Cyprus' Energy Sector at Crossroads Ahead of Presidential Election

The energy sector in Cyprus is at a critical juncture as the country prepares for its next presidential election. The current administration will be inheriting an energy system with high electricity prices, generation adequacy under pressure, and renewable energy curtailment increasing by 83% in 2025.

The problem lies in the lack of a coherent long-term energy strategy, leading to delays, cost escalations, overlaps, and blurred responsibilities. To address this, the next government needs to develop a binding energy plan to 2040, determining generation requirements, retirement of ageing plants, new conventional capacity, renewable capacity, storage requirements, and the roles of natural gas and the Great Sea Interconnector (GSI).

Renewable Energy Sources (RES) curtailment is becoming an economic loss as the benefits of cheap solar electricity do not reach consumers. The solution lies in storage, grid upgrading, digitalisation, better demand management, and a genuinely competitive market.