Legislative changes for renewables and European Commission infringement proceedings against Cyprus

On May 8, 2026, Cyprus enacted Law 114(I)/2026, which introduces strict restrictions on commercial renewable energy projects, specifically banning installations on fertile or irrigated agricultural land. Currently, 145 applications are under review by the Department of Town Planning and local authorities, with projects on prohibited land facing automatic rejection regardless of prior environmental approvals. Simultaneously, the European Commission has issued a supplementary reasoned opinion against Cyprus for failing to fully integrate the 2023 EU Directive on renewable energy licensing acceleration into national law. This directive, which should have been implemented by July 1, 2024, mandates simplified licensing and the classification of renewable projects as being of overriding public interest. Previous warning letters were sent in September 2024 and February 2025. Additionally, the European Commission has initiated infringement proceedings against Cyprus and 12 other EU members for failing to establish national penalty regimes for the ReFuelEU Aviation regulation. Member states were required to adopt these sanction rules by December 31, 2024, to support the transition to sustainable aviation fuels.