New Delay Hits Great Sea Interconnector (GSI) Project
The Great Sea Interconnector (GSI) project, designed to connect Greece and Cyprus through an undersea power cable, faces yet another setback. Despite earlier optimism from Greek Prime Minister Kyriakos Mitsotakis and Cypriot President Nikos Christodoulides about investor interest, the situation remains uncertain.
Recent Developments in the GSI Project
A videoconference held by the European Commission involved regulatory bodies from both Greece and Cyprus, alongside ADMIE, the project’s implementing body. The purpose of this meeting was to discuss the implementation of the GSI and address outstanding concerns.
Key Participants in the Discussion
- European Commission
- RAAEY – Greece’s Regulatory Authority
- RAEK – Cyprus’s Regulatory Authority
- ADMIE – Project Implementing Body
Brussels clarified that no updates to the initial studies for the GSI are required, despite previous calls for revisions. This is noteworthy given the project’s classification as a Project of Common Interest within the EU. Recent policies, including the Grids Package, categorize the Greece-Cyprus interconnection as one of Europe’s key energy highways.
Outstanding Issues and Investor Hesitancy
During the discussions, several unresolved issues were highlighted. Notably, RAEK has yet to make a decision on a €25 million revenue allocation for 2025. Furthermore, recovery of a similar amount for 2026 is now under scrutiny. Sources indicate that RAEK expressed doubts about the proposed revenue figures.
Challenges from NEXANS
The situation was further complicated by NEXANS, which announced it is revising the project’s schedule and its contractual obligations. The European Commission emphasized the urgency of resolving outstanding issues, warning that delays could heighten investment risks.
In light of these developments, and growing hesitation from Nicosia, the future of the Great Sea Interconnector looks increasingly uncertain. As the situation unfolds, continued collaboration between regulatory authorities and the European Commission will be vital for the project’s advancement.
