Admie rejects blackmail claims in power cable funding row

Greece’s power grid operator on Thursday pushed back against mounting criticism over its demand that Cyprus cover part of the costs for the undersea electricity interconnection project linking Cyprus, Greece, and Israel.

The independent power transmission operator (Admie) insisted that Cyprus’ delay in honouring its obligations under a bilateral agreement threatens to derail the entire project, which has already faced geopolitical obstacles from Turkey.

“Claims of blackmail by Admie towards Cyprus are completely unfounded and only serve to create false impressions,” the operator said in a statement.

“These false impressions undermine public trust in Cyprus regarding a project with vast economic and geopolitical benefits for the island,” it added.

Admie confirmed it had already invested more than €250 million in the project, and said it is simply seeking to “recover legitimate expenses incurred so far”, including feasibility studies and part of the cable construction.

“The request by Admie to the regulatory authorities of Cyprus and Greece is fully justified and provided for in the intergovernmental agreement signed last September to promote the project’s construction,” the operator said.

Greece’s energy regulator, RAAEY, has already approved the immediate recovery of Admie’s verified costs from Greek consumers.

Admie has now requested the same from Cyprus’ regulator, Cera, which has yet to issue a decision despite Cyprus president Nikos Christodoulides’ recent assurances that Cyprus would honour its funding commitments.

“The decisions taken by the Cypriot government concern a specific amount, let me remind you, it was 25 million for a five-year period, without, I want to clarify this because it is very important, burdening the Cypriot consumer,” Christodoulides said on Tuesday.

“That will stand,” the Cypriot president added.

Admie, however, disputes Cyprus’ interpretation of the agreement’s timeline and insists there is no clause in the agreement specifying that the first €25 million payment is due only in January 2026.

“It is therefore obvious that Admie is not asking for anything more than compliance with the intergovernmental agreement so that the interconnection project can proceed,” the operator said.

It warned that the current uncertainty around Cyprus’ payment obligations is making it harder to secure financing and attract new shareholders.

“Payment by Cyprus and Greece of Admie’s incurred expenses so far will allow for easier borrowing, while also enabling the attraction of new stakeholders,” it said.

“Strong investment interest has already been expressed by organisations and companies outside Greece,” Admie revealed.

“But when they realise revenue is not secured, they back away,” the operator said.

“If Cera and Cyprus as a whole now refuse to contribute their share of the costs, then a major energy infrastructure project risks being thrown into the dustbin,” Admie warned.

This would bring “enormous economic consequences for Cyprus and its consumers,” the operator said .

Moreover, Admie urged Cyprus and Greece to remain focused on addressing the geopolitical challenges posed by Turkey, which continues to block seabed surveys, and to “continue financially supporting the project.”

“Only in this way will the two governments be able to pursue their diplomatic efforts to prevent Turkey’s reactions and implement the interconnection project,” the operator said.

Smooth financial support from both countries “according to what was agreed will also encourage the European Union, which is financing the project with €658 million, to exert greater pressure on Turkey,” Admie stated.

The project, the operator continued, “is crucial to ending Cyprus’ energy isolation“.

“It will connect the island to the EU’s electricity grid and significantly reduce electricity costs,” it said.

“But for the overall plan to move forward, the participating countries must meet their obligations and financially support the project so that all conditions for construction are fulfilled,” Admie said.

“Only in this way can we continue the effort to overcome Turkey’s irrational and baseless objections to the cable installation,” the operator added.

Admie also stated that “Cyprus and Greece face a serious challenge”.

“Either they will fully support a project of immense national and economic importance, or they will abandon it for pretextual reasons, with all the adverse consequences this will bring to both countries,” it stressed.

“The ball is in their court. The hourglass is already emptying,” the operator concluded.