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.
He was speaking at the annual General Meeting of the Electricity Market Association held in Nicosia.
He added that the opening of the competitive electricity market on 1 October, 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 of the Republic said that energy is a growth factor and a prerequisite for the country's international competitiveness.
"The main objective of the Government is to ensure sufficient and affordable electricity prices for our citizens and businesses, thus providing practical support to our society, especially at a time of major geopolitical upheavals and challenges. Our energy strategy aims precisely at this: ensuring energy sufficiency at the lowest possible cost, improving energy efficiency, and creating modern infrastructure to overcome energy isolation, but also to upgrade, expand, and digitize the transmission and distribution network," he continued.
This month, the opening of the competitive market will be completed, with the first act taking place on October 1, 2025, he said, adding that through the competitive market, the mix of conventional power generation and production from renewable sources will be able to connect for the benefit of consumers, households, and businesses.
"With the dynamic cooperation and participation of all of you, we expect this new market to become a pillar for strengthening the competitiveness of the Cypriot economy and avoiding further distortions caused by the prolonged application of the Transitional Arrangement from 2021," noted President Christodoulides, adding that for years Cyprus remained trapped in a transitional regime that perpetuated distortions, burdened citizens, and hurt the competitiveness of the economy.
"Today, with clear political will, we are closing this chapter. We are giving the market rules, a framework, and perspective. After all, the functioning of a competitive market is not just a technical development, it is a political choice and an act of justice towards the consumer. It is a turning point that strengthens confidence in the state, as it proves that major outstanding issues can be resolved with planning, consistency, and determination. The competitive electricity market is not the end of the road. It is the beginning of a new era. An era in which Cyprus will be able to base its economy on sound foundations and citizens will enjoy fairer prices," he noted in that regard.
According to the President of the Republic, the competitive electricity market is the cornerstone of a broader strategy that has been implemented over the last two and a half years with determination and includes strengthening the penetration of Renewable Energy Sources, by providing incentives for all, large- and small-scale energy storage, and the digitization of networks and their interconnection with European markets.
"We are already implementing a plan for energy storage from existing renewable energy parks. Fourteen applications have been received and are currently being evaluated. The central storage system is also being developed by the Operator. In addition, as I announced in the Annual Plan for 2025, a new RES Storage Plan for households and small businesses is being developed within the year," he noted.
He also pointed out that for incentives to be effective, they must be accompanied by simplified procedures, adding that as part of this effort, in 2023, a One-Stop Shop was set up for the rapid licensing of RES projects, as well as work related to the energy upgrading of buildings.
He added that in July 2025, the Minister of the Interior issued a decree exempting energy storage facilities in already licensed small RES projects from the urban planning permit process, and that in the coming days a corresponding decree will be issued to exempt them from the requirement to obtain a building permit. He also said that the creation of a digital platform is also underway, through which all the competent authorities involved in the licensing process will be interconnected, with the aim of electronic submission and processing of the relevant applications.
"Our goal is clear: energy security at the lowest possible cost. The results are already visible. The share of RES in final consumption exceeded 21% in 2024, and we are at 24% in the electricity sector. Our goal is 33% RES penetration by 2030. And we will achieve this, not with wishful thinking, but with concrete decisions and projects," he stressed.
The President assured that the government will continue to move forward with determination and with the public interest as its sole guiding principle, committed to the prudent and responsible management of public funds, the money of the taxpayer.
"The government, always within the framework of legality and transparency, is working to safeguard the rights of the Republic of Cyprus. We will not allow distortions to become entrenched. The functioning of a competitive electricity market is the result of cooperation, but above all it is the result of political will. And with the cooperation of the public and private sectors, I am confident that it will be the starting point for a new era of opportunities, growth, and social progress," he concluded.
(Source: CNA)
