Filenews 18 February 2026 - by Angelos Nikolaou
Cyprus is facing one of the most critical turning points in its modern water history. With reserves in dams reaching a marginal 17.6% and demand galloping at a rate of 4% – 6% per year, the country is preparing for the possibility of a fourth consecutive year of drought, despite the latest rainfall.
The decentralization of water production is now at the heart of the survival strategy, with the Government showing the way of private desalination in the hotel sector to meet the needs in a difficult summer.
Despite the recent rainfall, the picture remains bleak. The first three months of the current hydrological year were recorded as the worst in decades. Equalizing the water balance is becoming more and more difficult. The prolonged drought has rendered drilling unreliable, driving consumers en masse towards government systems. The extension of the tourist season and high temperatures are pushing the system to its limits. Outdated networks continue to be the open wound of water security.
The state's response comes through 28 actions and €200 million. The Minister of Agriculture, Rural Development and Environment, Maria Panagiotou, during an information day on the licensing of private desalination plants in hotels, clarified that central aid is no longer sufficient on its own. As he noted, at the request of many hotel units, it was deemed necessary to present the plan on a broader basis, in order to answer questions, record suggestions, but also to identify possible points that may create difficulties or delays.
The state is proceeding with seven new mobile desalination plants with a production increase of 32% or 77,000 cubic meters/day. At the same time, the design of two new permanent units with a total investment of €200 million is progressing. for infrastructure and drastic reduction of losses.
The great innovation of the period 2025 – 2026 is the €3 million Grant Scheme for the installation of small private desalination plants in hotels.
The main elements of the Scheme are the subsidy of up to €300,000 per business (de minimis aid) for units with a capacity of up to 1,500 cubic meters per day.
