French Meridiam takes 66% of Greece-Cyprus interconnector in deal signed at Maximos Mansion

Agreement signed in Athens

On August 5, 2026, an agreement was signed at the Maximos Mansion in Athens, in the presence of Prime Minister Kyriakos Mitsotakis, for French investment group Meridiam to enter the Great Sea Interconnector (GSI) as majority shareholder. Meridiam acquires 66% of the special-purpose vehicle developing the Greece-Cyprus electrical interconnection, while ADMHE, Greece's power transmission operator, retains the remaining 34%. Previously, 75% of the project was held by Greek interests. The total project budget is approximately 1.9 billion euros. The exact price Meridiam paid for the 66% stake has not been disclosed.

Mitsotakis described the agreement as a strong vote of confidence in Greece's energy sector.

The entry of French Meridiam is a strong vote of confidence in Greece's energy sector. We are joining forces in a European project of common interest.

French footprint and Macron's role

The groundwork for the deal was laid during French President Emmanuel Macron's visit to Athens in April 2026, when Meridiam's CEO joined a French business delegation and initial contacts were made with the Greek side. Subsequent discussions involved both governments, with Energy Minister Stavros Papastavrou playing a central role. The French government has backed the agreement, with Meridiam's CEO stating that Macron supports the project and calls him about it daily.

The French presence in the project extends beyond Meridiam. Nexans, also a French company, is contracted to manufacture the submarine cable. A strategic agreement was also signed between ADMHE, GSI, and Nexans to accelerate work, with priority on completing seabed surveys. Meridiam's portfolio includes the UK-Germany electrical interconnector, a 2.8 billion euro project of comparable technical difficulty, according to Papastavrou.

Project specifications and funding

The Great Sea Interconnector involves a submarine cable approximately 900 kilometres long, with an initial transfer capacity of 1,000 MW and the prospect of increasing to 2,000 MW. The project has been designated an EU Project of Common Interest (PCI), which secures funding and European political support. EU funding includes 657 million euros through the Connecting Europe Facility and an additional 100 million euros from the Recovery and Resilience Facility. Approval of financing from the European Investment Bank is in progress. In April 2026, Papastavrou and his Cypriot counterpart Michail Damianos sent a joint letter to the EIB requesting GSI financing, following a decision by Mitsotakis and Cypriot President Nikos Christodoulides to update the project's economic and technical parameters.

Geopolitical obstacles and next steps

The project has faced significant delays over the past two years due to regulatory challenges in Cyprus and geopolitical tensions. Sea surveys for the interconnection were effectively frozen in international waters south of Kasos after Turkish intervention, despite assessments from Greek foreign and defence ministries that Turkey would not react to surveys on the water column. That assessment proved wrong when Turkey responded by sending ships. The goal is now to restart surveys in September.

Papastavrou acknowledged the difficulties while expressing optimism about the new dynamic created by the agreement.

Nobody said that all these problems are solved by magic in one day. One thing is certain, the creation of this new strong dynamic certainly helps all these difficulties to be addressed in a much better way.

A cost-benefit study for the Cyprus-Israel segment is expected to be completed in the coming days and submitted to the regulatory authorities of both countries. The interconnection aims to end Cyprus's energy isolation and strengthen energy security in the eastern Mediterranean. The Greece-Cyprus agreement of September 2024 had envisioned Nicosia joining the project, subject to necessary economic and regulatory parameters being secured.