Cyprus faces urgent need for a comprehensive long-term energy strategy

The International Monetary Fund's 2026 Article IV assessment has identified Cyprus's heavy reliance on imported oil and its lack of electricity interconnection as critical vulnerabilities. The Auditor-General describes the inability to implement natural gas infrastructure as a major policy failure over the past decade. It is estimated that the national economy loses approximately €300 million annually due to the continued use of petroleum products and high carbon emission costs. Converting electricity generation to natural gas by 2028 could potentially generate savings of a similar magnitude. Experts emphasize that energy policy in Cyprus has historically been fragmented, treating natural gas, renewables, storage, and desalination as separate issues rather than a unified system. A successful strategy requires a coherent framework that integrates energy security, affordability, and climate goals by 2040. The current isolated and reactive approach is considered insufficient to protect the country from regional market instability and global energy price fluctuations.