MINISTER - ENERGY - THE FUTURE OF CYPRUS ALSO DEPENDS ON THE ELECTRICAL INTERCONNECTION - Filenews 9/4
Nicosia has a comprehensive strategy to transform Cyprus into a sustainable, competitive and interconnected energy market, the Minister of Energy, Trade and Industry, Michalis Damianos, said on Thursday in his speech at the International Conference on Climate Action in the Eastern Mediterranean and the Middle East, held in Nicosia in the framework of the Cyprus Presidency of the Council of the EU.
Every investment made in storage, liquefied natural gas, interconnection, renewable energy, green hydrogen, is a step towards a more resilient, sovereign and sustainable energy future, he said.
Mr. Damianos said that the Eastern Mediterranean and the Middle East are warming at about twice the rate of the global average and that the region is facing intensifying heatwaves, prolonged droughts, reduced availability of fresh water and rising sea levels that threaten coastal populations, critical infrastructure and biodiversity.
"For small island economies like Cyprus, these are not abstract projections – they are realities of the present," he added.
Noting that Cyprus "is the only EU member state that does not have an electricity interconnection with any other country", Damianos said that the island is "almost entirely" dependent on imported liquid fuels for energy production. This isolation, he said, has a direct consequence that Cyprus has one of the highest electricity prices in the European Union, both in nominal terms and in terms of purchasing power parity.
Cyprus' current energy mix "strongly reflects this challenge," he said, noting that fossil fuels account for 85.5% of electricity production – 84% petroleum products and 1.5% solid fuels – while renewables account for 14.5% of electricity generation and 21% of final energy consumption.
Mr. Damianos also mentioned that a significant share of renewable energy produced in Cyprus is currently limited, which corresponds to a "significant loss of clean electricity". "This is the cost of isolation and the clearest possible argument for interconnection, storage and market reform," he said.
The Minister also noted that 15% of Cypriot households – about 50,000 families – are classified as energy poor, unable to cover their energy costs, stating that the green transition "must reach them too", adding that it must be a just transition.
In this context, he added, the Ministry has developed a comprehensive strategy to transform Cyprus into a sustainable, competitive and interconnected energy market.
He said that this is based on four pillars: the introduction of natural gas, the expansion of renewable energy sources and storage, the strategic pursuit of physical interconnection with the European grid and the modernization of Cyprus' energy market.
Mr. Damianos said that the development of regional electricity interconnections in the Eastern Mediterranean and the Middle East "remains a strategic priority" to strengthen stability and energy security in the region. These, he added, will not only allow for the diversification of energy sources and greater stability in supply, which is critical for small and isolated energy systems such as Cyprus, but will also allow countries to export potential surplus electricity from renewable sources.
By increasing the penetration of renewable energy sources and, consequently, reducing carbon emissions, cross-border electricity projects contribute to a more sustainable, resilient and reliable energy system, he pointed out.
"Regional electricity interconnections are a strategic priority for the entire Eastern Mediterranean and Middle East region," he said, adding that shared grids mean shared resilience and the ability to export surplus renewable electricity across borders accelerates decarbonization for all of us.
Mr. Damianos also referred to the updated National Energy and Climate Plan, submitted to the EU in December 2024, which, as he said, commits Cyprus to a 33.17% share of renewable energy sources in gross final energy consumption by 2030, energy savings equivalent to 349,000 tons of oil and a binding annual reduction of 1.9% in public sector energy consumption. From 2030, all new buildings in Cyprus must achieve zero-emission building status, he noted.
At the same time, he said, Cyprus is also promoting its green transition in the industrial sector through a comprehensive and forward-looking industrial policy that integrates decarbonization, advanced technologies and competitiveness. Nicosia is now finalising a new Policy Paper on the Competitiveness and Internationalisation of Cypriot Industry for the period 2026-2030, "placing the green transition at its core", while also completing the National Hydrogen Strategy, which was approved by the Council of Ministers in June 2025, and focuses on green hydrogen from renewable electricity, with a complete regulatory framework expected by 2027, he said.
He also said that his Ministry "actively supports businesses in reducing their carbon footprint by promoting energy efficiency, the integration of renewable energy systems, and the adoption of cleaner generation technologies."
Mr. Damianos also mentioned that Cyprus plays a "central role" in promoting regional energy cooperation in the Eastern Mediterranean and the Middle East, actively contributing to initiatives such as the Eastern Mediterranean Gas Forum and establishing partnerships with key international companies. According to him, the Framework Agreement signed with Egypt on March 30, 2026 covers the development of natural gas plots in the Exclusive Economic Zone of Cyprus, including "Saturn" and "Aphrodite", and establishes a Joint Committee for the negotiations for the sale of natural gas, he said. The Block 6 Agreement with Eni and TotalEnergies aims for first production in 2028, he added, noting that discussions with Israel on "Ishai" "further underline the depth of cross-border cooperation in our region."
"These initiatives diversify energy routes, support economic growth, and strengthen Cyprus' role as a reliable energy hub and pillar of stability in the region," he noted.
Mr. Damianos also said that Cyprus is "committed" to managing its hydrocarbon resources in a manner consistent with its European and climate obligations, using natural gas responsibly, as a transitional fuel, while the transformation of renewable energy sources is escalating.
"As Cyprus holds the EU Presidency, I would also like to note that the European Grids Package – currently before the Council – is one of our top priorities. Our goal is to secure a General Approach at the Energy Council in June 2026, providing a framework that will benefit not only EU member states, but also the broader regional energy architecture," he said.
Cyprus, he said, "knows what energy vulnerability means" but also that adversity can be a catalyst. "Every investment we make – in storage, in liquefied natural gas, in interconnections, in renewable energy, in green hydrogen – is a step towards a more resilient, sovereign and sustainable energy future."
Concluding, he said that the Eastern Mediterranean and the Middle East "can be an area not only of climate vulnerability, but also of climate leadership."
CNA
