Cyprus will launch its competitive electricity market on 1 October 2025, marking a significant milestone in the Mediterranean island’s energy transition with approximately 327 megawatts of renewable energy capacity available for trading.
The new market represents a major development in Cyprus’s energy sector, though results from these regulatory changes will not be immediately visible to consumers.
Private sector invests over 800 million euros in renewable energy
Angela Androu, Vice President of the Electricity Market Association, told the organisation’s General Assembly that the private sector has invested over 800 million euros in renewable energy projects.
Total renewable energy production capacity in Cyprus now reaches up to 1,075 megawatts potentially, according to Androu’s presentation.
The 327-megawatt figure available for the competitive market represents approximately one-third of average energy demand after excluding household photovoltaic systems and existing private producers already contracted with the Electricity Authority of Cyprus.
Fourteen applicants nearly complete market entry procedures
Dr Konstantinos Varnava, Market Operations Director at Cyprus Transmission System Operator, revealed that 14 applicants are close to completing procedures to join the competitive electricity market.
“Fourteen applicants, some with multiple capacities, have almost completed integration procedures and are at an advanced stage to complete their actions with the Cyprus Stock Exchange, the Clearing Body, pay necessary guarantees and open bank accounts for transactions,” Varnava said at Tuesday’s Annual General Assembly.
The completion of these procedures is expected within days, with eight applicants set to operate as suppliers, five as renewable energy aggregation representatives, two as producers, and three as renewable energy producers.
Actual renewable energy supply expected lower than capacity initially
Despite the 327-megawatt capacity designation, estimates for actual renewable energy supply to the competitive market are set considerably lower, at least during initial stages.
The new market structure excludes approximately 300 megawatts from household photovoltaic systems and private producers already offering green energy through existing contracts with state utility companies.
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