Cyprus government weighs economic impact of Great Sea Interconnector

On September 13, 2026, Cyprus Energy Minister Michalis Damianos reaffirmed the government's support for the Great Sea Interconnector (GSI) project, citing energy security and geopolitical value as key priorities. The project aims to link Cyprus with Greece and eventually Israel as part of a broader infrastructure corridor.

Despite this support, Damianos expressed caution regarding the project's economic viability and its direct impact on consumers. Current calculations indicate that the construction will increase the electricity cost per kilowatt hour. The Minister stated that a minority stake in the project is not a government priority, as it would not grant significant decision-making power. Instead, the administration is exploring alternative financial strategies, such as seeking additional European funding or adjusting the cost-recovery timeline to ensure that the burden on households remains sustainable.