Cyprus is continuing its large-scale modernization of the electricity grid. By August 2026, the Electricity Authority of Cyprus (EAC) expects to complete the installation of 400,000 smart meters—nearly six months ahead of schedule. However, the most significant change will not be the replacement of the equipment itself, but the introduction of a new electricity pricing system. In the future, consumers will be able to pay different electricity rates depending on the time of day, allowing them to significantly reduce their energy bills.
A New Pricing System
The primary goal of installing smart meters is to introduce so-called dynamic tariffs. This means that the price of one kilowatt-hour will no longer remain the same throughout the day. During peak demand, when electricity consumption is highest, tariffs will remain higher. At night and during periods of lower demand, electricity prices will decrease. This approach has already been widely adopted across Europe and is considered one of the most effective ways to reduce pressure on the power grid while helping consumers save money.
For example, households will be able to schedule washing machines, dishwashers, water heaters, electric vehicle charging, and other energy-intensive activities during cheaper off-peak hours. As a result, monthly electricity bills could become noticeably lower without requiring consumers to reduce their overall energy consumption.
Currently, most residential customers in Cyprus pay a fixed electricity tariff. While separate night-time tariffs already exist, the introduction of the smart metering system will offer significantly more pricing options. The new tariff models are currently being developed by the Electricity Authority and will require approval from the Cyprus Energy Regulatory Authority.
Installation Is Ahead of Schedule
According to the EAC, approximately 365,000 smart meters have already been installed across the island. On average, specialists install around 16,000 new devices every month. Under the original timetable approved by the Energy Regulatory Authority, the installation of the first 400,000 meters was expected to be completed by January 2027. However, the project is progressing ahead of schedule, and this milestone is now expected to be reached by August 2026.
The utility company will then move on to the next phase of the program by procuring an additional 100,000 smart meters. This will allow the project to cover virtually all residential electricity consumers in the country. The initiative forms part of the European Union's broader program to modernize electricity networks. Under EU requirements, at least 80% of all electricity consumption points must be equipped with smart meters.
Installation Will Be Free of Charge
The EAC has emphasized that the installation of the new smart meters will be completely free for residents. This applies both to the initial 400,000 units and to the additional 100,000 meters planned for the next phase.
The project is being financed with support from the European Union, and part of the funding has already been allocated. As a result, homeowners and apartment owners will not have to pay for either the installation or the replacement of their electricity meters.
In addition to enabling new tariff structures, smart meters will automatically transmit electricity readings without requiring visits from meter readers. This will improve billing accuracy, eliminate manual reading errors, and speed up data processing. In the long term, the system will become a key component of Cyprus' digital transformation of the energy sector. It will support wider adoption of solar energy, home battery storage systems, and electric vehicle charging stations, while enabling more efficient electricity demand management across the country.
Once the new tariff system is approved, residents of Cyprus will be able to choose the most cost-effective times to use household appliances, reducing their electricity bills without changing their everyday lifestyle.