Nicosia: The main objective of the Government is to ensure sufficient and affordable electricity for our citizens and businesses, thus providing practical support to our society, especially at a time of major geopolitical upheavals and challenges, said the President of the Republic, Nikos Christodoulides, in his speech at the annual General Meeting of the Electricity Market Association held on Tuesday afternoon in Nicosia.
According to Cyprus News Agency, the President added that the opening of the competitive electricity market on October 1, 2025, marks the beginning of a new era in which Cyprus will be able to base its economy on sound foundations and citizens will enjoy fairer prices. In his speech, which was read on his behalf by the Minister of Transport, Communications and Works, Alexis Vafeades, the President said that energy is a growth factor and a prerequisite for the country’s international competitiveness.
The President emphasized that the government’s energy strategy aims to ensure energy sufficiency at the lowest possible cost, improve energy efficiency, and create modern infrastructure to upgrade, expand, and digitize the transmission and distribution network. This month, the competitive market’s opening will be completed, with the first act taking place on October 1, 2025, allowing a mix of conventional power generation and production from renewable sources for the benefit of consumers, households, and businesses.
He highlighted the importance of cooperation and participation from all stakeholders, expecting the new market to strengthen the competitiveness of the Cypriot economy and rectify distortions caused by the prolonged Transitional Arrangement from 2021. He noted that Cyprus had been trapped in a transitional regime that burdened citizens and hurt the economy’s competitiveness.
The President explained that the competitive market’s functioning is not just a technical development but a political choice aimed at justice towards consumers. He stated that the competitive electricity market is the cornerstone of a broader strategy implemented over the last two and a half years, including strengthening Renewable Energy Sources (RES) penetration and the digitization of networks.
The President detailed ongoing initiatives like the plan for energy storage from existing renewable energy parks and the development of a new RES Storage Plan for households and small businesses. Simplified procedures, such as the One-Stop Shop for rapid licensing of RES projects, were also highlighted as part of efforts to make incentives effective.
He mentioned that a decree exempting energy storage facilities in already licensed small RES projects from urban planning permit processes was issued in July 2025. A corresponding decree to exempt them from building permit requirements is forthcoming, along with a digital platform for electronic submission and processing of relevant applications.
The President stressed the goal of achieving 33% RES penetration by 2030 through concrete decisions and projects, noting that the share of RES in final consumption exceeded 21% in 2024, reaching 24% in the electricity sector.
He assured that the government remains committed to the prudent management of public funds and safeguarding the rights of the Republic of Cyprus. He expressed confidence that the cooperation between public and private sectors would usher in a new era of opportunities, growth, and social progress.