Great Sea Interconnector Faces New Delays, 2031 Completion Projected
"The completion of the Great Sea Interconnector linking Greece and Cyprus has been postponed to January 2031, with total costs now projected to exceed €1.9 billion. Cyprus energy regulator CERA attributed the setback to cable manufacturer Nexans having production fully booked through mid-2028 alongside ongoing seabed survey and funding hurdles. Promoted by Greece's IPTO, the strategic 1,000 MW subsea link remains critical to ending Cyprus’s energy isolation and integrating regional renewables despite escalating financial and geopolitical headwinds."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
The Great Sea Interconnector, a vital electricity cable designed to link the power grids of Greece and Cyprus, is now projected for completion in January 2031. This new timeline, confirmed by Cyprus's energy regulator, CERA, represents another significant setback for the project, which was previously expected to be operational by 2029.
The primary reason for the extended delay stems from cable manufacturer Nexans having its production schedule fully booked until mid-2028, pushing back the restart of manufacturing for the interconnector. This further extends the project's timeline and raises the estimated overall cost to more than €1.9 billion.
The interconnector, a "Project of Common Interest" (PCI) for the European Union, is designed to connect Crete in Greece with Cyprus, with potential future expansion to Israel. Its strategic importance lies in ending Cyprus's energy isolation and facilitating the exchange of electricity, particularly from renewable energy sources, across the Eastern Mediterranean.
Originally developed by EuroAsia Interconnector, the project encountered substantial financial and technical difficulties. In July 2023, Greece's independent power transmission operator, IPTO, officially took over as the project promoter, receiving approval from CERA. Following this, Nexans secured the €1.4 billion engineering, procurement, construction, and installation (EPCI) contract in October 2023 for the manufacturing and installation of the ±500 kV HVDC cable. Further bolstering financial backing, French investment fund Meridiam acquired an 80% stake in the project in March 2024.
Despite receiving significant EU funding commitments, including up to €657 million from the Connecting Europe Facility (CEF) and €100 million from the Recovery and Resilience Facility, CERA has noted "significant challenges" in securing the remaining necessary funding and ensuring timely implementation.
The 1,208-kilometer, 1,000 MW capacity cable is crucial for integrating more renewable energy into the regional grid and enhancing energy security. However, the project has also navigated geopolitical complexities, including objections and Navtex warnings from Turkey regarding cable-laying operations in disputed maritime areas. Concerns about potential future cost overruns and additional delays continue to underscore the formidable challenges inherent in such a large-scale infrastructure endeavor.