance the security of supply and help keep energy prices in check.

Therefore, the allocation of CEF funds for the construction of three projects for electricity transmission and one for gas storage, as well as supporting a study on CO2 transport, is said to back the implementation of the European Green Deal.

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