Greece is hiring an external adviser to review costs for the stalled Great Sea Interconnector, an undersea power cable intended to link mainland Europe to Cyprus. The €1.9 billion ($2.26 billion) project, partly funded by the European Union, has faced delays due to geopolitical tensions in the eastern Mediterranean and concerns over total costs, project viability, and liabilities for unforeseen setbacks.
Project Details
The Greek transmission operator IPTO, which took over the project in late 2023, plans a cable with 1,000-megawatt capacity. Cyprus has repeatedly requested clarifications on financial and technical aspects of the project. French cable manufacturer Nexans, contracted to supply the cable under a €1.4 billion deal, acknowledged delays and is renegotiating the delivery schedule.
Strategic and Investment Considerations
Greece and Cyprus aim to attract a wider pool of investors from the Middle East and the Americas, leveraging an updated cost assessment from a prominent advisory firm. Energy Minister Stavros Papastavrou said that a larger investor base is essential for implementing the scheme and restarting progress, underscoring the strategic importance of the cable in linking southern Europe with Mediterranean energy networks.
Implications
The delays reflect how infrastructure projects of this scale are vulnerable to geopolitical tensions and financing uncertainties. The Great Sea Interconnector is not just an energy project but a strategic asset, enhancing regional connectivity and energy security for both Greece and Cyprus. Attracting international investors could mitigate financial risks and accelerate construction, while also signaling the region’s resilience in maintaining critical energy infrastructure despite political and logistical challenges.
Analysis
The move to commission an independent cost review illustrates a pragmatic approach by Greece to balance technical, financial, and geopolitical risks. By updating the project’s financial profile and seeking broader international participation, Greece and Cyprus are effectively “de-risking” the initiative, aligning with global trends in energy and infrastructure investment where political uncertainty and cross-border collaboration increasingly influence project viability. Successful implementation would strengthen regional energy integration, support renewable energy ambitions, and reinforce the eastern Mediterranean’s position in the broader European energy network.
With information from Reuters.
