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The European Commission is stepping up pressure on Cyprus to approve cost recovery measures for the stalled Great Sea Interconnector (GSI) electricity cable, amid mounting tensions between Nicosia and Athens over the ambitious but delayed project.
According to an article by Kathimerini's Apostolos Tomaras, at the center of the dispute is ADMIE, the Greek transmission operator and project implementer. It claims to have already spent nearly €250 million on the EU-backed cable linking Cyprus to the European power grid via Crete. ADMIE says it cannot continue funding the project without revenue guarantees from both Cyprus and Greece and has warned that failure to secure those guarantees may lead to a halt in payments to cable manufacturer NEXANS.
The Commission has scheduled a meeting next week with the energy regulators of both countries, RAEK in Cyprus and RAAEY in Greece, to address the cost-sharing impasse. The development marks Brussels’ return to a project it has largely ignored in recent months, despite geopolitical tensions in the eastern Mediterranean, particularly Turkey’s renewed provocations in waters between Crete and Cyprus.
Cypriot officials view the Commission’s renewed involvement as an effort to force Nicosia into accepting ADMIE’s cost recovery plan, which would impose financial burdens on Cypriot consumers. Sources in the capital argue that ADMIE is shaping a narrative blaming Cyprus for the project’s potential collapse.
While Greece has approved its portion of the cost recovery, Cyprus has held off, citing ongoing geopolitical risks and the lack of project progress. “The Republic of Cyprus maintains its commitment under the September 2024 Memorandum of Understanding,” one official said, “but that assumes the project is active, which it currently is not.”
Cyprus is also expected to contribute an additional €125 million over the next five years, drawn from its emissions trading fund, though authorities insist this will not impact electricity bills.
The GSI interconnector has been designated a Project of Common Interest and is backed by €657 million in EU funding. Still, with no visible progress on the ground and continued regional instability, doubts are growing over whether the cable will ever be completed.
