Meridiam Takes Over Great Sea Interconnector Cyprus Energy Link
French firm Meridiam has acquired 66% of the Great Sea Interconnector project linking Greece and Cyprus, surprising Cypriot officials who await key approvals and clarity on project oversight.
According to in-cyprus (Philenews), French investment company Meridiam signed a surprise agreement with Greece’s Independent Power Transmission Operator (IPTO) on August 5, securing approximately 66% of Great Sea Interconnector (GSI) shares in a deal witnessed by Greek Prime Minister Kyriakos Mitsotakis. The move effectively transforms what was a Greek-controlled EU grid interconnection project into a French-led undertaking.
The Cypriot government found itself unable to issue an immediate response, citing inadequate briefing from Athens and IPTO. Energy Minister Michalis Damianos and President Nikos Christodoulides were expected to address the development at a Council of Ministers meeting on August 6, with an official position to follow.
Critical Navtex Notice Still Pending
Government sources in Nicosia indicated that Cyprus awaits a crucial Navtex notice from Greece to authorize bathymetric surveys in the sea area where the cable will be installed. Once Greece issues the Navtex, Cyprus will proceed with two payments of €25 million each to IPTO under the terms of the existing intergovernmental agreement.
Athens confirmed that IPTO, Meridiam, and Nexans have signed an agreement covering the bathymetric surveys, but the Greek government has yet to issue the required maritime notice. This remains one of the most critical outstanding items for the project’s advancement.
Questions Mount Over EIB Study and Regulatory Oversight
Neither Greek nor French officials clarified what weight the parties now assign to the European Investment Bank study that Cyprus, Greece, and IPTO had requested to update technical and financial data for the cable. in-cyprus (Philenews) reports that it remains unclear what a negative EIB assessment would mean for Meridiam and whether it could jeopardize loan approval worth hundreds of millions of euros.
The development appears to have surprised nearly everyone in Cyprus, with the likely exception of President Christodoulides, who told journalist Elli Kotziamani during an interview on ANT1 that a development regarding the cable would emerge within the week. That prediction materialized with the French takeover announcement.
IPTO’s New Role and CERA’s Authority
Greek sources indicated that IPTO, previously the project’s implementing body, will now assume the role of chief technical officer. This would position IPTO as technical director for construction, with major decisions now resting with Meridiam as the implementing body and owner.
The reaction of Cyprus Energy Regulatory Authority (CERA) carries considerable significance. CERA granted ownership and management licenses for the electricity interconnection to GSI on September 27, 2025, when IPTO owned 100% of the company. Questions now arise whether CERA was briefed on the French acquisition, whether its approval is required for Meridiam to assume control, and whether the regulatory body will be asked to manage the transition retroactively.
Contractual Commitments Under Scrutiny
A key concern centers on whether Meridiam accepts all existing regulatory decisions and prior commitments made by IPTO, including delivery of the project by 2029 at a cost of €1.9 billion, or whether the French firm will seek modifications similar to those IPTO requested when it replaced EuroAsia Interconnector as implementing body.
Additional uncertainty surrounds whether the contract and timelines binding IPTO and Nexans for cable construction and installation also bind Meridiam, particularly given that parts of those agreements have already been breached by IPTO.
With IPTO retaining a 34% stake in GSI, another question emerges about whether Cyprus might seek to acquire shares in the company itself, though the financial terms of the Meridiam transaction have not been disclosed.
With information from in-cyprus (Philenews)
