Cyprus at the forefront of the energy transition: Minister of Energy presents comprehensive plan for a sustainable energy future

The Eastern Mediterranean can take a leading role in addressing the climate crisis and shaping the new energy landscape in the region, emphasised the Minister of Energy, Commerce and Industry of the Republic of Cyprus, Mr Michael Damianos, in his address at the International Conference on Climate Crisis held in Lefkosia.

The Conference, taking place in the framework of the Cyprus Presidency of the Council of the EU, is co-organised by the Cyprus Institute and the Deputy Ministry of Research, Innovation and Digital Policy of the Republic of Cyprus.

The Minister highlighted the significant challenges facing the region, with particular emphasis on the energy isolation of Cyprus. He noted that Cyprus remains the only EU member state with no electricity interconnection with any other country, which results in some of the highest electricity prices in Europe. At the same time, he noted that 15% of households (50,000 families) face energy poverty, making a just green transition imperative.

Four Pillars of Energy Reform

The Minister of Energy, Commerce and Industry of the Republic of Cyprus presented the Government's strategy, based on four key pillars:

1. Introduction of Natural Gas

• The Republic of Cyprus acquired the FSRU vessel ETYFA Prometheus and completed the necessary conversion works.
• The LNG Import Terminal project at Vasilikos, CyprusGas2EU, is progressing, with the tender expected to be launched within the coming months.
• The introduction of LNG is expected to reduce power generation emissions by 20–30% and lower the cost of EU emissions allowances that currently burden every electricity bill in Cyprus.

2. Strengthening Renewables and Energy Storage

• Battery storage systems with a total capacity exceeding 300 MW are being deployed across multiple sites.
• Projects with an estimated capacity of approximately 1.2 GW and 3.45 GWh are under evaluation.
• Energy storage addresses curtailments in renewable energy production and significantly increases renewable penetration in the grid.
• Renewable energy currently accounts for 14.5% of electricity generation and 21% of final energy consumption.

3. Interconnection with European Networks

• Cyprus is strategically pursuing physical interconnection with the European energy grid, enhancing energy security and reducing isolation.

4. Modernisation of the Energy Market

• On 1 October 2025, Cyprus launched a competitive electricity market aligned with the EU Target Model, improving price signals and facilitating the integration of renewables.
• The rollout of smart meters has already reached 273,000 installations and is expected to reach 700,000 meters by 2026.

2030 Goals and Green Industry

Cyprus is setting ambitious targets, aiming for 33.17% renewable energy by 2030, significant energy savings and the transition to zero-emission buildings. At the same time, the green transition of the industrial sector is being promoted through new policies focused on competitiveness, innovation and the use of green hydrogen, while enterprises are supported through targeted initiatives.

Strengthening International Partnerships and Cyprus' Energy Role

The Minister highlighted the strategic importance of regional cooperation, referring to agreements with Egypt and collaborations with major international energy companies. These initiatives strengthen Cyprus’ position as a reliable energy hub and a factor of stability in the region.

Turning Crisis into Opportunity

In conclusion, Mr Damianos emphasised that despite the challenges, Cyprus is using its energy vulnerability as a catalyst for reforms and investments. Every step taken brings the country closer to a resilient and sustainable energy future. The Eastern Mediterranean, he added, can assume a leadership role in climate action through cooperation and innovation.

Photos

See photos from the event on the Cyprus Presidency's Flickr account.