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New developments suggest that U.S. investors may play a bigger role in the stalled electricity interconnection between Cyprus and Greece, known as the Great Sea Interconnector (GSI), potentially reshaping the project’s economic and geopolitical landscape.
According to a report by Vasilis Nedos of Kathimerini, discussions are underway about bringing American investors, possibly through infrastructure-focused funds such as the U.S. International Development Finance Corporation (DFC), into the GSI project. The DFC has previously backed major Greek infrastructure initiatives, including a $125 million investment in Eleusis Shipyards, and U.S. interest in the Eastern Mediterranean aligns with broader regional energy and connectivity goals, including the India-Middle East-Europe Corridor (IMEC).
The interconnection project, designed to link Cyprus’ electricity grid with mainland Greece, has been “frozen” for years due to financial and technical uncertainties. Now, both Athens and Nicosia are pushing to update economic and technical studies, currently based on 2016 data, to make the project more appealing to potential investors.
The push for U.S. involvement comes amid growing geopolitical considerations. Cyprus President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis have emphasized the need for stronger U.S. engagement in the region. Christodoulides noted that Europe should align with U.S. leadership on Middle East issues, citing positive developments under President Donald Trump.
Energy ministers from Greece and Cyprus met in Brussels with European Commissioner Dan Jorgensen to underline the urgency of revising GSI’s technical and economic parameters in light of potential new investment. A key next step is a planned Washington meeting of energy ministers from Greece, Cyprus, Israel, and the U.S., where the integration of GSI into IMEC will be discussed, further linking the project to broader regional infrastructure and connectivity efforts.
The move coincides with a Greek initiative to promote a five-party forum including Greece, Cyprus, Turkey, Libya, and Egypt, aimed at discussing migration, environmental protection, connectivity, maritime zones, and civil protection. While the proposal could strengthen regional cooperation, political hurdles remain, including potential demands from Ankara and questions over Libya’s representation.
For now, the GSI project remains in flux, but the potential entrance of U.S. investors could inject new momentum into a project that is considered strategically important both for energy security and regional ties between Europe, the Eastern Mediterranean, and beyond.
