Greece’s power grid operator IPTO has temporarily suspended payments to French cable manufacturer Nexans in a significant development for the Cyprus-Crete electricity interconnection project.
The Greek operator reportedly withheld a scheduled payment due on 28 February, as reported today by newmoney.gr, signalling growing concerns about geopolitical obstacles—primarily Turkish objections—that appear more substantial than initially assessed by project planners.
According to the report, “IPTO’s decision not to make the February 28 payment has received political backing from Greece’s Ministry of Environment and Energy.” This development comes amid repeated postponements by the Greek Foreign Ministry regarding the issuance of a NAVTEX notice for seabed research in international waters, fuelling uncertainty that has surrounded the project for months.
The situation “creates risks in case of derailment in the project’s implementation,” the report suggests.
Despite repeated assurances from the Greek government that seabed surveys would proceed normally in international waters to prepare for cable laying, these commitments have not materialised, creating a significant obstacle for the ambitious energy project.
IPTO has reportedly invested approximately €200 million in cable construction to date—a substantial portion coming from the EU’s €658 million grant for the project—intensifying concerns about potential financial complications.
Νewmoney.gr sources indicate the payment freeze has been implemented in coordination with Nexans to ensure it “will not cause a suspension of project works.” However, it remains unclear how Nexans will respond to continued payment suspensions, particularly if the situation persists in coming months.
The Cyprus-Crete electricity interconnection represents a component of the broader EuroAsia Interconnector project designed to end Cyprus’s energy isolation and strengthen regional energy security. The project has been designated as a Project of Common Interest by the European Union, highlighting its strategic importance for European energy infrastructure.
Read more:
