Cyprus addresses high electricity costs amid public debate and energy reform

Public debate in Cyprus, spurred by MEP Fidias Panayiotou, has highlighted the country's systemic energy challenges. Despite high solar potential, Cyprus remains dependent on expensive imported fuels, ranking as the 11th most expensive country in the EU for household electricity during the second half of 2025. Technocrats and officials emphasize that simple solutions are insufficient and warn against unrealistic expectations, noting that long-term strategic planning is required to see tangible price reductions.

Former Energy Minister George Papanastasiou pointed to the delayed arrival of natural gas and the need for better integration of Renewable Energy Sources (RES) as critical priorities. He argued that the cost of green energy should reflect production costs rather than being tied to conventional generation prices. Meanwhile, current Energy Minister Michalis Damianou announced plans to install energy storage batteries to improve efficiency. The Transmission System Operator expects to install 120 megawatts of storage capacity by summer 2027, with the Electricity Authority of Cyprus and private investors adding approximately 230 megawatts combined. These infrastructure projects aim to increase solar usage and reduce reliance on expensive, polluting heavy oil, representing a significant step toward lowering consumer bills in the coming years.