Cyprus energy sector prepares for transformation at Electricity Market Association meeting

The Annual General Meeting and Elections of the Electricity Market Association welcomed government representatives and industry leaders to discuss the ambitious goals of Cyprus’ energy transformation. The event, hosted with enthusiasm by the Ministry of Energy, Trade and Industry, highlighted key initiatives to overcome the country’s energy challenges, including isolation and high costs.

Accelerated energy transformation

Cyprus’ energy strategy has been modernized to reduce electricity costs for households and businesses while promoting the country’s green transformation. The strategy includes eliminating energy isolation, increasing the security of energy supply, optimizing the use of natural gas in the exclusive economic zone and ensuring the competitiveness of both the domestic electricity and gas markets.

Key events and initiatives

• Competitive electricity market: Efforts are being intensified to launch a competitive electricity market by July 2025, which will be an important milestone in the development of Cyprus’ energy sector.
• Personnel Transfer and Recruitment: The Ministry has announced the imminent transfer of staff from the Electricity Authority of Cyprus (EAC) to the newly established Deputy Service Market Operator (DSMC), aimed at increasing operational efficiency. Recruitment for 37 positions in the DSMC is nearing completion, which is crucial to strengthen administrative capacity.
• Liquefied Natural Gas Terminal: The priority is to complete the construction of the Vassiliko liquefied natural gas import terminal, which is crucial to increasing market competition and reducing pollution from energy production.
• Integration of renewable energy: Expanded subsidy programs promote the installation of photovoltaic systems, and self-consumption PV capacity will reach 47% by the end of 2023. Challenges such as grid saturation and supply-demand balance are addressed through modernization projects and the promotion of energy storage systems.
• Infrastructure and financing: Significant funding, including €49 million from the Just Transition Fund and €69.3 million from the Cyprus Recovery and Resilience Plan, supports infrastructure modernisation and digitalisation efforts across six key energy projects.
• Hybrid memory initiatives: Plans are underway for hybrid installations combining energy storage systems with renewable energy sources, which are expected to be operational by October 2024 under the revised regulatory framework.

Future perspectives

Ministry officials have expressed optimism that 2025 will mark the full realization of a competitive electricity market, supporting affordability and sustainability. Collaboration with the Electricity Market Association is seen as crucial to achieving these goals, ensuring a smooth transition to a green economy.

In conclusion, the Ministry thanked the Association for its continued support and stressed the importance of collective efforts in implementing Cyprus’ energy agenda. As the country implements these transformational initiatives, stakeholders are poised to usher in a new era of affordable and sustainable electricity for all.

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