Energy Minister George Papanastasiou said the energy sector in Cyprus “is currently facing significant challenges” with the high cost of power generation.
He told the diaspora conference that addressing these challenges was crucial for the sustainable development of the economy and for enhancing the country’s position in the new energy landscape of Europe.
Papanastasiou said the cost of electricity in Cyprus is too high, with 35-40 cents per kilowatt-hour, whereas in the most expensive country in Europe, the cost is approximately 15 cents.
He acknowledged that Cyprus has a long way to go, referring to ongoing strategic preparations.
“It is precisely for this reason that we have proceeded to redefine our energy strategy, aiming to ensure low-cost electricity and, simultaneously, strengthen the security of our energy supply.”
Upcoming projects to reduce electricity prices are using natural gas to make electricity more competitive and sustainable.
He stressed the need to combine natural gas with solar and wind energy within the next three to four years to ensure the economy’s stability.
Minister Papanastasiou stated that Turkey attempts to prevent Cyprus from becoming energy independent.
He argued that energy-related challenges were global, except perhaps in the North Sea, and said Cyprus must manage this smartly to benefit from its natural resources.
“The energy sector in Cyprus is key to the country’s competitiveness, necessitating the redefinition of the energy strategy to secure low-cost electricity and enhance the security of its energy supply.”
He also noted that these goals were shared by Europe and neighbouring Eastern Mediterranean countries, forming an operational environment favourable to developing natural gas fields discovered in Cyprus’ Exclusive Economic Zone (EEZ).
The minister informed members of the diaspora about developments in Cyprus’ EEZ and said the next step for the Aphrodite field involves finalising a Development and Production Plan.
He mentioned that progress continues with discovery programs in the licensed areas of Cyprus’ EEZ, which are expected to peak in the next 2-3 years.
The initial introduction of natural gas will occur through the liquefied natural gas terminal, set to be completed by June 2024.
“Cyprus is dedicated to green energy and aims to transition away from coal-based electricity production by 2050, in line with the EU’s ambitious goals.”