NICOSIA, Cyprus (AP) — Cyprus has given the green light for construction of a 1.9 billion euro ($2.1 billion) undersea electricity cable linking its grid with Greece's, aiming to sharply reduce electricity bills and end its energy isolation, the country's energy minister said Tuesday.

Minister George Papanastasiou said the significance of the project is underscored by the European Union’s decision to fund it with the sum of 657 million euros ($735 million).

He said the Cypriot government will contribute 25 million euro ($27.8 million) annually over the five-year period of the 1,000 MW cable’s construction so that Cypriot taxpayers won’t see any hike to their electricity bills.

The total 125 million euro sum will be raised from revenues generated from the EU's emission trading system.

Papanastasiou said the cable, expected to be completed by the end of 2029, is part of a series of projects including the planned introduction of natural gas to the island nation's energy mix, that aims to “further accelerate the country's medium-term economic development and the welfare of its citizens."

Officials said Cypriot consumers stand to gain a drop in their electricity bills of as much as 40% once the cable is completed. The cable's operating costs will be split down the middle by both Cypriot and Greek consumers.

Officials also said that the project will carry a guaranteed return on investment of 8.3%, considered attractive for potential investors. The U.S. and the United Arab Emirates have expressed interest in investing in the project, officials said.

It's envisioned that the cable will eventually continue from Cyprus to connect with Israel's electricity grid.