The future of the major submarine electricity interconnection between Crete and Cyprus, known as the Great Sea Interconnector, is now uncertain due to financial difficulties and geopolitical tensions. In response, Greek authorities and the transmission network operator ADMIE are considering an alternative plan to redirect the under-construction cable to the Aegean Sea.
The situation developed about two months after ADMIE suspended payments to the French cable manufacturer Nexans. Both parties are now discussing a revised proposal to install the cable between Greek islands, potentially linking the Dodecanese region, instead of following the original route through the Eastern Mediterranean.
The Crete-Cyprus link is part of the Great Sea Interconnector, a project valued at 1.4 billion euros. However, progress has stalled following Turkey’s opposition to seabed surveys in international waters, which were stopped in July 2024. While the Greek government maintains that the project will proceed as planned, there is still uncertainty about when or if survey operations will resume.
ADMIE and Nexans are currently assessing whether the high-specification cable already produced can be technically and legally adapted for the new Aegean route. The alternative plan would require a different technical setup, and reusing the current cable could increase costs for consumers. Nexans is also one of three bidders in the ongoing tender for the Aegean interconnection, with a final decision on the contractor yet to be made.
If the original Crete-Cyprus project is canceled, it may trigger compensation claims and further financial liabilities. Since officially taking over the project in October 2023, ADMIE has invested 270 million euros, largely sourced from European Union funds.
Under a 2024 agreement between Greece and Cyprus, if the project is suspended due to geopolitical reasons, both countries must share the costs. For Cyprus to cover 50 percent, Greece would have to formally cite Turkish threats as the reason for suspension, a step Athens appears reluctant to take.
Canceling the project could have serious consequences for ADMIE, potentially requiring a capital increase that might involve the Greek state, which owns 51 percent of the operator. The position of the Chinese State Grid, which holds a 24 percent stake in ADMIE, remains unclear.
