Philenews

What's the Deal with the GSI?

Published December 30, 2025, 11:17
What's the Deal with the GSI?

There is discussion regarding the benefits of the electrical interconnection (GSI) for Cyprus. While many consider it a salvation, the reality is more complex. The creation of the GSI does not guarantee significant reductions in electricity bills, as there are other variables to consider. The value of such a project depends on what it is compared to. Compared to current electricity prices, the electrical interconnection may offer small reductions, perhaps a few cents. However, if compared to the cost of electricity that Cyprus could produce using natural gas, the difference may be negligible. Furthermore, a project costing over 2 billion euros should be considered in relation to other potential investments, such as energy storage batteries. The author warns against repeating the mistakes of the past with photovoltaics, where excessive expectations were created for covering electricity needs without cost. The GSI is not a cure-all, but an additional option that can be integrated into a broader energy plan.