Critical Proposals to Secure Energy Supply and Reduce Costs

Stephanos Stefanos, General Secretary of AKEL, has laid out a comprehensive series of proposals aimed at bolstering energy security, ensuring an adequate electricity supply, and reducing energy costs. His remarks come as he leveled stern criticism against the government for delays and mismanagement in the execution of crucial projects.

Vulnerabilities in Key Infrastructure Projects

Stefanos highlighted the stagnation surrounding the Vasiliko project and the electricity interconnection with Greece, warning that these delays pose significant risks to national energy security. With Cyprus now paying the second highest electricity prices in Europe (when adjusted for purchasing power), consumers are feeling the financial strain. He also reminded that since 2018, citizens have collectively borne 1.3 billion euros in pollution fines.

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Accountability and Oversight

Targeting high-level mismanagement, Stefanos specifically pointed to figures such as Anastasiadis and DISY for their roles in derailing the Termatiko Vasilikou project — a matter currently under investigation by the European Public Prosecutor’s Office. The call for accountability includes demands for a full investigation by the Anti-Corruption Authority and a return of over 67 million euros in misallocated funds.

Demand for Clear Feasibility Studies

On the issue of the electricity interconnection, the government was accused of providing inconsistent positions on key matters. Stefanos urged the authorities to conduct thorough cost–benefit analyses, technical evaluations, and consumer impact studies to determine the viability of the project.

Strategic Infrastructure Initiatives

AKEL’s proposals address several critical areas of energy development:

• Electricity Interconnection: A call for a definitive assessment of the project’s sustainability for public finances and consumer impact.
• Natural Gas for Power Generation: Emphasis on completing onshore infrastructure, clearing unresolved issues, and establishing a clear roadmap with defined milestones and deadlines. An inquiry into alleged scandals and mismanagement is also demanded.
• Exploitation of Domestic Hydrocarbons: The need to clarify agreements with companies for transportation, liquefaction, and export to Egypt is underscored, with a phased approach to prioritize domestic consumption.

A Call for Strategic Energy Planning

AKEL advocates for a comprehensive, transparent energy strategy anchored in oversight, prevention, and realistic planning. To that end, the establishment of an Energy Policy Council—a platform where political parties, technocrats, and experts can deliberate before key decisions—was proposed.

Immediate Operational Priorities

In parallel with long-term planning, several immediate steps are recommended:

1. Securing Electricity Adequacy: Expedite processes to fortify key production sites like Dekeleia, replace outdated and inefficient production units, complete network storage infrastructure, and diversify pricing strategies during periods of renewable surplus.
2. Boosting Energy Efficiency: Invest in widespread energy upgrades focusing on public buildings, schools, low-to-middle income households, and small to medium enterprises. Additionally, secure reliable storage measures and transparent allocation of funds from pollution and transition funds.
3. Strengthening the Electrical Grid: Realign priorities by promoting rooftop solar panels, regulating the unchecked expansion of large industrial parks—especially on agricultural land—and accelerating the development of a flexible, bidirectional smart grid complemented by enhanced storage solutions.
4. Reducing Energy Costs: Implement a series of fiscal measures including the removal of green taxes, a permanent VAT reduction on electricity to 5%, elimination of double taxation on fuels, rapid integration of renewable energy sources into the power mix, taxation of renewable windfall profits to fund anti-energy poverty measures, reduced VAT rates for home energy upgrades and green investments, expanded financing for photovoltaic projects, and automatic inclusion in special tariffs.

Conclusion

With energy prices and security at the forefront of both public concern and policy debates, AKEL’s proposals provide a detailed blueprint for immediate reforms and long-term strategic planning. This roadmap underscores the urgent need for government accountability and a methodical, transparent approach to securing Cyprus’s energy future.