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Landmark €50 Million Smart Meter Project Signed Between Cyta And EAC

In a significant development for Cyprus’ energy sector, Cyta and the Electricity Authority of Cyprus (EAC) have signed an agreement to roll out a €50 million smart meter project. This initiative is expected to revolutionise the nation’s electricity infrastructure by introducing advanced metering systems aimed at enhancing energy efficiency and management.

Project Overview

The project, part of Cyprus’ broader efforts to modernise its energy infrastructure, involves the installation of 400,000 smart electricity meters across the island by 2027. The initial phase will see the deployment of the first 50,000 meters by early 2025. This ambitious plan is partially funded by the European Union’s Recovery and Resilience Facility, contributing €35 million to the total cost.

Strategic Importance

The smart meter initiative is a cornerstone of Cyprus’ energy strategy, aiming to improve the accuracy of electricity billing, reduce energy waste, and support the integration of renewable energy sources. By providing real-time data on electricity consumption, these meters enable consumers to monitor and manage their energy usage more effectively, potentially leading to significant cost savings and a reduction in carbon footprint.

Government and Industry Support

Minister of Energy, George Papanastasiou, highlighted the project as a milestone in Cyprus’ transition to a more sustainable energy system. The collaboration between Cyta and EAC exemplifies the public-private partnership model, leveraging the expertise and resources of both organisations to achieve national energy goals.

The introduction of smart meters is expected to address several critical issues in the energy sector, including grid management and energy theft. Enhanced data collection and analysis capabilities will enable better demand forecasting and load management, contributing to a more stable and efficient electricity supply network.

Technological and Operational Impact

Cyta, the state-owned telecommunications company, will play a pivotal role in the technological implementation of the project. Their involvement ensures the utilisation of advanced communication technologies to support the smart meter infrastructure. This includes secure data transmission and integration with existing grid management systems.

The EAC, responsible for the operational aspects, will oversee the installation, maintenance, and management of the smart meters. This collaboration aims to ensure seamless implementation and long-term sustainability of the project.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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