The Cyprus Energy Regulatory Authority (CERA) is still awaiting a response from ADMIE, following a letter with clarifying questions sent by the Authority on August 26, 2026, to the implementing body regarding the acquisition of GSI shares by the French company Meridiam, while a more recent assessment postpones the project’s completion from January 1, 2030, to January 1, 2031.
The President of the Cyprus Energy Regulatory Authority (RAEK), Polys Lemonaris, stated before the Parliamentary Committee on Energy—which on Tuesday examined, on its own initiative, the issue of the Greece–Cyprus – Israel, that with the clarifications still pending, “at this time, the ownership and management licenses for the Crete–Cyprus electricity interconnection project have been issued to ADMIE, and ADMIE is also the implementing entity,” while adding that no request has been submitted to the CERA to change the owner, the operator, or the implementing entity.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The ownership status of the power interconnection cable was of particular concern to the Members of Parliament, who posed relevant questions to the Chairman of the CERA. Specifically, in response to the AKEL Member of Parliament, Mr. Lemonaris explained that, based on current information, ADMIE will be responsible for monitoring the cable once the interconnection is completed, adding that CERA will have a say in determining who the actual beneficiaries will be.
The RAEK President also noted that the Authority is conducting an internal review of the contract terms. CERA stated that, although there is currently no specific ownership scenario, Cyprus will clearly have less control if the cable’s operating company is foreign-owned. It was clarified that the regulatory process includes provisions for imposing restrictions when it is determined and confirmed that national security issues arise.
Furthermore, in response to a question from Alma Movement MP Eirini Charalambidou, Mr. Lemonaris clarified that it is known that the company Meridiam purchased a 66% stake in the dormant company GSI, though the amount of the acquisition is not known.
As part of the briefing to the Committee, Mr. Lemonaris also stated that, as part of its responsibilities for reviewing project files, the Commission has already begun examining the file for the portion of the project concerning the Cyprus – Israel. He noted that the application has already been submitted, the completeness of the dossier is being reviewed, and an evaluation will follow in conjunction with the Israeli regulatory authority.
Mr. Lemonaris also referred to incentives approved by CERA for the section of the project concerning the Crete – Cyprus, which include a guaranteed rate of return for the operator of 8.3% for 7 years and 4.6% for an additional 17 years, with the project’s economically viable life span set at 5 years. He also noted that, during the project’s construction, the CERA did not provide any incentive for ADMIE to set a price for the repayment of any amount.
280 kilometers of cable have been laid; marine studies are pending
Speaking about the progress of the Crete-Cyprus electricity interconnection project – Cyprus, Mr. Lemonaris informed the Committee that work to lay 280 kilometers of cable in the sea—out of a total of approximately 900 kilometers—has been completed, while the construction of a 232-kilometer cable has also been completed, though it has not yet been laid.
He also stated that approximately 40% of the required marine surveys are still pending, estimating that it will take about six months to complete them, while explaining that the cost of the marine surveys is included in the budgeted expenditure approval of €571 million, which was granted by the Cyprus Energy Regulatory Authority (RAEK).
Specifically, Mr. Lemonaris had stated earlier that an investment budget of €571 million had been approved for capital expenditures for the regulatory period 2024 – 2025, based on a methodology developed by the regulators.
It is unclear how the cost will be determined; the €1.9 billion figure appears insufficient.
Mr. Lemonaris noted that the final cost of the project cannot yet be estimated with certainty, but added that electricity interconnections in other countries indicate that €1.9 billion is not enough. Mr. Lemonaris highlighted the completion of the marine surveys, which may reveal a need to reroute the cable.
In his introductory remarks on the financial aspects of the project, the RAEK Chairman explained that, based on a cost estimate of €1.9 billion, minus the EU grant of €657 million, the 37% share attributable to Greece amounts to €440 million, while €749 million is attributable to Cyprus, which bears 6% of the cost. Additionally, the participating member states share equally in the operating costs, which amount to €2 million per year until the project’s completion, and €15.5 million per year during operation.
Furthermore, in the event that the project is terminated due to the implementing entity’s fault, the regulatory authorities must assess the damages and calculate compensation; conversely, in the event of termination due to geopolitical risk, reasonable costs are apportioned equally.
Furthermore, Mr. Lemonaris explained that, as part of the incentives for the Crete – Cyprus, it was agreed to pay €25 million per year for the period 2025–2029, capped at €125 million.
He also noted that for 2025, a request was submitted for expenditures totaling €302 million, RAEK approved the payment of €82 million, which, he said, is justified by the supporting documents submitted. He explained that, if the remainder of the amount is also justified, CERA will consider its payment.
Furthermore, Mr. Lemonaris said that, although the target date for the project’s electrification had been set for January 1, 2030, a more recent assessment has pushed it back to January 1, 2031.
Responding to questions from Members of Parliament regarding aspects of the project’s cost, Mr. Lemonaris explained to DISY MP and Committee Chair Nicos Georgiou that the prospect of an increase in EU funding cannot be considered certain, in the event of a potential increase in the project’s cost, noting that a request would need to be submitted and that efforts would be made at the ministerial level. He pointed out, however, that the €657 million is the largest amount ever granted by the EU for an electricity interconnection project.
Furthermore, regarding the 63%-37% cost-sharing ratio and the possibility of a change should problems arise on one side during the course of the project, Mr. Lemonaris replied that a request would need to be submitted with substantial documentation proving that the cost increase was not due to ADMIE’s fault. He clarified, however, that there would be no additional cost to Cyprus in the event that the seabed is found to be difficult to navigate.
Responding to AKEL MP Stefanos Stefanou, who expressed concerns about the potential impact of the cable’s operation on investments and the competitive energy market, Mr. Lemonaris noted that the model being implemented provides for the separation of the wholesale and retail markets and allows for the sale of energy abroad. He also clarified that the operating costs of the interconnection will be covered by the cable’s users, therefore consumers will cover only the investment cost, which so far amounts to the approved €82 million.
Furthermore, Mr. Stefanou stated in remarks following the meeting that questions remain unanswered regarding whether the project will be completed, what the final cost will be, what Cyprus will be required to pay if it is not completed, and whether it will be sustainable for consumers—in the sense that it will lead to lower electricity prices. He noted that sustainability must be considered for both investors and consumers, while emphasizing that the final decision must be made once clear data on Cyprus’s energy sufficiency and security are available.
Mr. Stefanou expressed concern that Cyprus might end up paying hundreds of millions of euros even if the project is not completed. He referred to the memorandum of understanding between the two governments, under which the Republic of Cyprus will pay €125 million, in five annual installments of €25 million, as well as to the additional costs currently under discussion. He also pointed out that the seabed surveys were suspended following Turkey’s intervention off the coast of Kasos, noting that no answers have been provided regarding how the project will proceed in the event of obstruction. At the same time, he noted that the timeline has been pushed back from 2030 to the end of 2031, while significant issues remain unresolved.
He placed particular emphasis on the ownership status of the cable, responsibility for its operation, and the safeguards that will ensure the Republic of Cyprus retains control over the project, given its strategic importance and national security concerns. As he stated, the government must provide clear answers regarding who will own and be responsible for operating the interconnector, as well as what aspects will be controlled by the Cypriot side. He called on the government to take a clear stance, noting that as long as satisfactory answers are not provided on these key issues, concerns regarding the project’s implementation and operation will intensify.
DIKO MP Adamos Aspris stated that the final cost of the project is determined and influenced by various other factors and provisions of the agreement and, therefore, we cannot and are not in a position at this time to predict the final cost based on various estimates and rough assumptions.
He emphasized that the Cyprus-is a project of strategic importance that serves not only the strategic interests of the Republic of Cyprus but also those of its strategic partners, such as Israel, the United States of America, and others.
“It would therefore be important and very helpful for our strategic partners—since this project is also very important to them—to share not only in the financial cost but also in the geopolitical risk. Their participation and practical support will help us achieve the desired result sooner.”
Irini Charalambidou, a member of parliament for the Alma – Citizens for Cyprus party, stated that “the facts remain the same” regarding the electricity interconnection. “No one knows the final cost of the project; Cypriot consumers will be burdened with costs that no one can yet predict,” said Ms. Charalambidou.
She noted that “to date, there has been no response from ADMIE” to the letter sent by CERA on August 26, 2026, and asked “If they can’t even handle these simple matters, what will happen next?” He also said that discussions are now taking place in European circles suggesting that undersea interconnections are completely unprofitable, and that Cyprus is being steered toward this solution.
“Some people will bear enormous responsibility at the end of the day, and I suggest you take note of the statements each of us makes. Because it is time for everyone to take responsibility for the statements they make and the positions they take, especially when so much is at stake economically for Cypriot citizens and the Cypriot state,” he said.
Yiannis Laouris, a member of parliament for Direct Democracy, stated that he received specific answers to his questions during today’s committee meeting, which was attended by the representative of the Cyprus Securities and Exchange Commission (RAEK), Polivios Lemonaris. However, he noted that there are still at least three or four unknown factors, expressing the view that it is unacceptable to proceed with a billion-euro investment without all the facts having been clarified.
Mr. Laouris stated that he had formally requested that the Minister of Energy, once all the necessary information has been gathered, to present it to the public so that they know when and how the project will be implemented, who will bear the cost, and what the actual impact on household bills will be. At the same time, he proposed holding a referendum so that citizens can decide whether they want this specific investment to move forward.
Source: CNA
