Cypriot Minister of Energy, Commerce, and Industry, George Papanastasiou said on Wednesday the energy sector in Cyprus "is currently facing significant challenges", during his speech at the 21st World Conference of Cyprus Diaspora. He emphasised that successfully addressing these challenges was crucial for the sustainable development of the economy and for enhancing the country's position in the new energy landscape of Europe and the wider region.

Minister Papanastasiou said that the cost of electricity in Cyprus is notably high, with 35-40 cents per kilowatt-hour, whereas in the most expensive country in Europe the cost is approximately 15 cents. He acknowledged that Cyprus has a long way to go, referring to ongoing strategic preparations. He mentioned upcoming projects aimed at reducing electricity prices using natural gas for combustion and to make electricity more competitive and sustainable. He stressed the need to combine natural gas with solar and wind energy within the next three to four years to ensure the economy's stability.

Regarding Turkey's claims, Minister Papanastasiou stated that Turkey is making efforts to prevent Cyprus from becoming energy-independent. He mentioned that energy-related challenges were global, except for perhaps in the North Sea, and said that Cyprus must manage this in a smart way to benefit from its natural resources.

During his speech, the Minister highlighted that the energy sector in Cyprus is key to the country's competitiveness, necessitating the redefinition of the energy strategy to secure low-cost electricity and enhance the security of its energy supply. He also noted that these goals were shared by European countries and neighboring Eastern Mediterranean countries, forming an operational environment favorable to developing natural gas fields discovered in Cyprus' Exclusive Economic Zone (EEZ).

The Minister informed members of the diaspora about developments in Cyprus’ EEZ research program and said that the next step for the "Aphrodite" field involves finalizing a Development and Production Plan based on the revised proposal submitted in June 2023. He mentioned that progress continues with research programs in the licensed areas of Cyprus' EEZ, which are expected to peak in the next 2-3 years.

Speaking to journalist on the sidelines of the event, Minister Papanastasiou explained that the initial introduction of natural gas will occur through the liquefied natural gas terminal, set to be completed by June 2024. He also pointed out that Cyprus was dedicated to green energy and aims to transition away from coal-based electricity production by 2050, in line with the EU’s ambitious goals.

The Minister stressed the challenges ahead but also highlighted efforts to establish natural gas and electricity interconnections with neighboring countries, such as Israel and Egypt, as well as with Greece, to ensure Cyprus' energy security and integration with the European energy grid.

He also mentioned ongoing technical committees with Israel, discussing natural gas, hydrogen, and electricity interconnections, as well as another committee engaging Egypt for an electricity interconnection.