EU Pushes to Revive Greece Cyprus Israel Power Cable Project Ahead of Critical Deadline

After months of stagnation, a renewed European effort is underway to revive the Greece–Cyprus–Israel electricity interconnection project, as a critical funding deadline looms in August. The European Commission is stepping in with diplomatic coordination, while Athens and Nicosia are aligning to ensure the continuation of this major infrastructure initiative.

A Strategic European Energy Project

The power interconnection is not simply a bilateral venture — it is framed as a project of strategic importance for the European Union. According to Cyprus’s Energy Minister Giorgos Papanastasiou, the EU must play a more active role and treat the project with the same urgency as other energy infrastructure efforts, such as undersea cables in the Baltic Sea.

“This is not a bilateral project — it is European,” Papanastasiou said over the weekend during a public discussion. “Europe must speak up and be demanding of any state seeking EU funding, especially if that state obstructs implementation of European infrastructure.” The sentiment was echoed by the Greek government, which has long called for EU backing and legal protection under international maritime law.

A virtual conference hosted today by the EU Directorate-General for Energy will bring together key regulatory and governmental stakeholders, including Greece’s ADMIE (Independent Power Transmission Operator), Cyprus’s RAEK (Energy Regulatory Authority), and energy ministries from both countries.

Cyprus Signals Support with Key Funding Approval

Cyprus has shown a shift in position, moving from cautious hesitation to proactive support. In the coming days, RAEK is expected to approve a €25 million payment toward the GSI project — a commitment that stems from the bilateral agreement with Greece covering the first five years of construction. This marks a significant change, as geopolitical uncertainty had previously made the Cypriot side reluctant to move forward with further funding.

August Deadline Could Make or Break the Project

The timing is critical. The project’s viability hinges on actions taken before August, when advance payments to French cable manufacturer Nexans are set to expire. ADMIE has already invested approximately €300 million — €250 million for construction and €50 million to acquire the project from its previous implementer — but has yet to recover any of that cost.

Without swift regulatory approvals to unlock further funding, ADMIE has warned that it will be unable to continue payments to Nexans, who in turn may halt production. The upcoming weeks are crucial to maintaining momentum, avoiding disruption, and keeping the project on track.

Regulatory Approvals May Unlock Continued Payments

A recent decision by Greece’s RAAEY (Regulatory Authority for Waste, Energy and Water) approved the recovery of €7.3 million from Greek electricity consumers starting July 1. Cyprus’s anticipated approval of €25 million is seen as a vital next step to securing ongoing payments to Nexans. Confirmation on the timeline of RAEK’s decision is expected during today’s EU-hosted teleconference.

60% of Seabed Surveys Completed

ADMIE reports that 60% of seabed survey work has been completed, with the remaining 40% located in international waters. These final segments are expected to be completed within three months, keeping the overall project on schedule for cable laying to begin in 2026.

Political Optimism Despite Challenges

Greek Deputy Prime Minister Kostis Hatzidakis, when asked about the project during a weekend forum, refrained from giving a direct answer but struck a cautiously optimistic tone. Drawing a comparison to past discussions on regional maritime disputes that have since quieted, he hinted that progress may be possible behind the scenes.

As European stakeholders mobilize, the coming weeks will determine whether this key regional energy project survives its financial and political hurdles, reaffirming Europe’s commitment to cross-border infrastructure and energy security.

Source: tovima.com