French infrastructure investment firm Meridiam has acquired a majority stake in the Great Sea Interconnector, taking over control of the project from Greece’s Independent Power Transmission Operator (Admie).
The deal places Meridiam, which manages infrastructure assets worth around €19.9 billion, at the helm of the project linking the electricity grids of Cyprus, Greece and Israel. Former Cypriot Energy Minister George Papanastasiou welcomed the move, saying the involvement of a financially strong investor could improve the project’s prospects and support efforts by Cyprus and Greece to secure financing from the European Investment Bank.
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“It is very good news. This is a fund which is viable joining a project which was looking for financiers,” Papanastasiou said.
Fresh Momentum For A Delayed Project
Admie took over the project in October 2023 after replacing Cyprus-based EuroAsia Interconnector Ltd. Progress has been slower than expected, although Nexans completed an underwater cable trial earlier this year.
The European Commission has backed the interconnector as a strategic project that would end Cyprus’ energy isolation, strengthen grid stability and help lower electricity prices. Brussels has already allocated €658 million in grant funding.
Funding Challenges Persist
Despite that support, the project has faced financial and political setbacks. Cyprus withheld previously agreed annual €25 million payments to Admie, citing limited progress and disagreements over the financing model.
The European Public Prosecutor’s Office is also investigating the allocation of EU grants following allegations that a politically exposed person influenced the funding process. Greek Foreign Minister Giorgos Gerapetritis has denied any wrongdoing.
Meridiam’s entry as the controlling shareholder is expected to strengthen investor confidence as the project seeks additional financing and moves toward implementation.
