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Cyprus Weighs Undersea Power Link To Lebanon As Grid And Geopolitics Complicate The Case

Cyprus and Lebanon have begun formal discussions on a planned undersea electricity interconnector that could allow Cyprus to export surplus renewable power to Lebanon, former Energy Minister George Papanastasiou said Wednesday.

Cable Could Help Manage Cyprus’ Renewable Power

Cyprus can generate more renewable electricity at peak times than its grid can absorb, forcing temporary curtailment to prevent overload, Papanastasiou told the Cyprus Mail. An export cable could provide an outlet for surplus generation while supplying Lebanon with additional electricity.

Battery storage would remain essential, however, because the cable alone could not stabilize variable renewable generation, Papanastasiou said.

Lebanon’s Grid Presents A Major Challenge

For Lebanon, the interconnector could improve security of supply and provide more stable electricity, provided Cyprus can maintain reliable generation and transmission.

Much of Lebanon’s power infrastructure remains severely damaged, with many areas relying on standalone systems and generators. That raises questions about whether the existing network could efficiently receive and distribute imported electricity.

Feasibility Study Comes First

The immediate priority is a feasibility study, which could be funded by the World Bank, Papanastasiou said. Any agreement would require approval from regulators in both countries, including the Cyprus Energy Regulatory Authority and Lebanon Electricity Regulatory Authority.

The proposed process would begin with a cost-benefit analysis, followed by a cross-border cost-allocation agreement if the project proves viable. Detailed design would come next.

Regional Politics Could Shape The Project

Turkey could also react to the proposed connection, Papanastasiou said, adding that he did not expect any objection to be based on international law.

The discussions follow a July agreement between Cyprus, Lebanon and the World Bank to prepare a preliminary feasibility study. Lebanon also signed a July 2 agreement with Syria aimed at establishing an electricity interconnection.

Cyprus is meanwhile pursuing the Great Sea Interconnector linking the island with Greece and Israel. A separate proposal backed by Turkey and the Turkish Cypriot authorities to connect Cyprus with Turkey is not included in the European Network of Transmission System Operators for Electricity (ENTSO-E) 10-year plan.

The Cyprus-Lebanon project will depend on the feasibility study, regulatory approvals, financing and the wider regional political environment.

Cyprus Business Electricity Prices Rank Among The EU’s Highest

Electricity prices for a defined group of non-household consumers in Cyprus reached €0.23 per kilowatt-hour in the first half of 2026, placing the country among the most expensive in the EU, according to Eurostat.

The rate matched Italy and exceeded the EU average of €0.18. Ireland recorded the highest price at €0.27 per kilowatt-hour.

The figures cover non-household consumers with annual electricity consumption of between 500 and 2,000 megawatt-hours, rather than all businesses or households.

EU Electricity Prices Continued To Fall

Across the EU, average prices for this consumer group declined by 2% compared with the second half of 2025 and were 5.4% lower year on year.

The lowest rates were recorded in Finland (€0.09 per kWh) and Sweden (€0.12), followed by Denmark, Spain and Portugal, all at €0.13.

Prices Fell In Most Member States

Electricity prices declined year on year in 19 EU countries during the first half of 2026. Luxembourg recorded the largest fall, at 23.8%, followed by Czechia (11.9%) and Greece (11.8%).

Prices increased in eight member states, led by Sweden (18.8%), Finland (18.7%) and Bulgaria (14.2%). Despite the sharp increases, Finland and Sweden continued to have the lowest electricity prices in the bloc.

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