[5][2] Connecting Kofinou, Cyprus to Hadera, Israel and Korakias, Crete, Greece, the EuroAsia Interconnector is a major Project of Common Interest (PCI) of the European Union and a priority Electricity Highway Interconnector Project[6][7][8][9][10][11] as an energy highway bridging Asia and Europe.

[12] On December 12, 2017 transmission system operator Elia announced the conclusion of a strategic alliance agreement for the development and implementation of the 2,000 MW interconnector.

[18] [19] [20][21] On 26 January 2022, the European Commission approved €657 million under the Connecting Europe Facility (CEF) for EuroAsia Interconnector.

[22] The inauguration ceremony on the start of the construction works of Interconnector held on October 14, 2022, at the Presidential Palace in Nicosia.

As a result of high import cost of petroleum products the price of electricity is one of the highest in the European Union.

The EuroAsia Interconnector will connect Cyprus to the European electricity grid as the last EU member fully isolated from energy interconnections.

[29] The EuroAsia Interconnector is planned to link up with both Israel and its settlements in the West Bank,[30] and has led to Siemens, which has been announced as the preferred bidder for part of the system,[31] becoming a target of the Boycott, Divestment and Sanctions movement.

The seafloor of the Eastern Mediterranean Basin is dotted with mud volcanoes which spew gas and occasionally oil into the benthic zone.

These geological and oceanographic facts led to speculation that Levantine sea contains large gas and oil deposits trapped in evaporites.

Offshore Tamar gas field of 280 billion cubic metres (9.9×10^12 cu ft) was discovered in 2009, with commercial production starting in 2013.

Converter stations are bipolar and could run bi-directionally enabling import or export of electricity depending on demand.

[45] Main criteria for Projects of Common Interest include market integration, security of energy supply, enhancing competition and reduction of CO2.

On 17 February 2017, European Commission approved €14.5 million as financial support for final detailed studies prior to Project Implementation.

[48] European Network of Transmission System Operators for Electricity (ENTSO-E) assessed positively the Interconnector project based on cost-benefit analysis methodology.

Electricity interconnection will enable and unlock integration of a high percentage of renewable sources in such isolated systems.

The EuroAsia Interconnector project was announced by Nasos Ktorides in Nicosia on 23 January 2012, stressing the role of Cyprus as energy bridge between Europe and Asia.

[54] A cooperation agreement for conducting the feasibility study was signed in Jerusalem on 4 March 2012 between the project operator EuroAsia Interconnector Ltd.(previously DEI Quantum Energy), and the Israel Electric Corporation in the presence of Israeli minister for Energy and Water Resources Uzi Landau and Yiftah Ron-Tal, Director of the Israel Electric Corporation.

With Israel and Cyprus both having located natural gas deposits within their territories, a higher capacity cable would allow them to construct gas-driven power plants and export significant amounts of electricity to Europe.

[58] On 11 January 2016 in Nicosia Vice-President of the European Commission Maroš Šefčovič met with President of Cyprus Nicos Anastasiades and Minister of Energy Giorgos Lakkotrypis.

In January 2016, the Italian research ship Odin Finder started a reconnaissance study for the optimum route of the underwater cable.

[63] On 17 February 2017 The European Commission approved €14.5 million as financial support for final detailed studies prior to Project Implementation.

[64] On May 12, 2017, the Greek Prime Minister Alexis Tsipras met State Grid Corporation of China Chairman Shu Yinbiao in Beijing accompanied by EuroAsia Interconnector CEO Nasos Ktorides and had discussions on jointly promoting of the Belt and Road Initiative and the strengthening of power and energy cooperation.

The EuroAsia Interconnector cross-border cost allocation was approved by the Energy Regulatory Authorities of Cyprus and Greece on 10 October 2017 and 21 March 2018.

[68][69][70] On 11 September 2018, Dr. Kasoulides received the highest decoration awarded by France – Officer of the Order of the Legion of Honour.

[73][74][75][76] Prime Ministers of Greece Alexis Tsipras, Israel Benjamin Netanyahu and the President of Cyprus Nicos Anastasiades reconfirmed their support to the timely implementation of the EuroAsia Interconnector.

Following this disagreement IPTO created a subsidiary with name Ariadne Interconnector responsible for the development of the Greek link to Crete.

[78] A call for four tenders with estimated budget €3.27 billion was published on 17 April 2018 in the Official Journal of the European Union.

[83][84] On 6 June 2019, Giorgos Lakkotropis, the Minister of Energy, signed on behalf of the Cyprus government a 33-year land concession agreement for construction of HVDC converter station.

[22] The inauguration ceremony on the start of the construction works of Interconnector held on 14 October 2022 at the Presidential Palace in Nicosia.

[23] Subsea cables for EuroAsia Interconnector will be produced by Nexans, who won a contract worth 1.43 billion euros, signed on 19 July 2023.