Greece has put the Cyprus-Crete power connection project on hold following the power grid operator IPTO’s temporary suspension of payments to French cable manufacturer Nexans.
The electricity link project aims to connect Greece with Cyprus, the only EU member not yet linked to the European electricity transmission system. The project also envisions a future extension to Israel, also enhancing its energy security.
The Greek operator reportedly withheld a scheduled payment due on 28 February, amid growing concerns about Turkish objections that appear more substantial than initially assessed by project planners.
Why Turkey objects to Cyprus-Crete power connection
Turkey claims that the electricity link violates its rights according to a memorandum on maritime zones signed with a provisional Libyan government (GNA). Athens considers this memorandum illegitimate.
Ankara’s objections forced Greece to postpone the mission of the research vessel chartered by Nexans to enter international waters, resulting in the necessary sounding surveys for the laying of the submarine cable.
The surveys in international waters, between Kassos and Karpathos, were interrupted last July after a 40-hour incident and the presence of five Turkish warships and have not restarted since, with Athens recently appearing restrained in terms of taking on the relevant risk.
Despite repeated assurances from the Greek government that seabed surveys would proceed normally in international waters to prepare for cable laying, these commitments have not materialized, creating a significant obstacle for the ambitious energy project.
Earlier in the week Greece’s foreign minister Giorgos Gerapetritis assured the project to connect the two large east Mediterranean islands – and eventually mainland Greece and the rest of Europe – will continue as planned.
In an interview with Kathimerini, he expressed the hope that Turkey will not object: “I believe and hope that Turkey will not object, that we’ll have an understanding to allow this project to proceed…In case there is tension we will try to defuse it,” he said.
The Greek minister said research and the laying of surface cables is protected under international law and requires no license. He emphasized that there is absolutely no claim, under international law, for the licensing of such a project — officially called the Great Sea Interconnector (GSI).
IPTO invested €200 million in the Cyprus-Crete power connection
IPTO has reportedly invested approximately €200 million in cable construction to date—a substantial portion coming from the EU’s €658 million grant for the project—intensifying concerns about potential financial complications.
Νewmoney.gr reports the payment freeze has been implemented in coordination with Nexans to ensure it “will not cause a suspension of project works.” However, it remains unclear how Nexans will respond to continued payment suspensions, particularly if the situation persists in the coming months.
The Cyprus-Crete electricity interconnection represents a component of the broader EuroAsia Interconnector project designed to end Cyprus’s energy isolation and strengthen regional energy security.
The project has been designated as a Project of Common Interest by the European Union, highlighting its strategic importance for European energy infrastructure.
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