French infrastructure investor Meridiam has agreed to take the position of largest shareholder in the Great Sea Interconnector, a planned subsea electricity link between Greece and Cyprus. The move is described as strengthening the project’s financing structure. The interconnector is expected to require around €1.9 billion in total investment.
The European Union has already allocated €657 million for the project. More than €1.2 billion remains to be covered through a combination of shareholder capital, project debt and regulated network revenues. Under the current cost-allocation framework, Cyprus is expected to fund 63% of the project cost, with Greece covering the remaining 37%.
Funding mix and cost allocation for the Greece-Cyprus link
The allocation framework reflects the strategic benefit attributed to Cyprus, which is described as the EU’s last non-interconnected national electricity system. Cyprus is also stated to be heavily dependent on imported fossil fuels. Meridiam’s entry is presented as adding an experienced private infrastructure investor with a long investment horizon.
The agreement does not remove development risks identified for the interconnector. These include construction complexity, seabed conditions, regulatory cost recovery and the affordability of network charges for Cypriot consumers. The project also faces geopolitical tension in the eastern Mediterranean.
Seabed surveys and cable supply arrangements
ADMIE, the project company and cable supplier Nexans are preparing a separate agreement for seabed survey work. The surveys are technically necessary before construction begins. They are also described as politically sensitive because parts of the planned route cross waters linked to competing Greek and Turkish maritime claims.
Nexans has already been selected to supply the submarine cable system. This places France as a central participant in both the ownership and delivery structure, according to the project description. The subsea link is expected to support changes in Cyprus’s generation mix by reducing reliance on oil-fired generation.
System impacts and risk factors for offshore construction
The cable could also provide access to the larger European electricity market and improve Cyprus’s ability to accommodate solar generation. It may create an export route during periods of surplus renewable output. The economics are stated to depend on hourly spreads, cable losses and the availability of flexible generation or storage.
The investment case is described as needing to account for unusually high technical and political risk. Subsea cables at this scale face potential cost escalation, schedule delays and constraints related to specialised vessels. A delay of 12–18 months would increase interest during construction, defer regulated revenue and add pressure on shareholder returns.
The interconnector is also described as having strategic value beyond immediate commercial cash flow. It would end Cyprus’s electricity isolation, strengthen eastern Mediterranean energy integration and create infrastructure intended to support a more renewable generation mix. Meridiam’s commitment is described as providing a financial anchor while key milestones remain completion of surveys, final financing and uninterrupted offshore construction .
