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Expert Calls For Balanced Long-Term Energy Strategy In Cyprus

Cyprus should adopt a long-term energy strategy that combines conventional power generation, renewable energy, storage, electricity interconnection and demand-side management, according to energy systems expert and former Cyprus Energy Regulatory Authority (CERA) chairman Andreas Poullikkas.

In a new analysis, Poullikkas argued that no single technology can guarantee a secure electricity supply for an isolated island such as Cyprus, particularly during periods of high demand and extreme temperatures.

Diversification Is Key

According to Poullikkas, conventional power stations will continue to play an important role in ensuring system reliability, while renewable energy remains central to the country’s decarbonisation goals.

He also highlighted the need to introduce natural gas, saying it could lower fuel costs, improve the flexibility of the electricity system and ultimately help reduce consumer bills.

Battery storage, he added, will make better use of renewable energy by storing surplus electricity and supporting grid stability, but should be viewed as part of a broader energy mix rather than a standalone solution.

Beyond Generation

Poullikkas said connecting Cyprus to neighbouring electricity networks would strengthen energy security, reduce isolation and improve competition in the market.

He also called for wider use of smart meters, dynamic tariffs and demand-response programmes to reduce pressure on the grid during peak periods, while arguing that greater competition would encourage investment in new infrastructure.

“Energy adequacy is not secured through confrontation between technologies, but through the correct combination and complementary role of each one,” he said.

Poullikkas concluded that Cyprus needs an energy strategy based on technical expertise and long-term planning, rather than fragmented or short-term solutions.

Retail’s AI Push Faces A Cybersecurity And Regulatory Reality Check

Artificial intelligence is becoming a strategic priority for retailers, with 80% of retail leaders planning to increase investment in the technology, according to EY’s latest CEO Outlook Survey. However, growing concerns over cybersecurity, customer privacy and regulation could complicate adoption across an industry already facing inflation, geopolitical uncertainty and changing consumer expectations.

Confidence In AI Comes With Risks

The survey found that 80% of retail leaders are confident in their ability to expand the responsible use of AI and customer data. Retailers are increasingly applying the technology to demand forecasting, inventory management, customer service and personalised marketing, seeking to improve efficiency and respond more quickly to market changes.

Yet adoption brings new vulnerabilities. EY found that 24% of retail leaders identified cybersecurity and data privacy as a leading business risk for the year ahead. Retailers manage sensitive customer information, payment systems and complex supply chains, making effective security and governance essential as AI becomes more deeply embedded in their operations.

The World Economic Forum’s Global Cybersecurity Outlook 2026 highlights the wider challenge: 87% of organisations reported rising cyber risks linked to AI vulnerabilities, while 94% expected malicious AI to have a significant impact on cybersecurity in 2026.

Regulation Will Shape AI Adoption

Regulatory frameworks are also influencing how quickly retailers can expand their use of AI. The European Union’s AI Act, China’s state-led governance model and measures introduced by individual US states are shaping the rules around the technology.

For retailers, compliance is becoming a strategic consideration, particularly for customer-facing applications that use personal data to personalise offers, automate interactions or analyse consumer behaviour. Regulatory missteps could carry significant costs in a sector where customer trust is critical.

EY Outlines Four Possible Futures

EY recommends that retailers plan for multiple outcomes rather than assume the current investment boom will continue uninterrupted. Its analysis draws on a four-scenario framework developed by Jim Dator of the University of Hawaii.

One scenario envisages constrained AI adoption as economic pressures, regulation, cyberattacks, legacy systems and poor data quality limit progress. Retailers in this environment may prioritise lower-risk back-office applications, such as finance, procurement, inventory and logistics, while customer-facing tools face resistance.

A second scenario anticipates continued growth, with sustained investment and widespread adoption. A third envisages deeper economic and social transformation as technology reshapes business operations. The fourth considers systemic breakdown, in which a small number of technology platforms control access to AI models and charge premium prices, potentially making advanced capabilities less accessible even to large retailers.

Governance Will Determine Competitive Advantage

EY’s findings suggest that investment alone will not determine which retailers benefit most from AI. Companies will also need robust cybersecurity, effective governance and strategies that can adapt to different economic, technological and regulatory conditions.

For a sector operating on tight margins, the challenge is to turn AI investment into lasting business value while managing the risks that come with greater dependence on the technology.

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