Energy giants have shown interest in operating in more blocks within the Republic of Cyprus’s Exclusive Economic Zone, President Nikos Christodoulides said, describing the development as one expected to enhance the country’s international image, attract investment and strengthen regional cooperation.
Speaking at the 13th Energy Symposium organised by Financial Media Way in Nicosia, President Christodoulides announced he will travel to Lebanon on 26 November for talks directly related to the Republic of Cyprus’s energy plans.
He stressed that in a period of geopolitical realignments, the government’s strategy focuses on two main objectives: ensuring adequacy in the electricity system and securing affordable electricity prices for households and businesses.
Three-pillar energy strategy
To achieve these objectives, the energy strategy is based on three pillars, he said: increased penetration of renewable energy sources in the energy mix, exploitation of deposits within the Cypriot EEZ, and energy interconnections.
The president noted that whilst renewable energy penetration is increasing, it remains at 23%, a percentage he characterised as unsatisfactory. He recalled that the first discovery in Cyprus’s EEZ was made in 2011 but has yet to be exploited. He emphasised that Cyprus prioritises energy interconnection projects as an energy-isolated island.
The president reiterated that the goal is green transition with social justice and economic logic, utilising confirmed natural gas deposits, Cyprus’s renewable energy potential, its investment environment and strategic geographical position.
Renewable energy initiatives
He referred to a tax reform promoting incentives for green investments, as well as the pilot implementation of the Solar Panels for All scheme, which received 8,500 applications, of which 4,000 have already been completed.
Additionally, Tillyria is developing into the first energy community, whilst from 2026 this model is expected to be implemented throughout Cyprus.
He said that the competitive electricity market became operational on 2 October, offering consumers a real choice of supplier and driving down electricity costs.
Projects funded through the Just Transition Fund worth €114 million concern upgrading and automating transmission and distribution networks.
The president also announced a grants scheme for energy storage systems, aimed at maximising green production and reducing costs. Through a holistic approach, Cyprus is working to acquire a modern, integrated energy system capable of supporting innovation and security for the coming decades, he said.
Natural gas developments
Regarding the second pillar of the strategy, he highlighted the discovery of the Pegasus deposit in block 10, with an estimated reserve of 20 trillion cubic feet of natural gas. Plans for Aphrodite and Kronos are progressing, with the first natural gas export from Kronos targeted for 2027, according to licensees.
He also emphasised that Cyprus can serve as an alternative energy corridor for Europe, particularly at a time when the EU remains energy-dependent on third countries, even following the war in Ukraine.
Cyprus’s participation in the 3+1 format with Greece, Israel and the United States confirms that the country is part of the solutions for energy security in the Eastern Mediterranean, he said.
Interconnection updates
Regarding the third pillar of interconnections, the president announced the government’s intention to update the economic and technical data of the electricity interconnection project with Europe and with neighbouring states, within the framework of the strategic energy integration strategy.
He concluded that energy transition requires consistency, cooperation and realism, noting that despite challenges, Cyprus is determined to proceed step by step with vision and strategy to ensure adequacy and reduce electricity costs, an objective he characterised as a major challenge for the country.