Cyprus energy grid faces critical supply shortages and long-term instability

On July 31, 2026, the Parliamentary Committee on Energy held an emergency session to address recent power outages and the precarious state of electricity supply in Cyprus. Participants, including Energy Minister Michalis Damianos, the Transmission System Operator, and unions, discussed the vulnerability of the grid, which remains at a tipping point particularly during evening hours when renewable energy contribution drops.

The energy sector faces a projected loss of 50% of its conventional generation capacity by 2030, amounting to approximately 750 MW. This is linked to the mandatory retirement of nine aging power units at Dhekelia and Vasiliko, some of which are up to 45 years old. Officials highlighted that the failure to bring natural gas to the island in 2022 has severely hindered energy planning, forcing the use of reserve units to meet daily demand.

Minister Damianos assured lawmakers that short-term stability is managed through over 1000 MW of conventional production. However, energy storage batteries are not expected to be operational until January 2027, with broader capacity solutions anticipated for summer 2027. Experts warned that if the natural gas project and the electrical interconnection are not completed by 2030, the country faces systemic energy risks.