Cyprus is preparing to release €25 million toward the Great Sea Interconnector (GSI), the undersea electricity cable tha...

Cyprus is preparing to release €25 million toward the Great Sea Interconnector (GSI), the undersea electricity cable that would end the island's energy isolation by linking it to the Greek grid, but the payment is conditional on Greece issuing a NAVTEX navigation notice before the end of October. Energy Minister Michalis Damianos told the House Finance Committee on Monday that the payment will come directly from the state budget. Cyprus has committed to contributing €25 million annually for up to five years, capping its total obligation at €125 million. The installment covering 2025 was deferred entirely because no physical work on the project advanced that year. Progress on the GSI has been uneven. The Cyprus Energy Regulatory Authority has recognized only €82 million of the €302 million in expenses claimed by ADMIE, Greece's grid operator and the project's implementing body. A European Investment Bank assessment is ongoing, and the project is tied to €650 million in EU funding, with additional financing potentially coming from private investors or the EIB if costs rise further. Damianos was blunt about the geopolitical dimension. He said Turkey is expected to react to the project as it did in 2020 and 2025, and acknowledged that Cyprus currently lacks the equipment to protect survey vessels operating in its exclusive economic zone. Greece, France, and French interests connected to the project are involved in managing that security challenge, he said, with Nicosia being kept fully informed by Athens. On costs passing to consumers, Damianos drew a firm line. Cypriot households and businesses will only begin paying their share through electricity bills once the cable is operational and power is actually flowing to the island, with repayment spread over 30 years. "If electricity does not come to Cyprus, we will not pay," he said. If the project moves forward without further delays, completion is targeted for the end of 2031. #Cyprus #GreatSeaInterconnector #EnergyPolicy