Energy minister supports separate body to oversee electricity connection

Energy Minister George Papanastasiou has proposed the creation of a state body that can participate in the energy connection between Cyprus and Greece so as to avoid mistakes of the past, he said on Thursday.

Speaking to CNA, Papanastasiou specified he had put forth his proposal to the Electricity Authority (EAC).

It entails creating a separate company that will invest in the GSI company (Great Sea Interconnector).

This is the company setup by Greece’s independent power transmission system operator Admie, that will promote and fund the project, should the government make the final decision to invest €100 million.

“The government believes that such a project, when it is decided on after the due diligence studies and until the project is operational, needs an organisation that knows the subject and has expertise so as not to repeat the mistakes of the past.”

EAC chairman George Petrou said the board would be convening at 3:30pm to assess the proposal.

“We will not be taking a decision but the proposal must be studied and we will explore whether there are other solutions.”

He specified the matter would be discussed with the EAC’s legal advisors.

EAC unions and management would be notified before any decision is taken, Petrou said.

CNA reported Papanastasiou’s proposal aims to give the EAC board the option to take decisions on the issue, while the alternative is the Cyprus Hydrocarbons Company, which is a state-owned company under private law and could take on this role with a simple change in its statutes.

It is believed that with such a company, utilising also the staff of EAC, which has expertise, the project could be separated and the development of a smart grid could be promoted, which is also required for the further exploitation of the penetration of renewable energy sources in the market.

The EU’s third energy package introduced rules providing for the separation of supply and generation from transmission networks.