Regulatory analysis reveals gaps in Great Sea Interconnector cost coverage

Regulatory decisions from the Cyprus Energy Regulatory Authority (CERA) and the Greek Regulatory Authority for Energy, Waste and Water (RAAEY) indicate that there are currently no legal safeguards requiring investors to cover costs exceeding the project's 1.9 billion euro budget. The Great Sea Interconnector (GSI) is currently owned by the French investment fund Meridiam and the Greek grid operator IPTO. Decision 300/2024, issued by CERA on September 20, 2024, establishes a framework for future negotiations rather than creating an absolute obligation for investors to absorb overruns.

Analysts note that given the existing delays, total costs are highly likely to exceed the 2 billion euro threshold, a scenario that would trigger these negotiations. This situation mirrors previous EU electricity projects, such as the Crete-Attica interconnection, where cost overruns were frequent. As it stands, there is no binding legal mechanism forcing GSI to cover expenditures beyond the initial budget using its own capital, making future financial accountability a point of significant uncertainty.