By June 2026 at the latest, the distributed electricity storage system, with a total capacity of 120 MW, which is being implemented and which will operate with full transparency on the basis of the "Political Management and Participation in the Competitive Electricity Market", which will be published and accessible to everyone, said on Monday, the Minister of Energy, Trade and Industry, George Papanastasiou, during the presentation of the of the Cyprus Electricity Authority (ECA) in the year 2024.
At the same time, Mr. Papanastasiou said that according to the estimates of the Cyprus Transmission System Operator, a storage capacity of at least 600 MW is required by 2030, while citing recent data for 2023, he said that these show that energy poverty affected 66,700 households which constitute 17.5% of the total households in Cyprus, from 50,290 households in 2022 or 15.1% of total households and from 10.6% in the EU, due to rising energy prices.
Specifically, in his speech during the presentation of the EAC's achievements for 2024, the Minister of Energy said that the current administration is working together with the EAC to address the daily challenges in the electricity sector, but also energy in general, with "the ultimate goal of electricity sufficiency, the safe operation of our electricity system and the reduction of electricity prices, contributing to green growth and strengthening the competitiveness of our country".
Besides, the Minister of Energy said that in 2022 energy poverty in Cyprus concerned 50,290 households which make up 15.1% of the total households in Cyprus and added that recent figures for 2023 show that energy poverty concerned 66,700 households which make up 17.5% of the total households in Cyprus.
"The increase is mainly due to the increase in energy prices in 2023," he underlined.
He said that in 2023 energy poverty in the EU was estimated at 10.6% based on household statistics questionnaires that asked how easy it is to heat the house, and added that 10.6% of EU households answered that they have difficulty heating their home, meaning it is a subjective indicator.
To this question in Cyprus, according to Mr. Papanastasiou, 19.3% answer that they find it difficult to heat their home.
Referring to some of the challenges that exist, the Minister of Energy said that these are the upgrading of the network and the installation of storage systems, in order to increase the penetration of renewable energy in the electricity system of Cyprus and to reduce the RES cuts, the implementation of the EAC's production development program, including the upgrade of the Dekelia Power Station, the installation by the organization of further RES systems and the operation of the competitive electricity market.
Mr. Papanastasiou applauded EAC's dedication to the implementation of important modernization projects, such as the upgrading and digitization of the transmission and distribution networks, based on the ten-year development programs.
"Using a fund of approximately 120 million euros, from European resources, the dual objective is to remove the technical obstacles related to the further penetration of distributed production from RES and to reduce the cuts of green energy production", he underlined.
He also referred to the progress seen in the installation of smart meters, which began at the beginning of this year and is scheduled for completion in January 2027, while he noted the participation of the EAC in an Ad Hoc Committee, established under the auspices of the Ministry, to examine ways to shift demand to electricity, with the aim of reducing cuts from electricity generation units from renewable sources.
"The role played by the EAC in this joint effort of ours is certainly crucial. Among other things, the Authority is expected to implement tariffs, with a new structure, by 2027 at the latest, through which the production profile will be more representatively reflected, incorporating differentiated periods of peak/off-peak and/or high/low production from RES", he underlined.
Also, the Minister of Energy said that a key to shifting demand is the implementation of flexible connections in the distribution system by the Distribution System Operator, but also the integration and participation in the competitive electricity market of demand response based on the provisions of the law.
Referring to the operation of the competitive electricity market from September 15, 2025, Mr. Papanastasiou said that "after a long road, full of problems and constant postponements, the current administration has managed to achieve what society has been demanding for so many years: free, equal access to the electricity market".
He mentioned that this was done with your input, especially the Distribution System Manager, who also acts as a manager of the metric data received from market participants.
He also said that the upgrade of the Vassilikos power plant is also important, with the completion of the installation of the new unit that will operate with natural gas, as well as the upgrades of the existing units, so that they are ready for burning natural gas.
The Energy Minister said that modernizing EAC's operation so that the organization can adequately respond to the demands of a changing business environment is the only way to ensure its sustainability.
"The continuous improvement of the processes, the upgrading of the service and the timely implementation of the projects and interventions required by our energy system, are decisive parameters", he underlined.
Finally, he stated that the EAC is called upon to develop into a modern, competitive organization, able to quickly adapt to developments and reliably support the citizen, the economy and the transition of Cyprus to a sustainable energy future.
