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In a report by Kathimerini's Apostolos Tomaras, a significant agreement has been reached for the long-anticipated Cyprus-Greece electricity cable project, led by ADMIE, Greece's power grid operator. This project, which aims to connect the power grids of Cyprus and Greece, has secured new funding and a strategic partner.
As per Bloomberg, ADMIE has struck a deal with the French investment firm Meridiam. Meridiam will purchase 49.9% of the shares in Grid Telecom S.A. (GSI), the company responsible for implementing the project. ADMIE will retain a controlling 50.1% stake in GSI. The French firm will pay €1.9 billion for its share and will have five members on the company’s board, while ADMIE will have six.
This deal also leaves room for other potential investors to join, which could be of particular interest to Cyprus. The involvement of Meridiam is seen as a stabilizing factor that will help reduce concerns over geopolitical risks—a key issue raised by Cyprus in the past. The presence of a major European investor adds credibility and security to the project.
ADMIE and Meridiam will split the financing obligations for the project based on their ownership percentages. This partnership comes on the heels of a Framework Agreement signed in September, which laid the groundwork for this deal.
Meridiam is a major player in the energy infrastructure sector, managing $22 billion in assets. The firm has experience with large-scale projects, including the UK-Germany electricity interconnector, which adds confidence in their capability to support the Cyprus-Greece project.
This agreement is expected to resolve some previous challenges and pave the way for smoother progress on the electricity cable, which is a vital link for Cyprus’s energy independence and regional connectivity.
