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GSI ‘going ahead as planned, through Cyprus’

Cyprus Mail · 2026-09-06

AI SUMMARY

• What happened: The Great Sea Interconnector (GSI) project is advancing as planned and will include a segment passing through Cyprus, according to Energy Minister Michalis Damianos. • Why it matters: The GSI aims to enhance energy connectivity between Cyprus, Greece, and Israel, with significant financial backing from the European Union and interest from foreign investors, which could impact energy security and infrastructure in the region. • What to watch next: The upcoming due diligence study will clarify the project's overall cost and financial mechanisms, while the involvement of additional investors may be necessary to ensure the project's viability and manage costs for Cypriot consumers.

**GSI ‘Going Ahead as Planned, Through Cyprus’**

The Great Sea Interconnector (GSI) project is advancing as scheduled and will include a segment passing through Cyprus, according to Energy Minister Michalis Damianos. In a statement made on Sunday, Damianos affirmed that "everything is running normally" regarding both the Cyprus-Crete and Cyprus-Israel sections of the interconnector. This announcement comes in response to recent reports suggesting that the project might proceed without Cyprus's involvement, which Damianos firmly denied.

The GSI aims to enhance energy connectivity between Cyprus, Greece, and Israel, and its progress has been bolstered by a recent agreement between Cypriot President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis. Following this agreement, a new investor has entered the project, prompting the need for a new due diligence study. This study is expected to provide clarity on the project's overall cost and the financial mechanisms needed to support it.

Minister Damianos emphasized that the project's viability will be influenced by the amounts that can be invested. He noted that if the project's costs exceed initial estimates, it may necessitate the involvement of additional investors and resources to ensure its continuation. Currently, the European Union has pledged €658 million towards the GSI, but Damianos highlighted the importance of assessing whether project costs have escalated and how to maintain its financial sustainability.

A critical concern raised by the Energy Minister is the potential impact on Cypriot consumers, who will contribute to the project's costs through their electricity bills. To mitigate this burden, Damianos stressed the need to attract more investors to the project, ensuring that the financial implications for consumers remain manageable.

The GSI has garnered interest from foreign investors, particularly following the French company Meridiam acquiring a majority stake in the project. Damianos expressed optimism regarding this interest, stating, “Since there is interest in general, it is a project that we must find a way to implement and not whether it will be implemented.”

As the GSI continues to progress, it is poised to play a significant role in enhancing energy security and connectivity in the Eastern Mediterranean region. The project's successful execution could have far-reaching implications for energy supply and infrastructure in Cyprus and beyond.

Source: Cyprus Mail
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