Progress on the Crete-Cyprus electricity interconnection remains stalled, as yesterday’s videoconference between the two regulators, ADMIE, and the European Commission failed to advance the project. The delays, attributed to unresolved regulatory and financial issues, continue to hinder the project's development.

Two months after the intergovernmental agreement between Greece and Cyprus was signed, minimal progress has been made to instill confidence in the project's positive trajectory. The project still faces regulatory challenges, funding uncertainties, and unresolved seabed surveys in international waters. Additionally, disagreements over shareholder expansion remain unresolved.

According to Greek media, Cyprus maintains "a rigid stance toward Greece, obstructing approval of ADMIE’s expenses." Of the €48 million spent by ADMIE to acquire the project from the previous developer, Euroasia Interconnector, Cyprus recognizes only €12 million. ADMIE has announced in recent teleconferences its intention to escalate the matter to the European Union.

Similarly, the Cyprus Energy Regulatory Authority (CERA) refuses to acknowledge €9 million in operational costs incurred by ADMIE, further complicating the possibility of a unified approach between the two countries. CERA has requested additional clarifications from ADMIE, signaling ongoing difficulties in resolving these differences.

ADMIE has filed appeals with the Council of State in Greece and relevant Cypriot courts to amend the Cross-Border Cost Allocation (CBCA) agreement signed in the summer. The CBCA stipulates that, should the project fail due to ADMIE or its contractor, compensation must be paid for consumer fees and lost profits. ADMIE deems this clause excessive and views it as an additional obstacle to attracting investors.

The delays are expected to feature prominently on the political agenda during today’s visit to Cyprus by Greece’s Minister of Environment and Energy, Theodoros Skylakakis. The minister participated in the Cyprus-Greece Intergovernmental Conference and the Cyprus-Greece-Jordan Trilateral Summit, chaired by the Greek Prime Minister.

Cyprus’ participation in the project remains pending. The Cypriot side recently received a preliminary report from an American company conducting due diligence. The report raises numerous questions, placing significant conditions on finalizing the agreement. ADMIE must address these questions to facilitate the evaluator's final opinion.