On September 21, Greek Energy Minister Theodoros Skylakakis and Cypriot counterpart Giorgos Papanastasiou signed a significant bilateral agreement to advance the “Great Sea Interconnector” (GSI) project. This move followed key regulatory changes by Cyprus’s energy authority that approved the project, which aims to connect the power grids of Greece and Cyprus, ending the island’s energy isolation and providing an alternative energy source. Approval had previously stalled due to disputes over cost and risk-sharing between the Greek and Cypriot regulatory authorities. Following a meeting in Athens on September 20, Greek PM Kyriakos Mitsotakis and Cypriot President Nikos Christodoulides resolved outstanding differences.
The bilateral agreement focuses on three main points: equitable sharing of geopolitical risks, Cyprus’s involvement in the project’s ownership, and a forthcoming regulatory decision by Greece’s Regulatory Authority for Energy (RAE) on revenue caps. Cyprus will also conduct due diligence before finalizing its shareholder role. The ambitious project has garnered substantial support from the European Union, which has designated it a Project of Common Interest (PCI) and allocated 657 million euros in funding. The total investment is projected to reach 1.9 billion euros, with completion targeted for 2029.
