Cyprus is planning energy reforms aimed at reducing reliance on imported fossil fuels. Michalis Damianos, Minister of Energy, said energy independence is key to maintaining economic stability.
Prioritizing Energy Security In A Volatile Global Landscape
Damianos said energy security remains a national priority, speaking at the 16th Nicosia Economic Congress. Recent developments in the Middle East, including disruptions in the Strait of Hormuz and tensions involving Iran, have affected global oil and LNG markets. Rising energy costs are already impacting household spending.
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Investing Strategically In Energy Infrastructure
Government plans focus on three main areas, including the completion of LNG import infrastructure. Officials said the project could reduce emissions by 25–30% and lower costs linked to emissions allowances. Energy storage projects are also under development under the Transmission System Operator to support grid stability and increase the share of renewable energy.
Modernizing The Grid For A Sustainable Future
Projects include the Great Sea Interconnector and the rollout of smart grid systems, including smart meters. Authorities plan to relaunch a home energy upgrade scheme in 2026 and introduce new grant programs for businesses to support energy efficiency and investment.
Immediate Relief And Long-Term Economic Benefits
The government has reduced excise duties on motor fuels and lowered VAT on electricity to address short-term cost pressures. From 2027, energy consumption is expected to decline by 1.9% annually under national targets. Damianos said businesses should use available investment tools, including the One-Stop-Shop framework.
Cyprus’s Strategic Energy Policies
Energy policy focuses on reducing import dependence and limiting exposure to external price shocks. Officials said current measures are intended to support long-term stability in the energy sector.
