According to the latest Eurostat data, Cyprus recorded one of the most significant reductions in electricity prices across the European Union in the first half of 2025. The average cost of electricity for households on the island fell by 9.5% compared to the same period in 2024, ranking third among all EU member states.
For comparison, the average electricity price in the EU in the first half of 2025 was €28.72 per 100 kWh, remaining almost unchanged from late 2024 (€28.87). Despite this relative stabilization, European electricity prices are still much higher than before the 2022 energy crisis, when a sharp rise in gas and oil prices triggered a large-scale increase in tariffs.
Germany Leads in High Prices, Cyprus in Efficiency
While Germany topped the list of the most expensive countries (€38.35 per 100 kWh), followed by Belgium (€35.71) and Denmark (€34.85), Cyprus continues to maintain its tariffs below the EU average, demonstrating a balanced policy between energy imports and domestic production.
The lowest prices in the EU were recorded in Hungary (€10.40), Malta (€12.44), and Bulgaria (€13). Despite its geographic limitations and dependence on fuel imports, Cyprus achieved one of the best results in cost reduction, surpassing countries like Finland (-9.8%) and Slovenia (-13.1%).
Energy Policy and the Role of Taxation
One of the main factors affecting prices remains the tax structure. On average across the EU, the share of taxes and levies in electricity prices increased from 24.7% in the second half of 2024 to 27.6% in the first half of 2025. This means that reductions in wholesale electricity prices are not fully reflected in consumers’ final bills.
In Cyprus, however, the situation looks different. Thanks to government efforts and a gradual shift to “green” energy, the island managed to offset part of the tax burden through lower production costs. As a result, final household electricity prices have actually decreased — unlike in many other EU countries, where consumers have not felt the benefit of lower wholesale prices.
Figures and Real Impact on Consumers
According to Eurostat, the cost of electricity in Cyprus, expressed in purchasing power standards (PPS), was 32.1 — one of the most balanced levels in the region. For comparison, this indicator was 39.16 in the Czech Republic, 34.96 in Poland, and 34.4 in Italy, indicating a heavier financial burden on households in those countries.
The tariff reduction in Cyprus is already noticeable to consumers: households are paying less for electricity, while businesses receive an additional boost for growth. This is especially important for the tourism and hospitality sectors, which are key pillars of the island’s economy.
Cyprus and the Future of the Energy Transition
Cyprus is actively developing solar energy and implementing building energy efficiency programs. In 2025, new solar parks and energy storage projects were launched on the island, helping reduce fuel import dependence and stabilize electricity prices.
In the coming years, the Cypriot government aims to increase the share of renewable energy sources in the national energy mix to 32% by 2030. This will not only ensure price stability but also bring the country closer to the goals of the European Green Deal.
A 9.5% reduction in electricity prices makes Cyprus one of the EU’s leaders in energy market efficiency. Thanks to investments in renewable sources, transparent tariff policies, and a focus on long-term sustainability, the island is becoming a model of successful energy transformation in Southern Europe.
The Cypriot model demonstrates that even a small country with limited resources can achieve energy stability while protecting the interests of its citizens.