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Cyprus On The Brink Of EU Court Action Over Failure To Implement Renewable Energy Laws

Cyprus is on the verge of facing legal action from the European Union for failing to implement new regulations aimed at speeding up the approval process for renewable energy projects. On Wednesday, the European Commission issued a reasoned opinion to Cyprus and seven other EU member states, marking the second stage in the Commission’s five-step procedure for dealing with non-compliance.

Eight EU Countries At Risk Of EU Court Referral

The Commission’s decision follows the failure of these countries to transpose the EU laws into their national legislation. Alongside Cyprus, the other nations facing action include Bulgaria, France, Italy, the Netherlands, Spain, Slovakia, and Sweden. These laws are designed to simplify and expedite the permit process for renewable energy and infrastructure projects, which are essential for integrating additional capacity into the electricity grid.

The Commission has emphasized that these laws set clear deadlines for granting permits, with a presumption that renewable energy projects and their associated infrastructure are of “overriding public interest.”

New Accelerated Procedures For Renewable Projects

One of the most significant provisions is the creation of renewable energy acceleration zones, where projects can benefit from shorter approval timelines due to their minimal environmental impact. These rules were intended to be implemented across all 27 EU member states by July 2024, but only 18 countries have complied so far, with the eight aforementioned nations lagging.

Pressure Builds On Cyprus And Other Holdouts

The Commission is now giving these eight countries two months to respond and take the necessary actions. If they fail to do so, the Commission could refer them to the European Court of Justice, a step that could result in significant fines.

This latest development comes shortly after Cyprus received several letters of formal notice from the Commission on various environmental issues, including directives related to air pollutants and hazardous substances in electrical equipment.

Cyprus Remains Among EU’s Lowest Renewable Electricity Producers

Cyprus remained among the European Union’s weakest performers in renewable energy adoption in 2025, with renewables accounting for 27.5% of gross electricity consumption, according to new data published by Eurostat.

Across the EU, renewable sources supplied 49.9% of gross electricity consumption last year, bringing the bloc close to generating half of its electricity from renewable energy.

Cyprus Remains Among The EU’s Lowest Performers

Cyprus ranked among the EU countries with the lowest share of renewable electricity, ahead of only Malta at 11.2%, the Czech Republic at 19.2%, Luxembourg at 23.3% and Slovakia at 24.1%.

Across the country’s broader energy system, renewables accounted for 21.5% of gross final energy consumption in 2025.

EU Renewable Electricity Continues To Grow

Renewables supplied 49.9% of gross electricity consumption across the EU in 2025, up from 47.5% a year earlier. Since Eurostat began collecting comparable data in 2004, the share has risen from 15.9%.

Austria recorded the highest share at 90.8%, followed by Sweden at 89.2%. Denmark generated 77.7% of its electricity from renewable sources, followed by Portugal at 65.6%, Greece at 60.9% and Spain at 60.7%.

Overall Energy Transition Still Has Work Ahead

Renewables accounted for 26.2% of the EU’s gross final energy consumption in 2025, up from 25.2% in 2024 and 9.6% in 2004.

Despite the increase, the bloc remains below its legally binding target of 42.5% by 2030. According to Eurostat, achieving that goal will require an average annual increase of 3.3 percentage points between 2026 and 2030.

Sweden recorded the highest overall renewable energy share at 65.4%, followed by Finland at 53% and Denmark at 48.2%. Belgium recorded the lowest share at 14.9%, followed by Slovakia at 16.3% and Ireland at 17.2%.

Heating And Cooling Also Show Steady Progress

Renewable energy accounted for 27.4% of heating and cooling across the EU in 2025, the highest level since comparable records began in 2004. The share increased by 0.7 percentage points from 2024, slightly below the long-term annual average increase of 0.75 percentage points.

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