Greece’s power grid operator is pushing to charge consumers for a major undersea cable project linking Greece and Cyprus, despite the €1.9 billion ($2.1 billion) Great Sea Interconnector remaining largely frozen due to geopolitical tensions.
Manos Manousakis, chairman and CEO of Independent Power Transmission Operator (ADMIE), confirmed in a Bloomberg interview that the company has submitted requests to Greek and Cypriot regulators seeking cost recovery for €250 million ($275 million) already invested in the project.
More specifically, Manousakis stressed that when ADMIE approaches banking institutions to secure loans, lenders request documents showing there is revenue recovery. He added that project’s continuation requires the ability to obtain financing.
The statements reflect ADMIE’s financial predicament after underwater cable surveys were suspended last July following Turkish objections in international waters.
The French contractor Nexans is expected to pause cable production in August unless regular payments continue under contract terms.
The Greek regulator, RAE, is expected to approve €7.3 million in expense recovery for 2024-2025 by June 15, allowing ADMIE to recoup costs through higher system usage fees on electricity bills starting July 1.
However, Cyprus appears reluctant. “For someone to pay, there must be a project in progress. The Great Sea Interconnector is a European project that is not moving forward,” a Cypriot government official told Kathimerini.
The official expressed concern about ADMIE’s continued borrowing for a project that “has not been unlocked and continues to face serious obstacles.”
The European Union is co-financing the Greece-Cyprus connection with €657 million. A cost-benefit study for the Cyprus-Israel portion is expected by month’s end.