The Greece-Cyprus electricity interconnection project, known as the Great Sea Interconnector, has been put on hold due to escalating geopolitical tensions and financial difficulties. Greek electricity transmission system operator ADMIE has decided to suspend funding indefinitely.
Tensions escalated last July when Turkish naval vessels blocked an Italian survey ship from conducting research south of Kasos. Although the project was still in its early research phase, Turkish intervention and stalled Greek-Turkish negotiations created significant obstacles to its progress.
Greek government officials stated that adjustments are being made to align the project with current political and financial conditions. ADMIE aims to minimize the financial burden on Greek taxpayers while ensuring that seabed surveys in international waters can proceed without further disruptions. Meanwhile, the Greek government is exploring diplomatic solutions to determine whether the project can move forward without additional financial strain.
Cypriot Energy Minister George Papanastasiou confirmed that both the Greek Energy Ministry and the contractor Nexans agreed with ADMIE’s decision to temporarily halt payments. Greek Energy Minister Thodoros Skylakakis explained that the final order for cable production could not be placed due to unresolved technical, financial, and geopolitical challenges.
Despite Nexans pushing to proceed with the contract, Greek authorities insist that the project has not been canceled, emphasizing that the pause is necessary to avoid unnecessary costs. Analysts suggest that Greece may seek greater support from France, Israel, and the United States to facilitate the project’s continuation, given their strategic interests in the Eastern Mediterranean.
