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Cyprus is under growing pressure from both Greece and Brussels to commit funds to the delayed Cyprus-Crete electricity cable project, despite serious concerns over its viability and geopolitical risks in the region.
According to Kathimerini's Apostolos Tomaras, the power link, touted as a game-changing project that would connect Cyprus to the European electricity grid, is currently stalled off the coast of Crete. While technical work remains on pause, tensions have shifted to the financial side, with the Greek operator ADMIE and the European Commission pushing Cyprus to start paying its share of the project’s cost recovery, roughly €25 million a year over the next five years.
ADMIE says it has already spent about €250 million and expects both Greek and Cypriot electricity consumers to share the burden.
But officials in Nicosia are pushing back, saying it makes no sense to invest in a project that is frozen and fraught with uncertainty.
“Cyprus won’t back out of what it signed,” said one official source, “but we can’t be expected to pour public money into a black hole.”
Finger-pointing and pressure
The finger-pointing escalated after ADMIE reportedly told European officials that Cyprus is refusing to pay its share, suggesting that the project is in danger of collapsing because of this. That narrative has irritated Nicosia, which insists its position is clear: it remains committed to the 2024 memorandum of understanding, but only if the project actually moves forward.
Cyprus is also frustrated that its repeated warnings about geopolitical instability, including Turkish provocations and regional tensions, are being brushed aside.
Adding to the pressure, the European Commission has called a high-level meeting next week, bringing together regulators from both Cyprus and Greece, ADMIE, and EU officials to try to narrow differences.
But some in Nicosia feel the Commission’s approach has been inconsistent, active when it needs Cyprus to agree and silent when it comes to addressing real security and political risks.
ADMIE sounds the alarm
ADMIE CEO Manos Manousakis has warned that unless revenue streams are confirmed by both countries’ regulators, the project may be forced to shut down due to lack of funding. He said ADMIE can’t continue covering costs on its own and needs assurances to access bank loans or funding from the European Investment Bank.
The company also threatened to halt payments to NEXANS, the firm responsible for building the cable, if decisions aren’t made soon, potentially jeopardizing the entire project.
ADMIE says it has already spent about €250 million and expects both Greek and Cypriot electricity consumers to share the burden.
Cyprus holds its ground
Still, Nicosia is standing firm. Officials argue that with Cyprus' small electricity market, high energy costs, and limited consumption, the island can’t afford to take on major financial risks without guarantees.
What’s more, the government insists the annual €25 million contribution, coming from a pollution fund rather than added to electricity bills, must be tied to clear progress and security assurances.
For now, all eyes are on the upcoming meeting brokered by the European Commission, as efforts to rescue the troubled power cable project enter a critical week.
