The European Union’s plan to connect Cyprus to the bloc’s electricity grid is facing renewed delays as geopolitical tensions with Turkey and uncertainty over funding threaten the future of the nearly €1.9 billion Great Sea Interconnector.

The planned 1,200-kilometre subsea cable would link the electricity networks of Greece, Cyprus and Israel and end Cyprus’s position as the EU’s only member state without an electricity connection to the wider European grid.

The European Commission has committed €657 million to the project and considers it strategically important for improving energy security and supporting the expansion of renewable power. The cable could also help Cyprus reduce electricity costs by allowing access to wider European power markets.

However, construction has been repeatedly delayed. The project was originally expected to become operational in 2024.

A major obstacle is Turkey’s opposition to parts of the proposed route. Ankara disputes Greek and Cypriot maritime claims in the eastern Mediterranean, including areas around Crete and Kasos where survey work for the cable is planned.

In 2024, Greek authorities delayed parts of an offshore survey after Turkish naval vessels were deployed near areas where survey ships were expected to operate. The episode highlighted the security risks facing infrastructure projects in disputed waters.

Klaus Dodds, professor of geopolitics at Middlesex University London, said Turkey views the cable as challenging maritime claims held by Greece and Cyprus. He said the project also reflects closer cooperation between Greece, Cyprus and Israel, a combination Ankara views with suspicion.

Turkey has promoted its own vision for regional energy connectivity and could favour a separate electricity link between its territory and northern Cyprus, which is recognised internationally only by Turkey.

The European Commission has maintained its support for the Great Sea Interconnector and said it has a strategic interest in stability in the eastern Mediterranean.

Funding is another major challenge. Greece and Cyprus have struggled to agree on how the project should be financed and how costs should be recovered from consumers.

Under the latest proposal, Cyprus would cover about 63 percent of the cost, or roughly €786 million, while Greece would contribute around €460 million.

Greece argues that Cyprus, as the main beneficiary and the EU’s last isolated electricity market, should carry a larger share. Cyprus has sought assurances that households will not face excessive costs before the project begins generating benefits.

Athens and Nicosia asked the European Investment Bank in April to assess the project’s viability and updated cost estimates. Additional funding or investors could be required if the original budget has increased.

The EIB said discussions remain ongoing and that any financing request would be assessed under its normal procedures.

The project is therefore caught between geopolitical disputes and financial uncertainty. Without progress on maritime arrangements and a clearer financing structure, the cable intended to strengthen Europe’s energy network risks remaining stalled for years.