Status and financial considerations of the Great Sea Interconnector project

The Cypriot government continues to express support for the Great Sea Interconnector (GSI) project, highlighting its importance for national energy security and ending the island's isolation. Minister of Energy Michalis Damianos stated on September 13, 2026, that the government remains focused on the project's economic viability and its potential impact on consumer electricity prices. Current estimates place the project's cost between 1.9 billion and 2.5 billion euros, with concerns regarding the financial burden on the public.

To mitigate risks, Cyprus and Greece have requested an updated technical and financial assessment from the European Investment Bank (EIB), which is expected by the end of 2026. Officials are exploring various strategies, including seeking additional European funding, adjusting the cost payback period, and attracting further private investment to reduce the taxpayers' contribution, which is currently estimated at approximately 63%. Damianos clarified that direct state participation in the project's equity is not an absolute goal if it does not grant significant decision-making power. The project is seen as part of the broader India-Middle East-Europe corridor, connecting Cyprus to Greece and subsequently to Israel to stabilize the regional power grid.