Energy Minister George Papanastasiou is implementing relief measures to support consumers facing inflation, including facilitating access to affordable energy and introducing transparent price comparison systems. The government’s focus on renewable energy solutions and tax interventions, such as zero VAT on essential products, aims to ease the financial burden on households and businesses amidst economic challenges.
Negotiations for Cyprus’s Vasiliko LNG terminal project are crucial, with the Energy Minister meeting the CPPMetron Consortium to discuss the project’s future. The government is firm on either proceeding with the current contractor or exploring alternatives, citing financial constraints and the need for completion to enhance energy diversification in Cyprus.
Cyprus is on a determined journey to carbon neutrality, with plans to shift towards natural gas, renewables, and organic waste for energy, while investing in green technologies. The European Climate Law sets a target for Cyprus to be carbonneutral by 2050, driving the nation’s transformative energy revolution.
Cyprus is expected to contribute up to €100 million to the Great Sea Interconnector project, linking the electricity grids of Cyprus, Greece, and Israel to boost regional energy security. This financial commitment is crucial to keep the project moving forward and enhance energy cooperation in the region.
The Cyprus government will join the Great Sea Interconnector project if it meets financial and strategic conditions, linking energy infrastructures with Greece and Israel for enhanced energy security and regional cooperation. Finance Minister Makis Keravnos emphasized the project’s potential to end Cyprus’s energy isolation and underscored the need for thorough examination of the estimated €100 million investment required from the Republic of Cyprus.
Cyprus’s economy is thriving with a 29% increase in tourism revenue in December 2023, reaching €74.3 million and a 22.6% rise in annual revenue, hitting nearly €3 billion, showcasing a promising future for the sector. The island’s financial landscape is also evolving, with advancements in energy projects, agricultural innovation, and financial market collaborations, demonstrating Cyprus’s commitment to growth and prosperity.
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.
Political pressure mounts on the Electricity Authority of Cyprus (EAC) to halt a proposed 6% electricity bill increase for 2024. Lawmakers challenge the stateowned provider to dip into cash reserves instead of raising costs for consumers amidst scrutiny over its monopoly status and profits.
