Approved €25 Million Payment for Great Sea Interconnector by CERA in Favor of ADMIE
In the mid-2025 landscape, ADMIE S.A., the project developer, is yet to secure the Ownership and Interconnector Line Operator Licenses for the Great Sea Interconnector (GSI) project. The path towards obtaining these licenses is fraught with challenges, as financial, institutional, and geopolitical obstacles persist.
The GSI project, an electricity interconnection between Kofinou, Cyprus, and Korakia, Crete, is currently experiencing delays. Financial and political hurdles have arisen, with the Cyprus Finance Ministry's recent refusal to approve a €25 million payment to ADMIE, part of project financing. This refusal underscores the financial and political challenges that ADMIE must navigate in its role as majority stakeholder and operator.
Moreover, surveys in international waters for the GSI have been halted due to geopolitical issues, particularly tensions involving Turkey. This interruption has complicated the project's progress and licensing processes.
Despite these challenges, the European Commission remains committed to the GSI, pledging €657 million to support the Greece-Cyprus section, alongside technical and institutional assistance. This support provides a positive framework for license granting once political and financial issues are resolved.
To secure the licenses, ADMIE must fulfill several requirements. These include regulatory approvals, demonstrating financial viability, complying with technical and operational standards, addressing geopolitical and environmental concerns, and securing agreements on tariffs, operation frameworks, and cross-border coordination.
Recently, the Cyprus Energy Regulatory Authority (CERA) has approved the recovery of €25 million for the GSI project for the period from January 1 to December 31, 2025. However, this approval is contingent on ADMIE S.A. securing the Ownership and Interconnector Line Operator Licenses.
In summary, ADMIE S.A. faces significant hurdles in obtaining the licenses for the GSI project. The EU's strategic backing offers important support, but progress depends on resolving the outstanding financial, regulatory, and geopolitical challenges.
- The Great Sea Interconnector (GSI) project, a business endeavor involving electricity interconnection between Kofinou, Cyprus, and Korakia, Crete, is encountering business delays due to financial and political complications with the Cyprus Finance Ministry.
- ADMIE S.A., the project developer and majority stakeholder, is required to fulfill various criteria to secure the Ownership and Interconnector Line Operator Licenses for the GSI, including demonstrating financial viability and addressing geopolitical concerns.
- Despite the challenges faced by the GSI project, the European Union (EU) has pledged €657 million to support the Greece-Cyprus section, and has also promised technical and institutional assistance, thereby providing a positive framework for the resolution of political and financial issues and the granting of licenses.
