Progress on the Great Sea Interconnector energy project

The Great Sea Interconnector (GSI) project, which aims to connect the electricity grids of Greece, Cyprus, and Israel, has reached a new milestone as the Greek power grid operator ADMIE submitted an investment request for the Cyprus-Israel link to regulators in both countries. This submission includes a comprehensive cost-benefit analysis and a cross-border cost allocation proposal. The project, with an estimated budget of €1.9 billion, is supported by the European Union, which has approved €657 million in funding. The French company Meridiam has agreed to become a majority investor in the Greece-Cyprus segment by acquiring 66% of the project company, while the French firm Nexans is currently manufacturing the submarine cable.

International political support for the initiative has intensified, with six U.S. Congress members urging the government to prioritize the electrical link to enhance regional energy security. The U.S. Department of State confirmed its support for energy cooperation in the Eastern Mediterranean, though it clarified that this does not constitute a construction guarantee. While international and technical progress continues, authorities in Nicosia are currently evaluating the economic implications to protect local consumers, amid concerns regarding potential long-term financial liabilities.

Following the regulatory decision on cost allocation, the next critical phases for the project will be the Final Investment Decision (FID) and the subsequent construction rollout.