Cyprus ranked among the countries with one of the lowest shares of electricity generated from renewable sources in the European Union in 2025. According to Eurostat data, the country ranked fifth from the bottom, highlighting a significant lag behind the overall European pace of the energy transition.
Across the EU as a whole, almost half of all electricity — about 47.3% — is already produced from renewable sources, and this figure continues to grow gradually. Against this background, Cyprus appears less resilient, despite its high solar potential and favorable climate.
Why Cyprus is lagging in renewable energy development
The main problem for Cyprus is limited capacity and infrastructure for the production and storage of “green” energy. Although solar energy is actively developing, it is still not enough to cover the growing demand. In December 2025, the country produced only about 88.7 gigawatt-hours of electricity from renewable sources, which is significantly lower than the figures of other countries in the region, such as Greece.
Another factor is the high dependence on imported fuel, which makes electricity more expensive and vulnerable to external price fluctuations. At the same time, modernization of the energy system requires time and significant investment.
Rising electricity prices: what will change from May
Against the backdrop of these issues, residents of Cyprus are already facing rising tariffs. From May 2026, electricity prices are expected to increase by about 20%. This is due not only to the global rise in energy costs but also to the need for investments in the development of renewable energy sources.
The transition to “green” energy requires significant investments in solar plants, energy storage systems, and grid modernization. These costs are partially passed on to consumers, which leads to higher tariffs. Authorities emphasize that in the long term such measures should reduce dependence on fossil fuels and stabilize prices.
How energy is developing in Europe
In Europe, wind remains the main source of renewable energy, providing more than a third of all “green” electricity. Solar energy ranks second and shows the fastest growth rates. At the same time, hydropower is gradually losing its share due to climate change and declining water levels.
The leaders in the EU remain countries with developed infrastructure, such as Denmark, where the share of renewable energy exceeds 90%, as well as Austria and Portugal. These countries have been actively investing in sustainable energy for many years.
Cyprus prospects: what comes next
Despite the current lag, Cyprus has the potential for accelerated development of “green” energy. In recent years, the country has been more actively implementing solar panels, supporting private investment, and developing new energy projects, including energy storage systems.
Experts believe that in the coming years Cyprus will be forced to accelerate the transition to renewable sources, especially against the backdrop of rising electricity prices and EU requirements to reduce emissions. Otherwise, the burden on consumers may continue to grow, and the gap with other European countries may widen.