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Advancing Energy Security: Cyprus-Crete Interconnector Moves Forward

by THEFUTURE.TEAM

July 8, 2024

In a significant step towards energy security and regional cooperation, Cyprus and Greece have advanced plans for the Cyprus-Crete interconnector, a key segment of the broader EuroAsia Interconnector project. This development follows positive study results and recent regulatory decisions that paved the way for this critical infrastructure project.

The Cyprus-Crete interconnector, now known as the Great Sea Interconnector, aims to establish a high-voltage direct current (HVDC) link between Cyprus and Crete. The project’s approval comes after thorough evaluations by the Independent Power Transmission Operator (ADMIE) of Greece and the Cyprus Energy Regulatory Authority (CERA). This collaboration underscores the project’s importance in enhancing energy connectivity and security in the Eastern Mediterranean.

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According to ADMIE President and CEO Manousos Manousakis, construction is set to begin in 2024, with an expected completion timeline of four to five years. This ambitious project is supported by substantial funding, including a significant €800 million grant from the European Commission and a €100 million contribution from Cyprus, part of a total projected cost of €1.9 billion. The remaining funds will be sourced from ADMIE, investment funds, and other resources.

The interconnector is poised to transform the energy landscape by enabling the exchange of electricity between Cyprus and Greece, thereby reducing energy costs, enhancing supply reliability, and facilitating the integration of renewable energy sources. This strategic infrastructure will not only benefit the involved nations but also contribute to the broader European energy network.

The project has faced delays, particularly due to the complex regulatory environment and the need for comprehensive studies. However, the recent positive study outcomes have accelerated decision-making processes. Cyprus is expected to finalise its participation by the end of January 2024, reflecting its commitment to the project despite earlier setbacks.

Minister of Energy George Papanastasiou highlighted the project’s potential to usher in a new era of energy efficiency and security for Cyprus. He emphasised that the interconnector would reduce the island’s energy isolation and dependency on fossil fuels, aligning with broader EU energy policy goals.

Additionally, the involvement of the German company Siemens in connecting the converters between Cyprus and Crete marks a critical milestone. The contract with Siemens is anticipated to be signed by the end of 2024, further solidifying the project’s implementation timeline.

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Cyprus Services Sector Shows Robust Performance In 2025 As Tourism, Digital Innovation, And Shipping Surge

The Employers and Industrialists Federation (OEV) reported growth across Cyprus’ services sector in 2025, with increases recorded in tourism, professional services and administrative activities. Data show continued expansion across multiple sub-sectors, reinforcing the role of services in economic output and employment.

Service Sector Leadership

Accommodation and food services grew by 9.5%, while administrative and support activities increased by 7.4%. Professional, scientific and technical activities rose by 4.6%, followed by information and communication at 4.3%. Transport and storage recorded growth of 2.8%, while real estate activity increased by 0.4%. These figures indicate broad-based expansion across service industries.

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A Remarkable Tourism Surge

Tourist arrivals reached 4,534,073 in 2025, marking a 12.2% increase year-on-year. December arrivals totaled 156,959, up 18% compared with the same period a year earlier. Tourism continues to support revenue generation and seasonal demand across the economy. Growth in visitor numbers contributes to activity in hospitality and related sectors.

Driving Digital Transformation

OEV is supporting digital adoption through initiatives such as the DiGiNN Cyprus Digital Innovation Hub. The program focuses on improving business processes, skills development and technology integration. Additional efforts include the establishment of a Digital Transformation and Innovation Committee and international engagement through business missions. These actions support the adoption of digital tools across sectors.

Resilient Shipping Sector

Shipping accounted for about 7% of Cyprus’s GDP in 2025, remaining a key component of the economy. The Cyprus Registry recorded its highest tonnage in 20 years, with an increase of nearly 20%. Fleet growth strengthens Cyprus’ position within European Union shipping registries and global maritime markets. The sector continues to contribute to economic stability.

Strengthening The Economic Foundation

OEV is organizing conferences, workshops and exhibitions to support business development across sectors. These initiatives focus on improving operational practices and industry collaboration. Continued investment in services and digital infrastructure is expected to support economic performance.