The goal of having a solution to the issue of energy storage within the next 18-24 months, so that green energy is not rejected, was set by the Minister of Energy, Commerce and Industry, George Papanastasiou.

Addressing a press conference of the Green Energy Group in Nicosia, the Minister noted that the energy system of Cyprus is undergoing complete restructuring, with a focus on efforts to operate a competitive electricity market. 

He added that 41% of the budgeted resources of the Recovery and Resilience Plan concern the green transition, while the Ministry of Energy, Commerce and Industry secured €590 million for the period 2021-2027, which will be used mainly to grant financial incentives to households, businesses and public institutions for investments in energy efficiency and RES.

Due to the small and isolated size of the Cyprus market, Papanastasiou said that RES penetration is particularly difficult, also underlying the absence of storage systems and seasonal demand. He added that Cyprus is still dependent on imported oil products and is vulnerable to oil fluctuations in international markets.

Given the above, Papanastasiou said that it is vital to strengthen the security of the country's energy supply, to ensure the uplift of energy isolation and the operation of the competitive electricity market and the internal natural gas market, while he referred to the €5.4 million provided by the "Cyprus-Tomorrow" programme for the management system of the competitive electricity market and a fund of €100 million for the Euro-Asia Interconnector, the Cyprus-Greece-Israel electrical connection.

In addition, he said that €120 million have been secured from European funds for the expansion, upgrade and digitisation of the network, through smart meters, and €40 million for the promotion of energy storage systems.

Regarding the internal natural gas market, the Minister noted that the Ministry is intensifying the actions for the implementation of the liquefied natural gas import terminal in Vassiliko, and for the supply of natural gas for power generation purposes through a pipeline from the natural gas fields, with the main objective of reducing the electricity price in Cyprus, while strengthening the security of energy supply.

He added that natural gas will bring numerous benefits, since it will give independent power producers the opportunity to operate, creating competition in the electricity market, reduce gas emissions in power generation and offer the necessary flexibility to conventional generation to further promote RES .

Asked if there is a "plan B" in case Cyprus fails to reach the European climate targets, the Minister said that the alternative is the purchase of emissions rights from other countries, but this should be avoided because the cost will be transferred to consumers. He noted that the EU's targets are very high, and while we may be approaching them in electricity generation, we are still far behind in transport, where measurements will also include aviation and shipping.