By Bosphorus News Energy Desk
Republic of Cyprus Energy Minister Michalis Damianos said on October 19 that a planned €25 million payment for the Great Sea Interconnector (GSI) is tied to Greece issuing a navigational warning (NAVTEX) for renewed seabed surveys and to progress on the project. Cyprus's energy regulator has recognized €82 million of the €302 million in expenses claimed by the Greek grid operator.
Speaking after presenting his ministry's 2027 budget to the House Finance Committee, Damianos said he expected the Greek notice before the end of October. He said the government intended to honour the amounts agreed for work that was moving forward.
€302m Claimed, €82m Recognized
Greece's Independent Power Transmission Operator (IPTO, known in Greek as ADMIE) reported €250 million in GSI expenses in August 2025. Its claim has since risen to €302 million. The Cyprus Energy Regulatory Authority (CERA) has held its recognized amount at €82 million, based on documentation submitted by July 21, 2025.
In its July 31, 2025 decision, CERA approved the recovery of €82 million in verified investment expenses, with a €25 million ceiling for 2025. That approval was conditional on IPTO obtaining the required owner and interconnector line-operator licenses. The remaining €220 million in claimed expenses has not received equivalent regulatory recognition; it is not an additional payment approved for Cyprus.
State Funding and Consumer Bills Follow Different Rules
Damianos linked the planned €25 million state-budget payment to a Greek NAVTEX and renewed work on the cable. The regulatory framework allows up to €25 million a year in construction-period cost recovery from 2025 through 2029, capped at €125 million. Regulatory approval of eligible expenses and the government's decision to release funds are separate steps.
Damianos said consumers would begin bearing their share through electricity bills only after the cable delivers power to Cyprus, with the costs spread over 30 years. He also raised the possibility of bringing in investors or seeking financing from the European Investment Bank if construction costs rise. The bank's review is continuing.
Survey Notice Remains in Dispute
The surveys are also caught in a dispute over how Türkiye should be notified. Greece says it can authorize the work without Turkish permission; Ankara wants diplomatic contact from the vessel's flag state before surveys in waters where it claims continental-shelf rights.
Sources: Cyprus Energy Regulatory Authority, Cyprus News Agency, RIK, Cyprus Mail, Politis, Bosphorus News review and reporting.