Greece and Cyprus Agree to Update Great Sea Interconnector Parameters

Leaders Affirm Commitment to Strategic Project

Athens, Greece – Greek Prime Minister Kyriakos Mitsotakis and Cypriot President Nikos Christodoulides announced on Wednesday, November 12, 2025, an agreement to update the financial and technical parameters of the Great Sea Interconnector (GSI) electricity cable project. The decision was reached during the 3rd Intergovernmental Conference held in Athens, underscoring both nations' commitment to the strategic energy infrastructure initiative.

Prime Minister Mitsotakis stated that the update is intended to allow the project to be 'strengthened with the entry of new, strong investors,' which he described as beneficial for all parties involved. President Christodoulides echoed this sentiment, emphasizing the shared goal of advancing projects with significant 'economic and geopolitical impact.'

The Great Sea Interconnector: A Vital Link

The Great Sea Interconnector, formerly known as the EuroAsia Interconnector, is a planned high-voltage direct current (HVDC) submarine power cable designed to link the electricity grids of Greece (via Crete), Cyprus, and eventually Israel. The project envisions a total length of 1,208 kilometers, with 310 kilometers connecting Israel to Cyprus and 898 kilometers linking Cyprus to Crete. It is designed to transmit up to 2,000 megawatts of electricity, with an initial phase targeting 1,000 MW.

The GSI is recognized as a Project of Common Interest (PCI) by the European Union and has received substantial EU funding, including €657 million from the Connecting Europe Facility (CEF) and €100 million under the Recovery and Resilience Facility. The project aims to end Cyprus's electrical isolation, enhance energy security for all participating countries, integrate renewable energy sources, and reduce CO2 emissions.

Addressing Financial and Technical Hurdles

The project has faced various challenges, including financial and regulatory differences between Greece and Cyprus. Concerns over cost, viability, and potential liabilities had been raised by the Cypriot side, leading to delays. Greece's Independent Power Transmission Operator (IPTO/ADMIE) took over as the implementing entity and project promoter in 2023, following the initial development by EuroAsia Interconnector Ltd.

A significant point of contention involved Cyprus's financial contributions, with an initial agreement for five annual payments of €25 million to IPTO. The recent agreement to update parameters is expected to facilitate Cyprus's participation in the project's share capital, potentially around 30%, which is anticipated to boost investor confidence and help secure additional funding, such as a potential €500 million from the European Investment Bank (EIB).

Broader Regional Significance

The 3rd Intergovernmental Conference also served as a platform to discuss broader regional cooperation and stability. Prime Minister Mitsotakis highlighted Greece and Cyprus as 'pillars of stability and reliability' in the wider region, especially in a time of uncertainty. The leaders also touched upon the importance of the 3+1 partnership (Greece, Cyprus, Israel, and the United States) in shaping the energy and geopolitical landscape of the Eastern Mediterranean.

Despite an ongoing inquiry by the European Public Prosecutor's Office (EPPO) into possible criminal offenses related to the project's EU funding, both leaders reaffirmed their commitment to moving forward. The updated parameters are seen as a crucial step towards resolving outstanding issues and ensuring the successful realization of this ambitious energy corridor.