The Resurfacing Controversy Over the Great Sea Interconnector
The Great Sea Interconnector (GSI) project, which aims to link the power grids of Greece and Cyprus through an undersea cable, has once again become a point of contention. After a brief period of calm, the issue has reignited, with the Cypriot finance ministry taking a firm stance on financial matters. This has created tension within the government, as the energy ministry advocates for a more flexible approach, emphasizing the strategic importance of the project.
Finance Minister Makis Keravnos reportedly refuses to approve a €25 million payment to Admie, Greece’s independent transmission system operator, which is spearheading the GSI initiative. According to the agreement between Greece and Cyprus, both nations would cover Admie’s expenses over five years—totaling €125 million—until the interconnector becomes operational in 2030. This funding would come from an additional charge on electricity bills, a move that could be unpopular in Cyprus, where consumers already face high utility costs.
A key condition for this payment was not met, as highlighted by Keravnos during a teleconference involving Admie, the European Commission’s directorate general for energy, and the energy regulatory authorities of Cyprus (Cera) and Greece (Raek). The condition pertained to underwater work that should have been carried out simultaneously with the manufacturing of the cable by Nexans. However, no exploratory work has been conducted due to Turkey’s objections, which it claims would violate its continental shelf.
Admie and the European Commission have reportedly urged Raek to implement the new GSI tariff on electricity, disregarding the previous agreement between Greece and Cyprus. This situation raises several questions. What will happen to the cable, already ordered at an estimated cost of €1.4 billion, if Turkey continues to block any sea-based activities? Why is the European Commission’s energy directorate supporting Admie and pushing for the €25 million installment, especially when Turkey seems determined to obstruct the project?
Speculation suggests there might be an underlying agreement between Brussels and Ankara, considering the EU plans to contribute approximately €650 million to the project. It is unclear why the EU would support a project that risks wasting such a significant sum if there is a chance it could be blocked by Turkey.
Keravnos appears unaware of any such arrangements and remains firm in his position. Could the government be losing confidence in the project, using the lack of underwater work as a pretext to halt it? Keravnos has ruled out any state assistance for the project, while Raek, although theoretically independent, is likely to follow the government’s directives.
The future of the GSI remains uncertain. A new teleconference is scheduled for next week, aiming to resolve the conflict. The government must make a decision by then, but it seems improbable that it will back down, despite the justification provided by Turkey’s aggressive stance.
As the situation unfolds, all eyes are on the next steps, with the potential outcome affecting not only the energy sectors of Greece and Cyprus but also the broader dynamics of regional cooperation and international relations.
