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New Legislation To Revolutionize Energy Storage In Cyprus

After much anticipation, the Cyprus Parliament unanimously passed a pivotal law enabling the storage of electrical energy. This significant move, driven by persistent efforts from Energy Minister Giorgos Papanastasiou, brings Cyprus a step closer to energy stability.

The Role Of Energy Storage

The new law grants the Transmission System Operator of Cyprus the responsibility to implement and manage energy storage systems. Collaborations with the Electricity Authority of Cyprus aim to stabilize the island’s isolated electrical grid and minimize the risks of power shortages. This initiative is vital in reducing the curtailment of green energy, particularly from photovoltaic sources, due to overproduction.

Political Dynamics And Unified Agreement

The legislative journey was not without its complexities. Notably, amendments proposed by the Energy Committee’s Chairman, Kyriakos Hadjiyiannis, were reshaped by a majority, reflecting the European Union’s directive for state-backed energy storage solutions. Despite initial resistance, all parties, including the opposition and the Democratic Rally party, expressed unanimous support for the revised bill.

This development not only paves the way for energy resilience in Cyprus but also aligns with broader European environmental goals, solidifying Cyprus’s role as a forward-thinking player in regional energy advancements.

Cyprus Construction Price Index Rises Amid Cost Pressures

The latest data from the Cyprus Statistical Service (Cystat) shows that the Price Index of Construction Materials in Cyprus reached 118.89 points in January 2026, based on a 2021 average of 100. Compared with December 2025, the index increased by 0.12%, indicating gradual price adjustments across the sector.

Year-Over-Year Growth

On an annual basis, the index recorded a 1.09% increase compared with January of the previous year. The rise reflects ongoing changes in contractor costs and highlights evolving market conditions within the construction industry.

Commodity-Specific Movements

The report provides a detailed breakdown by material category. Minerals recorded the strongest annual increase at 2.91%, followed by electromechanical products at 2.55%. Products made from wood, insulation materials, chemicals and plastics rose by 1.19%, while mineral products increased by 0.97%. In contrast, metallic products declined by 0.49%.

Volatility In Sub-Categories

More pronounced changes were observed within specific sub-categories. Mineral aggregates rose by 8.34%, while stones increased by 4.97% compared with January 2025. Electrical fixtures posted a 4.65% increase. Iron and steel products declined by 1.73%, and ceramics and cement continued to trend lower, falling by 1.47% and 1.38% respectively.

Methodological Insights

The index is calculated as a weighted average based on the expenditure share of sampled materials during the 2021 base year. Prices are collected monthly from a range of suppliers, using the 15th of each month as the reference date and excluding VAT. The Construction Costs Index applies specifically to new residential buildings.

This detailed analysis not only sheds light on current market trends but also offers stakeholders a robust framework for understanding the underlying cost dynamics in Cyprus’s construction materials market.

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