The agreement for French investment group Meridiam to become the majority shareholder in Great Sea Interconnector (GSI) marks a significant development for the electricity interconnection project between Greece and Cyprus. According to government sources, Meridiam’s participation strengthens both the conditions and the credibility needed to accelerate the project’s implementation.

The sources noted that GSI was established from the outset as the special purpose vehicle (SPV) responsible for developing and delivering the project, with the participation of strategic investors.

The agreement with Meridiam puts that original plan into effect and, following the successful share capital increase by the Independent Power Transmission Operator (IPTO), further strengthens the project’s financial capacity, the sources said.

IPTO will remain a strategic shareholder and key partner, retaining statutory minority rights. It will continue to provide the project’s technical leadership and will be responsible for operating the interconnection once it is completed. Meridiam’s majority stake is expected to strengthen the project’s capital base, contribute international expertise and enhance its implementation capacity.

Government sources described the agreement as a strong vote of confidence in Greece’s energy sector and in IPTO as the project’s implementing body. The deal also includes a strategic agreement between IPTO, GSI, and Nexans, where all three will collaborate from the beginning to speed up construction, focusing first on completing the surveys of the seabed offshore.

Meridiam is a leading international infrastructure investor, developer and asset manager headquartered in Paris, with a strong presence across Europe, the United States and Africa. The company specialises in strategically important public infrastructure projects, which it develops, finances, delivers and manages with a long-term investment horizon, working closely with governments, regulators and public authorities. Its portfolio includes some of Europe’s largest infrastructure projects, among them the electricity interconnector linking the United Kingdom and Germany, one of the continent’s largest cross-border energy projects.

“Through this agreement, we are effectively joining forces and strengthening the delivery of the project,” the same sources added.

As Greece’s electricity transmission system operator, IPTO has continued to invest steadily in the country’s electricity network, having completed the landmark Crete-Attica electricity interconnection, which has been in operation since 2025.

The energisation of the Santorini interconnection is currently under way, while the interconnections of Milos, Serifos and Folegandros are due to be completed during 2026.

At the same time, tender procedures are progressing for the electricity interconnections linking the Dodecanese and the North Aegean islands to the mainland grid, as well as for the new Greece-Italy electricity interconnection.

According to the government sources, Meridiam’s participation in the share capital of IPTO subsidiary GSI significantly strengthens the project by bringing international expertise and strong investment credibility. This supports the company’s strategic objective of connecting Cyprus to the European electricity system through Greece while enhancing the energy security and resilience of both countries.

The agreement is also expected to serve as a catalyst for resolving the project’s outstanding regulatory issues and to support its long-term financing by the banking sector, strengthening the security and stability of its financing structure, the sources underlined. They added that the process for securing financing approval from the European Investment Bank (EIB) is also under way.

At the same time, work is advancing on the Cyprus-Israel electricity interconnection. IPTO, as the implementing body, has completed the project’s cost-benefit analysis and will submit it to the regulatory authorities in Cyprus and Israel in the coming days, marking an important milestone in the project’s development.

“Through these investments and agreements, Greece is strengthening its role as a strategic energy hub linking the electricity systems of the Eastern Mediterranean with the European electricity market,” the government sources said.