Cyprus is preparing a €20 million grant scheme to help businesses install energy storage systems alongside solar panels, aiming to improve energy efficiency and reduce electricity costs.
Energy, Commerce and Industry Minister Michalis Damianos announced the programme at the annual general meeting of the Larnaca Chamber of Commerce and Industry. The government plans to allocate €10 million in 2027 and another €10 million in 2028. Consultation on the draft programme guide has concluded, with the scheme expected to launch as soon as possible.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
Supporting Business Solar And Energy Security
The grants will support businesses with existing or planned photovoltaic systems for self-consumption. Adding battery storage would allow companies to use more of the electricity they generate, reduce reliance on the grid and potentially lower operating costs.
Damianos also outlined developments at the Vasilikos energy hub. Completion of its central fire-fighting system is expected in February 2027, while work continues on establishing a governance body for the facility.
The government is also advancing the tender for the Vasilikos liquefied natural gas import terminal. Eight companies took part in the first stage, completed in early October. Candidates for the next stage are expected to be selected by the end of 2026, with the contract targeted for award before summer 2027. The terminal is intended to diversify energy supplies, strengthen security and help reduce emissions and electricity prices.
More Than €350 Million In Business Support
Cyprus has secured €352 million for business grant programmes under the 2021–2027 funding period, covering energy and digital upgrades, manufacturing, entrepreneurship and the circular economy.
Between January 2021 and September 2026, the Ministry of Energy, Commerce and Industry paid more than €151 million to nearly 5,500 beneficiaries. This included €113 million through the THALEIA programme and €38 million under the Recovery and Resilience Plan.
Two schemes supporting new businesses, launched in 2021 and 2024 with a combined budget of €50 million, approved 1,021 beneficiaries. The government is also preparing a simplified grant programme for entrepreneurs aged 18 to 35, with applications expected to open in the first quarter of 2027.
Meanwhile, domestic exports excluding mineral fuels and petroleum products reached €1.37 billion in 2025, up 10% year on year. Service exports totalled €32 billion, an increase of 6%. A new strategy to attract businesses and skilled workers for 2027–2030 is expected to go before the Cabinet in December.
Larnaca Calls For Progress On Major Projects
The meeting also highlighted concerns among local business and civic leaders over delays to major development projects, particularly Larnaca’s port and marina.
Larnaca Chamber President Nakis Antoniou called for clear decisions and firm timelines, warning that the city had waited too long for progress. Cyprus Chamber of Commerce and Industry President Stavros Stavrou also urged the government to clarify how the project would proceed.
Local leaders identified the port and marina as important for tourism, employment and economic development, while calling for better coordination, faster planning approvals and less bureaucracy.
Other priorities include upgrading industrial areas, improving road and public transport infrastructure, and developing Larnaca’s potential in aircraft maintenance, repair and overhaul. The Chamber has also proposed an aircraft engineering school in cooperation with UCLan Cyprus and aviation businesses.
Industry, Innovation And Skills
Larnaca has four industrial areas, with 333 plots and approximately 231 businesses operating across them. Damianos announced improvements to parking facilities and tenders for the sale of four factory buildings in the Aradippou and Larnaca industrial areas.
Business representatives also highlighted the need for modern infrastructure, more space for industrial and technology companies, and solutions to high energy costs and labour shortages.
The district is seeking to strengthen its marine and maritime research capabilities through the Cyprus University of Technology’s School of Marine Sciences and the Cyprus Marine and Maritime Institute. Tourism remains another important sector: Larnaca accounted for 15.4% of Cyprus’ tourist arrivals in 2025, ranking third among the districts.
The wider challenge, according to local business leaders, is to turn announced investments and government plans into tangible results. Faster project delivery, more efficient licensing, stronger infrastructure and closer links between education and business needs will be essential to Larnaca’s future competitiveness.
