French Fund Meridiam Shows Growing Interest in Great Sea Interconnector

The French multinational investment fund Meridiam is actively pursuing entry into the Great Sea Interconnector project, a landmark energy initiative connecting the power grids of Greece, Cyprus, and Israel.

According to OT, the fund engaged in recent discussions regarding the project with Greece’s Minister of Environment and Energy, Theodoros Skylakakis, and the CEO of Greece’s Independent Power Transmission Operator (IPTO/ADMIE), Manos Manousakis.

The Paris-based fund bills itself as a global investor and asset manager specializing in developing, financing and managing long-term public infrastructure projects, and with a portfolio valued at 22 billion USD through a presence in 56 countries.

Meridiam is currently the primary investor behind NeuConnect, the first electricity grid connector between the UK and Germany, a project under construction.

The Great Sea Interconnector project is managed exclusively by ADMIE, through its subsidiary company. The project, a key component of regional energy integration, aims to install a subsea power cable linking Crete in Greece to Cyprus and eventually extending to Israel. The interconnection is expected to cost €2 billion and is projected to be completed by 2029, delivering critical energy security and ending Cyprus’s energy isolation.

The first phase of the project, the undersea cable between Greece and Cyprus, is already underway, with feasibility studies and seabed surveys scheduled for 2025 and construction expected to finish by early 2026.

Having signed a memorandum of cooperation with ADMIE in June, Meridiam is now evaluating a potential equity stake in the Great Sea Interconnector. This step follows the September trilateral summit involving French President Emmanuel Macron, Greek Prime Minister Kyriakos Mitsotakis, and Cypriot President Nikos Christodoulides, underscoring France’s growing interest in the Eastern Mediterranean energy landscape.

The project has attracted attention from other investors, including entities from the United Arab Emirates, Israel, and the United States, reflecting its strategic and economic significance. The interconnection will play a crucial role in diversifying energy routes in the region, particularly amidst ongoing geopolitical tensions in the Middle East.

As Europe seeks to enhance its energy independence and integrate renewable sources, the Great Sea Interconnector is set to become a pivotal piece of the puzzle. Its completion will create a sustainable energy bridge between Europe and the Eastern Mediterranean, facilitating the exchange of electricity, reducing emissions, and fostering regional cooperation.

Cyprus, in particular, stands to benefit significantly. By connecting to Greece’s power grid, the island nation will overcome its energy isolation and gain access to a more reliable and diversified energy supply.