Kathimerini Greece Newsroom
Tensions are mounting over the Crete–Cyprus electric interconnection (GSI) as a regulatory impasse resurfaces just weeks before a critical August funding deadline. Despite a bilateral agreement last winter between Greece and Cyprus, no progress has been made, and stakeholders warn of a looming financial and geopolitical crisis.
According to an article by Kathimerini Greece's Chrysa Liangou, the €1.4 billion submarine cable project, funded in part by a €657 million EU grant, is stalled amid disputes between the French contractor Nexans, Greek and Cypriot regulators (RAAEY and CERA), and grid operator ADMIE. Ongoing EU-chaired talks, including two fruitless teleconferences in the past week, have failed to resolve the conflict.
Nexans, which has continued cable production under advance payments, has threatened to halt work unless another payment is made in August. ADMIE, having already spent €300 million, says it cannot proceed without regulatory clarity that would enable further bank financing.
At the center of the dispute is CERA’s refusal to approve €25 million in 2025 expenditures, citing the bilateral deal's annual cost recovery cap. ADMIE and the European Commission have pushed for flexibility, arguing the cap is not compatible with EU funding rules. CERA countered that the project is not following its original timeline due to delays, including stalled seabed surveys blamed on regional instability.
The European Commission is involved in discussions but has remained quiet on the geopolitical factors that have paralyzed the project. A new meeting is scheduled for July 23.
