In a keynote address at the Annual General and Electoral Meeting of the Electricity Market Association, significant developments and future plans for Cyprus’s energy sector were highlighted. The meeting, which was warmly welcomed by the Minister of Energy, showcased the government’s commitment to addressing the challenges of isolation and high costs in the sector.
The Minister emphasized the government’s ongoing efforts to transform the energy landscape, aiming to reduce electricity costs for households and businesses while advancing a green transition. Key initiatives include the operation of a competitive electricity market by July 2025, the completion of the liquefied natural gas (LNG) import terminal in Vassiliko, and the enhancement of domestic Renewable Energy Sources (RES).
Significant strides have been made in preparing for the competitive electricity market, with the recent signing of a decree for the transfer of personnel to the newly established DSMC. The recruitment process for additional staff is expected to be completed by October 2024, with the DSMC preparing for the third trial period.
The LNG terminal project, a major priority, aims to boost competition in the electricity market and reduce pollutants. Discussions are ongoing to expedite the interconnection of independent electricity producers with the natural gas network.
The Minister also highlighted the importance of utilizing domestic RES. Enhanced grant schemes for private consumption and the installation of photovoltaic systems have led to a notable increase in self-consumption PV systems. However, challenges such as substation saturation and the need for network upgrades to accommodate further RES penetration are being addressed.
Funding from the Just Transition Fund and the Cyprus Recovery and Resilience Plan is being utilized to modernize and digitize the network. While most projects are on track, the installation of smart meters awaits a court decision. The Ministry is also working on subsidies for energy storage systems and exploring central storage solutions.
The Minister concluded by expressing gratitude for the support from the Electricity Market Association and urging continued cooperation to achieve the goal of affordable and green electricity for all Cypriots by 2025. The transition to a competitive electricity market and a green economy remains a central focus, with new producers and suppliers expected to play a pivotal role in this transformation.
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