Great Sea Interconnector project faces rising cost projections and leadership transition

The Great Sea Interconnector (GSI) project, an electricity link connecting Cyprus with Greece and potentially Israel, is undergoing significant structural changes following the acquisition of a majority stake by the French investment firm Meridiam. While officials have officially refuted reports that Cyprus intends to withdraw from the project, the Cypriot government has emphasized that it remains in a state of evaluation, awaiting an updated due diligence study from the European Investment Bank expected by the end of 2026.

Finance Minister Makis Keravnos and Energy Minister Michalis Damianos informed parliament that the currently cited €1.9 billion figure primarily represents the cost of the subsea cable. Total expenses, including infrastructure for substations in Kofinou and Crete, insurance, and maintenance, are projected to significantly exceed this amount. The Cyprus Energy Regulatory Authority (CERA) has further noted that it is still awaiting clarifications from the Independent Power Transmission Operator (ADMHE) regarding the division of roles between the operator and the new French majority owner.

President Nikos Christodoulides has described these developments as a decisive step toward realization, noting that Cyprus is closer to implementation than at any point since the project's inception in 2012. Nevertheless, the government faces pressure from opposition leaders and the House President to move beyond bureaucratic inertia and finalize its strategic commitments, particularly given historical fiscal obligations made to the project since 2021.