Cyprus Approves $2.1B Undersea Cable to Greece

Cyprus has approved a 1.9 billion euro ($2.1 billion) undersea electricity cable to Greece. Energy Minister George Papanastasiou on Tuesday announced the project, which is aimed at cutting electricity costs and ending energy isolation. The European Union will fund 657 million euros ($735 million) of the project.

Cyprus will allocate 25 million euros ($27.8 million) annually over five years for the cable's construction. Electricity bills will not increase over that time; rather, revenue from the EU's emission trading system will provide this funding. The cable, expected to be completed by 2029, is a key part of initiatives to introduce natural gas, drive economic development, and improve citizens' welfare.

Once completed, electricity bills could drop up to 40%, per officials. Operating costs will be shared between Cypriot and Greek consumers. The project also promises an 8.3% return on investment, drawing interest from the US and the UAE. Future plans envision extending the cable to Israel's electricity grid. (This story was generated by Newser's AI chatbot. Source: the AP)