EuroAsia EU status

Agency for the Cooperation of Energy Regulators

The Recommendation of the Agency for the Cooperation of Energy Regulators No. 05/2015 of 18 December 2015 on good practices for the treatment of the investment requests, including cross-border cost allocation requests, for electricity and gas projects of common interest:

Decision No. 216/2017 – Decision for Cross-Border Cost Allocation of Project of Common Interest (PCI)
No. 3.10.2 Interconnection between Kofinou (CY) and Korakia, Crete (EL)

The Members of the Cyprus Energy Regulatory Authority (CERA) meeting in reference to the above subject and having regard the following:

• The second list of Projects of Common Interest (PCIs) of the European Union (Union-wide list 2015) which includes:
- No. 3.10.2 Interconnection between Kofinou (CY) and Korakia, Crete (EL)
with the Project Promoter being the company Euroasia Interconnector Ltd.

• The provision of Regulation (EU) No. 347/2013 of the European Parliament and the Council of 17 April 2013 in relation to the guidelines for trans-European energy infrastructure, repealing Decision No. 1364/2006/EC and amending Regulations (EC) No. 713/2009, (EC) No. 714/2009 and (EC) No. 715/2009;

• The Recommendation of the Agency for the Cooperation of Energy Regulators No. 05/2015 of 18 December 2015 on good practices for the treatment of the investment requests, including cross-border cost allocation requests, for electricity and gas projects of common interest;

• The European Commission approved Guideline for Cost Benefit Analysis of ENTSO-E Grid Development Projects of 5 February 2015;

• The complete Investment Request that was submitted by the Project Promoter of the EuroAsia Interconnector PCI on 5 September 2017 and all the relevant communication that followed;

• The consultations with the Hellenic Regulatory Authority for Energy (RAE) and the agreement reached between the two national regulatory authorities for the cross-border allocation of the investment cost;

DECIDE

To adopt the agreement between the two national regulatory authorities “Cross-Border Cost Allocation Agreement between the Cyprus Energy Regulatory Authority (CERA) and the Regulatory Authority for Energy of Greece (RAE)” of 10 October 2017 and to circulate immediately the relevant decision to the Project Promoter of the project.

Specifically, the following are adopted and decided:

• the projects of Common Interest No. 3.10.2 “Interconnection between Kofinou (CY) and Korakia, Crete (EL)” ...................................have reached sufficient maturity for the purpose of decision by the national regulatory authorities;

• the cost allocation between the two Member States is reasonable and documented and there is a net positive impact from the project on the involved parties;

• (Cyprus-Crete) of the project No. 3.10.2 “Interconnection between Kofinou (CY) and Korakia, Crete (EL)” the Republic of Cyprus will be allocated 63% of the implementation cost of the project and the Hellenic Republic the 37%, assuming that 50% of the cost of the project will be undertaken by third parties.

In accordance with the definitions in paragraph 5 of article 12 of Regulation (EU) No. 347/2013, this decision will be circulated to the Agency for the Cooperation of Energy Regulators (ACER) together with all the relevant information. In addition, this decision together with all the relevant information will also be circulated to the Project Promoter of the project.

In accordance with the definitions in paragraph 5 of article 12 of Regulation (EU) No. 347/2013, the decision will be published in the Official Gazette of the Republic of Cyprus and on the CERA website.