France Joins Billion-Euro Greece–Cyprus Project, Agreement Reshapes the Mediterranean’s Energy Map

The undersea electricity link between Greece and Cyprus is entering a new phase. The agreement signed provides for the French fund Meridiam to own around 66% of the shares in the special-purpose company established to develop the project. The remainder will remain under the control of Greece’s electricity transmission operator, ADMIE, which will continue to bear technical responsibility for the implementation and future operation of the interconnection.

With an estimated cost of around 1.9 billion euros, the project had been slowed by regulatory disputes, high costs and geopolitical tensions in the Eastern Mediterranean. For this reason, the agreement is seen as a decisive step toward securing financing and concretely restarting the work.

The Great Sea interconnection plan involves laying an undersea cable approximately 900 kilometers long. Its initial capacity will be 1,000 megawatts, while it is expected to eventually reach up to 2,000 megawatts. Through Greece, this infrastructure aims to connect Cyprus to the European electricity system and end the island’s energy isolation.

Cyprus is the last EU member state that remains disconnected from the continental electricity grid. Completion of the project will connect it to the European energy market, enabling it to import and export electricity, reduce its dependence on costly domestic generation and increase the security of supply.

For Greece, meanwhile, this undersea link consolidates its position as an energy hub between Europe and the Eastern Mediterranean.

Meridiam’s participation adds a strong French presence to the initiative. According to data reported by Greek media, approximately 60% of the marine surveys have been completed. The remaining work is focused mainly on the area between Karpadhos and Cyprus, a zone where tensions with Turkey have previously been recorded.

The French fund is expected to provide the financing needed to complete this phase. At the same time, the possibility of financing the project through the European Investment Bank is also being assessed.

The presence of a major investor from France takes the project beyond the framework of bilateral Greece–Cyprus cooperation. The interconnection thus takes on a more distinctly European character, while direct French strategic and economic interests become involved.

The development carries particular weight in a region where Greece and Turkey have for years had disputes over maritime borders, exploration rights and energy initiatives.

During 2024, Ankara’s objections led to the suspension of marine surveys to determine the cable’s route. Turkey claimed that some of the work was being carried out in areas where its approval was required, but these claims were rejected by Athens and the European Union.

Brussels supports the interconnection as part of policies aimed at integrating energy markets, diversifying supply sources and increasing energy security.

At a subsequent stage, the link is intended to continue from Cyprus toward Israel. If the entire line is completed, it will create a new energy corridor connecting Israel, Cyprus and Greece to the European market.