French infrastructure investor Meridiam has agreed to take the position of largest shareholder in the Great Sea Interconnector, a planned subsea electricity link between Greece and Cyprus. The move is intended to strengthen the project’s financing structure. The interconnector is designed to connect the two national power systems.
The project is expected to require approximately €1.9 billion in investment. The European Union has already allocated €657 million, leaving more than €1.2 billion to be covered through shareholder capital, project debt and regulated network revenues. Under the current cost-allocation framework, Cyprus is expected to fund 63% of the project cost, while Greece covers the remaining 37%. The allocation reflects the strategic benefit for Cyprus, which remains the EU’s last non-interconnected national electricity system and relies heavily on imported fossil fuels.
Financing role and development risk profile
Meridiam’s entry brings an experienced private infrastructure investor with a long investment horizon. However, it does not eliminate principal development risks identified for the project. These include construction complexity, seabed conditions, regulatory cost recovery, geopolitical tension in the eastern Mediterranean and the affordability of network charges for Cypriot consumers.
The financing structure also depends on execution milestones that remain exposed to technical constraints. Subsea cables of this scale face potential cost escalation, schedule delays and specialised-vessel constraints. A 12–18 month delay would increase interest during construction, defer regulated revenue and place additional pressure on shareholder returns.
Seabed surveys and cable supply arrangements
ADMIE, the project company and cable supplier Nexans are preparing a separate agreement for seabed survey work. The surveys are technically necessary before construction begins. They are also politically sensitive because parts of the planned route cross waters affected by competing Greek and Turkish maritime claims .
Nexans has already been selected to supply the submarine cable system. That selection places France as a central participant in both the ownership and delivery structure associated with the interconnector . Meridiam’s participation further deepens French industrial and financial backing for the project.
Expected system impacts for Cyprus and market integration
For Cyprus, the cable is expected to reduce dependence on oil-fired generation. It would also provide access to the larger European electricity market and improve the system’s ability to accommodate solar generation. The interconnector could additionally support an export route during periods of surplus renewable output.
The economics of any exports would depend on hourly spreads, cable losses and the availability of flexible generation or storage . Beyond near-term commercial cash flow, the project is described as ending Cyprus’s electricity isolation and strengthening eastern Mediterranean energy integration. It would also create infrastructure capable of supporting a more renewable generation mix.
The decisive stage following Meridiam’s commitment involves converting that backing into completed surveys, final financing and uninterrupted offshore construction . This includes progressing from politically sensitive seabed survey activities toward final investment decisions and construction readiness.
