Great Sea Interconnector takes major step forward with Cyprus-Israel investment bid
"The implementation of Great Sea Interconnector takes major step forward with Cyprus-Israel investment bid is set to drive significant advancements in Cyprus's energy market. This initiative introduces critical infrastructure updates designed to enhance capacity and align with long-term transition goals."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
The ambitious Great Sea Interconnector (GSI) project achieved a significant milestone today as Greece’s Independent Power Transmission Operator (Admie), the project’s promoter, officially submitted an investment request for the Cyprus-Israel electricity link to energy regulators in both countries. This application marks a crucial progression in the implementation of this strategic European Union Trans-European Networks for Energy (TEN-E) initiative.
The move comes amidst renewed impetus for the GSI, which aims to forge a vital electricity connection between Greece, Cyprus, and Israel. Recent developments, including the French infrastructure investment group Meridiam acquiring a majority stake in the GSI project company, and a high-level discussion between Greek Energy Minister Stavros Papastavrou and his Israeli counterpart Eli Cohen on the Cyprus-Israel section, have underscored the project’s growing momentum.
Admie's investment request follows the successful completion of a comprehensive cost-benefit analysis (CBA) and a proposal for cross-border cost allocation (CBCA), both mandatory under EU regulations. These critical studies, developed in close consultation with Cypriot and Israeli energy ministries, Cyprus’ Transmission System Operator (TSO), and Israel’s system operator Noga, incorporated updated forecasts on electricity demand, renewable energy deployment, and future grid requirements.
Crucially, the analyses unequivocally concluded that the Cyprus-Israel interconnection remains economically viable across all scenarios examined. Furthermore, the studies highlighted the project's capacity to substantially bolster electricity supply security, facilitate greater integration of renewable energy sources, and deepen the integration of the Eastern Mediterranean electricity market within the broader European grid.
The submission initiates a formal assessment process by Cypriot and Israeli energy regulators, who are tasked with reaching a joint decision on the project's cost-sharing mechanism and how these costs will be recovered through regulated revenues. Admie has affirmed its commitment to collaborating closely with all relevant authorities and stakeholders on the technical, regulatory, and financing aspects essential for successful project delivery.
A final investment decision (FID) is anticipated once both countries approve the proposed investment framework, paving the way for financing arrangements. Admie also plans to attract additional investors for the Cyprus-Israel segment, mirroring the successful model adopted for the Greece-Cyprus leg with Meridiam’s recent entry.
Designated as a Project of Common Interest (PCI) by the European Union, the Great Sea Interconnector will boast a transmission capacity of 1,000MW via a 500kV high-voltage direct current (HVDC) system. Current plans envision the converter station in Cyprus at Kofinou, with its Israeli counterpart located in the Hadera area. The approximately 324-kilometre submarine cable, laid at depths between 2,200 and 2,400 metres, will enable bidirectional electricity flow, optimizing power transfers based on system needs.
Last week, Energy Minister Michael Damianos welcomed Meridiam’s involvement, stating that the Cyprus government awaits the European Investment Bank’s due diligence study on the project’s financial viability before deciding on potential Republic of Cyprus shareholder participation.
Internationally, a bipartisan group of US lawmakers has urged Secretary of State Marco Rubio and US International Development Finance Corporation (DFC) chief executive Ben Black to prioritize the GSI, emphasizing its strategic importance for strengthening cooperation, energy security, and US interests in the Eastern Mediterranean.