Israel-Europe Power Cable Project Advances Amid Turkish Maritime Dispute

The Great Sea Interconnector, a significant undersea electricity cable project linking Greece, Cyprus, and potentially Israel, is moving forward after a period of delays. In August, French investment group Meridiam became the controlling stakeholder in the project company. Concurrently, agreements were signed for crucial seabed surveys needed to advance the project, involving the Greek transmission operator IPTO, the project company, and cable manufacturer Nexans.

The Israeli and Cypriot segments of the project also saw progress, with IPTO submitting a formal investment application to regulators in both countries. This step is required by European infrastructure regulations and follows a cost-benefit analysis that deemed the connection economically viable under all scenarios. The project aims to connect Israel's electricity grid to the European network for the first time, enhancing regional energy cooperation.

The project is planned in two phases. The first connects Cyprus to Crete and the European grid, a vital step as Cyprus is the only EU country not currently linked to another member's grid. This segment, spanning 898 km between Crete and Cyprus, has an estimated budget of 1.9 billion euros, with the EU contributing 657 million euros. The second phase involves extending the cable from Cyprus to Israel, a 324 km underwater link.

For Israel, the interconnector represents a shift from being an "energy island" to having a physical connection for importing and exporting electricity. This capability is crucial for managing the integration of renewable energy sources, which have variable output, and for enhancing national resilience by adding a new supply route. The connection could also foster a regional electricity market and, in the long term, serve as a commercial export infrastructure.

However, the project faces a significant hurdle: Turkey's maritime claims in the Eastern Mediterranean. Seabed survey work in an area south of the Greek islands of Kasos and Karpathos, crucial for the Greece-Cyprus segment, led to a confrontation with Turkish vessels in the summer of 2024, halting some operations. While Greece asserts its rights under international law, Turkey claims certain areas require its consent. The resumption of surveys, particularly in the sensitive region between Karpathos and Cyprus, will reveal whether Turkey's opposition remains diplomatic or escalates to maritime interference, potentially stalling the project again.