This week in Cyprus, the Bank of Cyprus reported a profit after tax of €487 million, showcasing financial stability. Meanwhile, the Poseidonia Hotel in Limassol is spearheading a sustainable transition, and the Cyprus Energy Regulatory Authority called for renewable energy reforms to drive transformation.
Cyprus plays a crucial role in shaping the future of natural gas in the Mediterranean through its involvement in the East Mediterranean Gas Forum (EMGF), promoting cooperation and regional market development. With discussions focusing on challenges and opportunities, Cyprus aims to transform the region into a significant natural gas hub, ensuring energy stability and security while fostering collaborative growth.
Aksa, a Turkish energy company, is accused of profiteering in Cyprus, with profits claimed to be around $1 billion since 2000. Controversial contracts with KibTek, the north’s electricity authority, are criticized for prioritizing Aksa’s interests over local needs and potentially netting Aksa an additional €1.26bn by 2038, sparking public outrage and calls for governmental action.
Cyprus struggles with a chaotic energy policy marked by failed natural gas integration attempts and economically irrational renewable energy strategies, leading to high carbon emissions fines for the country. The controversial Vasiliko LNG terminal project exemplifies the challenges faced, with soaring costs, lack of competitive bidding, and a strained publicprivate partnership adding to the complexities of Cyprus’ energy landscape.
The 2024 budget debate in the northern region is centered around concerns regarding energy procurement, property sales to foreigners, recognition of sports teams, parliamentary promises and hiring practices, and international relations. Of particular focus are the controversial 15year energy procurement deal with a Turkish firm, the policy on property sales to foreigners, and the government’s efforts to strengthen international relations.