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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 Tech Sector Propels Economic Growth and Reshapes Talent Landscape

Robust Economic Expansion

At the recent TechIsland Summit, Christophoros Anayiotos, Head of Deal Advisory at KPMG Cyprus, delivered a compelling assessment of the island’s burgeoning tech ecosystem. The 2024 report highlights that the technology sector now contributes 16% of Cyprus’ total Gross Value Added (GVA), up from 12.6% in the previous year. Overall, the sector’s economic impact is estimated at €8.5 billion, with direct contributions of €4.7 billion and an additional €3.8 billion generated indirectly.

Sectoral Contributions and Productivity

Using the Leontief Input-Output Model, the study covers key areas including ICT, professional scientific and technical activities, as well as tech-driven financial and insurance services. Notably, the ICT segment itself delivers €3.4 billion in direct GVA, while professional services and financial operations contribute €840 million and €505 million respectively. This horizontal spread of technological influence underscores the industry’s pivotal role in driving multifaceted business growth.

Resilience During Economic Downturns

Even amid challenging economic conditions, the tech sector has demonstrated remarkable resilience. In the pandemic-stricken year of 2020, while the broader Cypriot economy contracted by 3%, the ICT sector experienced a robust growth rate of 21%. This momentum accelerated further to a striking 38% growth in 2021, reinforcing technology’s role as a stabilizing economic force.

Divergent Trends in Employment

Anayiotos’ analysis reveals that the tech sector now sustains over 62,000 full-time equivalent jobs in Cyprus, with 45,900 direct and 16,300 indirect roles. For every €1 million in increased sector revenue, approximately 13 jobs are generated. Despite the overall employment surge, there has been a significant shift in workforce composition. In 2015, Cypriot nationals comprised 88% of ICT employees; by 2024, this figure dropped to 50%, with non-EU nationals accounting for 42% and other EU citizens 8% of the workforce.

Cyprus as an EU Leader in ICT

Cyprus now holds a prominent place in the EU, ranking second in the EU27 for ICT’s share of national GVA at 11.4%, a notable rise from 9.4% in 2023. Furthermore, the island leads the bloc in ICT GVA growth, posting a remarkable 347% increase between 2015 and 2024. With a top-five ranking in GVA per ICT employee—whereby each contributes approximately €130,000, compared to the EU average of €116,000—the country’s technology workforce has expanded at an annual growth rate of 12.1%, from 9,300 in 2015 to 26,000 in 2024.

Strategic Imperatives for Future Growth

Anayiotos emphasizes the need for strategic enhancements to sustain this expansion. Key recommendations include improving air connectivity, joining the Schengen Area to boost mobility, and attracting more international banking institutions. Additionally, introducing tax incentives designed to favor stock options is considered crucial in luring and retaining skilled talent. Addressing the limited capacity in private education is also vital to accommodating professionals relocating with families.

Investing in Talent and Digital Transformation

Looking forward, investments in education and digital upskilling remain paramount. There is a clear call for a national initiative aimed at promoting STEM careers, elevating the digital skills of both students and educators, and accelerating the digital transformation of public services. Moreover, streamlining legal procedures will be critical to improving the overall business climate and competitiveness.

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