Cyprus prepares for potential electricity shortages and advances gas infrastructure

Cypriot authorities are implementing a capacity mechanism to address potential electricity shortages forecasted for the period after 2029. This preventive measure, coordinated by the Ministry of Energy and the Cyprus Energy Regulatory Authority (CERA), acts as a safety net if natural gas imports are not established by the end of 2029. The implementation plan is expected to be finalized by the end of 2026, after which it will be submitted to the European Commission for review. This initiative stems from Article 34 of the Electricity Market Regulation Law.

In parallel, the Natural Gas Public Company (DEFA) has launched a tender worth 5.5 million euros to hire a technical consultant for the initial phase of gas pipeline development. The contract covers four years and includes design, licensing support, and management services. The tender deadline is set for December 15, 2026. DEFA’s strategy prioritizes supplying natural gas to electricity production facilities, with plans to expand access to industries, hotels, and households in the future, ensuring the necessary infrastructure exists for future fuel utilization.