Greece and Cyprus have signed a Memorandum of Understanding (MoU) regarding the location of a submarine electricity transmission cable that will connect Europe to the Middle East via the Mediterranean Sea, the energy ministers of the two countries informed, Reuters reports.

The so-called Great Sea Interconnector (GSI) aims to connect the electricity transmission networks of Greece, via Crete, with those of Cyprus and eventually Israel, a project whose costs are estimated at 2.4 billion euros. As far as Cyprus, the cost of the submarine cable is estimated at 1.9 billion euros. When completed, it will be the longest direct current (HVDC) submarine cable in the world, at 1,240 kilometers, and the deepest, at 3,000 meters. The European Union has announced that it is willing to finance part of the costs of the project, which is scheduled to be completed around 2030, according to Agerpres.

Based on the Memorandum of Understanding, the activity on the submarine cable project will resume in the following days, the Energy Ministers informed.

Cyprus has proven gas reserves, but they have not been exploited. The island is still dependent on fuel oil for electricity generation, with consumer costs being significantly higher than in other mainland European states.

“This is a project of strategic importance for Cyprus, Greece and the EU, as it will connect Cyprus to Europe’s electricity grid, facilitating its energy transition and supporting Greece’s goal of pioneering clean energy,” the two officials said.

However, this ambitious project is affected by the fact that it passes through an area of ​​the Mediterranean Sea that is disputed between Greece, Cyprus and Turkey, an aspect that could reappear in the future.

Cyprus wants to get clarification on what its costs are in the project, and what will happen if “geopolitical risks”, meaning potential opposition from Turkey, will manifest themselves, creating delays and possible additional costs.