Great Sea Interconnector faces reality check amid technical, financial, and governance concerns

Despite the recent entry of French asset management firm Meridiam into the Great Sea Interconnector (GSI) project, an energy expert has urged a critical assessment, highlighting numerous outstanding technical, financial, and governance questions. Constantinos Hadjistassou, an energy researcher and professor at the University of Nicosia, emphasized that the project's overall viability remains the paramount concern.

Meridiam's acquisition of a 66 percent stake has done little to clarify the GSI’s ultimate shareholding structure, with Greece’s independent power transmission operator, Admie, appearing to retain a dominant role. This lack of transparency, Hadjistassou noted, raises ongoing questions about the project's management and governance. A new feasibility study by the European Investment Bank is also still pending.

Hadjistassou further critiqued a previous study commissioned by Admie from the National Technical University of Athens, which optimistically assessed benefits for Cypriot consumers. He contended that this report was based on "unrealistic assumptions."

Significant technical hurdles also persist. The precise route of the subsea cable, intended to run from Crete to Cyprus, remains undetermined. Concerns are mounting over the technological maturity required to lay cables at depths of 3,000 meters in certain areas – far exceeding the industry norm of approximately 2,100 meters. Only a handful of vessels globally possess this capability, and while the Jan De Nul company recently launched a vessel capable of 4,000-meter depths, its adaptation for the GSI is yet to be confirmed. The identification of geo-hazards like submarine trenches, volcanoes, and turbidity currents is also crucial, as the unburied cable's stability is paramount, and any route adjustments could inflate costs.

A key aspect of the GSI is Cyprus's intention to import renewable wind energy from Greece. However, Hadjistassou pointed out that Greece currently lacks sufficient wind energy capacity to meet its own needs, let alone generate surplus for export. Furthermore, due to logistical constraints, most imported renewable energy would need to originate from Crete, whereas the bulk of Greece's wind capacity is located on the mainland and other islands.

The European Commission has pledged €657 million to support the interconnector, though Hadjistassou indicated that only around €15 million has been disbursed to date for preliminary seabed mapping. Full funding release remains contingent on a "full notice to proceed" for the interconnector, with further disbursements tied to project progress.

Adding another layer of complexity, the European Public Prosecutor’s Office (Eppo) launched an investigation in September 2025 into how a private individual, reportedly lacking the necessary technical expertise or external financing, secured a €100 million loan from the Republic of Cyprus and subsequent backing from Brussels for the GSI.

Regarding local energy competition, Hadjistassou clarified that electricity imported during nighttime hours (approximately 7-9 pm) would primarily compete with Cyprus’s battery storage and conventional energy sources, not with abundant local solar power.

The financial details of Meridiam's 66 percent stake remain undisclosed, but Hadjistassou estimated its value at approximately €25 million, referencing the €48 million paid to the former project promoter, EuroAsia Interconnector, when it exited the project in October 2023.

Meanwhile, local daily Phileleftheros reported that Nicosia's position on funding the GSI remains unchanged, despite Meridiam's majority acquisition. Cyprus reportedly plans to disburse payments only after Greece issues a Navtex clearing the way for crucial seabed surveys. The report also indicated that Nicosia is weighing whether to cover claimed sums by Admie and potentially take an equity stake to share in future profits.