Cyprus residents should not expect lower electricity tariffs anytime soon. The management of the Electricity Authority of Cyprus (EAC) has officially confirmed that prices will begin to decrease only after the launch of large-scale solar parks and the start of natural gas supplies. Until then, electricity bills—especially during the summer months—will remain among the highest in the European Union.
Why Electricity in Cyprus Remains Expensive
Following a meeting with DISY leader Annita Demetriou, EAC Chairman George Petrou stated that the key to reducing tariffs lies in expanding domestic electricity generation from renewable energy sources and switching to natural gas. So far, neither of these initiatives has been fully implemented.
The main issue is that Cyprus still relies heavily on expensive heavy fuel oil and diesel to generate electricity. This makes the cost per kilowatt-hour significantly higher than the European average. Additional pressure comes from high fuel import costs, EU environmental charges on CO2 emissions, and constantly rising electricity demand during the hot summer months.
The delayed construction of the LNG terminal in Vasiliko is also affecting the situation. This project was intended to form the foundation of the island’s energy reform and enable a transition to cheaper natural gas. However, the launch date has been postponed again, and with it any meaningful reduction in tariffs.
Solar Energy Has Yet to Deliver the Expected Impact
Despite the rapid development of renewable energy, Cyprus has not yet seen the expected benefits. According to Petrou, the EAC has still been unable to fully develop its own large-scale photovoltaic parks due to disputes with the energy regulator CERA and lengthy approval procedures.
Today, solar panels are being widely installed by households and businesses, but this is not enough to significantly affect the overall cost of electricity nationwide. The EAC believes that only large state-backed solar plants will be able to substantially reduce the island’s dependence on imported fuel.
Energy market experts note that Cyprus enjoys one of the highest levels of solar irradiation in Europe, yet this potential remains far from fully utilized. Authorities expect the share of renewable energy to grow at an accelerated pace over the coming years, especially in response to new EU climate neutrality requirements.
Old Power Plants Continue to Operate at Full Capacity
The condition of the island’s energy infrastructure is another cause for concern. Some EAC equipment has been in operation for more than 40 years. Although the company says all necessary maintenance has been completed, the risk of breakdowns and overloads during the summer remains.
This year, generating capacity increased by approximately 80 megawatts, which should help prevent blackouts during peak demand periods. However, authorities acknowledge that the problem cannot be solved in the long term without a major modernization of the energy system. New generators are expected to be introduced only starting in 2028. Until then, the island will have to balance rising consumption with aging infrastructure.
Tensions are also growing within the industry itself. Trade unions are demanding urgent investment in the Dhekelia power station and faster construction of solar parks. Worker representatives warn that if the authorities continue to delay decisions, strikes could intensify. In their view, the lack of strategic investment is precisely what has left Cyprus among the EU countries with the most expensive electricity for households. They also criticize the government for its slow response to both the energy and water crises.
What Consumers Can Expect in the Coming Years
Analysts believe that no substantial reduction in tariffs is likely in 2026–2027. Even if parts of the new infrastructure become operational, the impact will be gradual. At the same time, increased summer consumption due to air conditioning and growing tourist numbers will continue to put pressure on the energy system.
Against the backdrop of high prices, more and more Cyprus residents are turning to home solar panels and battery storage systems. Interest in net metering programs remains at record levels, and installation schedules for some providers are already booked months in advance.
Experts believe that a real turning point will only be possible after completion of the gas project in Vasiliko, modernization of the power plants, and large-scale expansion of solar generation. Until then, Cyprus will continue to live with expensive electricity and a high dependence on external energy markets.