EU Regulatory Authority CERA Grants €25 Million Funding to ADMIE for Great Sea Interconnector Project
The Great Sea Interconnector (GSI) project, a crucial trilateral electricity interconnection between Greece, Cyprus, and Israel, is currently facing significant delays. As of August 2025, the acquisition of Ownership and Interconnector Line Operator Licenses by ADMIE S.A., the project developer, remains unresolved [1][2].
The Cypriot Finance Ministry has withheld funds from ADMIE, citing the project's frozen status and expressing concerns over the potential impact on Cypriot consumers, should ADMIE receive €25 million to cover its obligations [1]. The European Commission has endorsed the GSI as a strategic infrastructure project, granting it €657 million, but progress is hindered by internal disagreements within the Cypriot government [2].
ADMIE has already invested significantly in the project, with approximately €300 million allocated primarily for construction [3]. However, no clear timeline for the awarding or transfer of the licenses has been announced, nor has there been confirmation of regulatory approval from Cyprus, a prerequisite for moving forward.
The GSI deal between Cyprus and Israel is expected to be finalized by the end of 2025, contingent on resolving the current uncertainties related to Cyprus’s role and financial participation [2][4]. At present, there is no formal issuance or acquisition of the Ownership and Interconnector Line Operator Licenses, as the project’s freeze and financial disputes have effectively put major license acquisition and operational steps on hold [1][2].
In a separate development, the Cyprus Energy Regulatory Authority (CERA) has approved a recovery of €25 million for the GSI for the period from January 1 to December 31, 2025 [5]. This decision, CERA Decision No. 302/2024, is conditional on ADMIE securing both the Ownership License and the Interconnector Line Operator License. CERA will communicate this decision to ADMIE and notify ACER, the Market Operator, and the Directorate-General for Energy of the European Commission [5].
The GSI is a Project of Common Interest, an electricity interconnection between Kofinou, Cyprus, and Korakia, Crete [5]. The recovery of actual investment expenses is contingent on ADMIE securing the necessary licenses. The Cypriot government's ambiguous stance continues to be the main hurdle in the project's progress [1][2].
References:
- The Financial Mirror
- Cyprus Mail
- ADMIE S.A. Annual Report 2024
- The Jerusalem Post
- CERA Press Release
- The Cypriot Energy Regulatory Authority (CERA) has approved a recovery of €25 million for the Great Sea Interconnector (GSI) project, but it's conditional on ADMIE securing both the Ownership License and the Interconnector Line Operator License.
- ADMIE's acquisition of the Ownership and Interconnector Line Operator Licenses is yet to be announced, a delay that is causing significant concerns for the business sector, as the GSI project is a key European Union (EU) initiative aimed at boosting the energy industry in Cyprus and the region.
- The Cyprus Finance Ministry's withholding of funds from ADMIE and the European Commission's endorsement of the GSI as a strategic infrastructure project highlight the complexities and disagreements surrounding the business aspects and financing of the GSI project.
