How does the GREGY interconnector differ from the Great Sea Interconnector?

While both are massive Mediterranean HVDC projects, GREGY connects Egypt directly to Greece to export North African solar and wind energy. The Great Sea Interconnector specifically aims to connect the grids of Israel, Cyprus, and Greece, primarily to end Cyprus's energy isolation and allow bi-directional flows between the Levant and Europe.

Why is Hitachi Energy's involvement considered a major milestone for the project?

Hitachi Energy is a global leader in HVDC technology, which is highly specialized and has a constrained supply chain. Securing a €770 million supply agreement ensures the project has the necessary technological backing and manufacturing capacity, which are major bottlenecks for ultra-deepwater cable projects globally.

What are the main geopolitical challenges facing this subsea cable route?

The cable must traverse maritime zones in the Eastern Mediterranean that are subject to overlapping claims and geopolitical tensions, particularly between Greece, Turkey, and Libya. Securing transit rights and ensuring physical security of the infrastructure in these contested waters remains a complex diplomatic challenge.

Offshore Energy · June 25, 2026 (Jun 25) · 1 min read

Hitachi Energy wins €770M contract for first Europe-Africa interconnector

Analysis

AI-assisted analysis · reviewed by Yuri Kan

Hitachi Energy's €770 million contract win for the Greece-Egypt subsea power cable marks a watershed moment for Mediterranean energy integration, establishing the first high-voltage direct current (HVDC) link between Europe and Africa. This project fundamentally shifts the regional dynamics by allowing Europe to tap into North Africa's massive solar and wind potential, accelerating the EU's decarbonization efforts. For the Eastern Mediterranean, this infrastructure establishes a concrete precedent for deep-water, cross-continental electricity transmission.

Key Facts

Hitachi Energy has been awarded a major contract valued at approximately €770 million to supply the high-voltage direct current (HVDC) technology for the GREGY interconnector.
The project represents the first direct electricity link between Europe and Africa, connecting the Egyptian grid directly to mainland Greece.
The subsea cable system is designed to transmit up to 3,000 megawatts (MW) of clean energy across the Mediterranean Sea.
The total length of the subsea cable route is estimated to be around 950 kilometers, traversing extremely deep waters in the Mediterranean basin.
The project developer, Elica Mediterranean Interconnector (a member of the Copelouzos Group), aims to transport renewable energy generated primarily from wind and solar farms in Egypt.

Background & Context

For over a decade, North Africa and the Southern Mediterranean have been viewed as prime candidates for exporting abundant solar and wind energy to power-hungry European markets. Previous ambitious initiatives, such as the Desertec project, failed to materialize due to political instability, high capital costs, and technological limitations of the time. However, the European Union's urgent drive to diversify away from Russian fossil fuels, combined with rapid advancements in deep-water HVDC cable technology, has revived and accelerated these cross-continental interconnector projects.

Market Impact

This contract award significantly de-risks the GREGY project, signaling to international debt markets that the interconnector is moving from concept to execution. For European utilities, the influx of 3 GW of cheap Egyptian renewable power will help stabilize grids and lower wholesale electricity prices, though it will require substantial upgrades to Greece's domestic transmission network. For Egypt, the project secures a lucrative export market for its massive renewable energy buildout, positioning Cairo as a central energy hub for the Levant and Southern Europe.

What to Watch

Following this technology award, the next critical milestones to watch are the finalization of the project's environmental impact assessments and the securing of the remaining project financing, including potential EU funding. Marine surveys along the designated Mediterranean route are expected to intensify, with laying operations projected to begin in the latter half of the decade. Analysts should also monitor how this project coordinates with overlapping maritime boundary claims in the Aegean and Eastern Mediterranean.

Why This Matters for Cyprus

While GREGY is a distinct project, its successful execution directly validates the technical and economic viability of the Great Sea Interconnector (formerly EuroAsia Interconnector), which aims to link Israel, Cyprus, and Greece. The deployment of Hitachi's deep-water HVDC technology in the same maritime neighborhood proves that the extreme depths of the Levantine Basin can be conquered, boosting investor confidence in Cyprus's own plans to end its electricity isolation.

Frequently Asked Questions

How does the GREGY interconnector differ from the Great Sea Interconnector?: While both are massive Mediterranean HVDC projects, GREGY connects Egypt directly to Greece to export North African solar and wind energy. The Great Sea Interconnector specifically aims to connect the grids of Israel, Cyprus, and Greece, primarily to end Cyprus's energy isolation and allow bi-directional flows between the Levant and Europe.
Why is Hitachi Energy's involvement considered a major milestone for the project?: Hitachi Energy is a global leader in HVDC technology, which is highly specialized and has a constrained supply chain. Securing a €770 million supply agreement ensures the project has the necessary technological backing and manufacturing capacity, which are major bottlenecks for ultra-deepwater cable projects globally.
What are the main geopolitical challenges facing this subsea cable route?: The cable must traverse maritime zones in the Eastern Mediterranean that are subject to overlapping claims and geopolitical tensions, particularly between Greece, Turkey, and Libya. Securing transit rights and ensuring physical security of the infrastructure in these contested waters remains a complex diplomatic challenge.

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