Renewable energy sources are now producing nearly as much power as conventional methods, according to Energy Minister Giorgos Papanastasiou. However, only 20% of this renewable capacity is currently used, a figure that could significantly increase with new storage systems, said Papanastasiou presenting the Ministry’s 2025 budget in the parliament. He also outlined plans to introduce a 150-megawatt hybrid storage system and new AI tools for monitoring fuel prices and referred to major project already on track.

Papanastasiou said that Cyprus now generates about 950 megawatts from wind and solar parks compared to the 1,500 megawatts from conventional sources. He noted that "solar and wind energy production is now approaching conventional production levels." However, he noted that due to current limitations, only 20% of this renewable energy was utilized, though this could be greatly increased with energy storage systems. He revealed that a proposal for 150 megawatts of hybrid storage systems will be submitted to the Cabinet next Thursday, followed by an open tender process.

 “A mix of low-emission conventional generation and increased renewable energy usage with storage will significantly reduce electricity costs for households and, more importantly, for businesses,” Papanastasiou added.

AI for fuel price monitoring expected by year-end

Papanastasiou also said that the Ministry of Energy, has introduced a new artificial intelligence-based system to monitor fuel prices, with a focus on identifying sudden spikes. The Consumer Protection Agency, which will operate the system, has completed its procurement process, and the system is expected to be active by the end of the year.

"This system, powered by machine -learning algorithms, will allow Consumer Protection to investigate sudden price changes," Papanastasiou explained.

In addition, he said that the Ministry aimed to launch the e-Kalathi platform, a price comparison tool, in time for the Christmas shopping season. The platform will undergo a 15–20-day pilot phase to address potential issues before its full rollout.

Fast-track development for “Kronos” gas field

Regarding Cyprus’s Exclusive Economic Zone, Minister Papanastasiou announced that the “Kronos” gas field in block 6 was undergoing fast-track development by Italy’s ENI, with a development and production plan expected as soon as this month. The gas from “Kronos” will be transported to Egypt for liquefaction and export. He added that according to projections, Cyprus's first gas would reach the surface by mid-2027, using facilities at Egypt’s Zohr field.  

For the “Glaucus” field in Block 10, managed by ExxonMobil, he said that the company was planning two new drilling projects starting in early 2025 in an adjacent block. The findings, according to the Minister, will determine whether “Glaucus” will be developed in conjunction with “Chronos” or independently.

For the “Aphrodite” field operated by Chevron, Papanastasiou said that discussions were underway on an updated development plan for the 4.5 trillion cubic feet capacity field. The aim, as he said, was to finalize plans by mid-January 2025 to meet the next project milestone.

2025 budget and strategic goals

The 2025 budget for the Ministry of Energy provides €175.4 million in expenditures, of which €126 million is allocated for development projects and €49.4 million for operations.

The Minister pointed out that in order to address the high cost of electricity, the Ministry plans to invest €38.5 million from national and EU resources between 2022 and 2027. Investments of €194.4 million are also planned over the same period to foster a competitive and flexible industrial sector.

GSI cable and “Prometheus” LNG ship

Papanastasiou also provided updates on the Great Sea Interconnector (GSI) cable project, with seabed surveys by France's Nexans proceeding smoothly, and cable installation scheduled to begin in early 2026.

Regarding the “Prometheus” floating storage and regasification unit for natural gas, he said that the vessel was set to depart from Shanghai, China, within weeks. Papanastasiou also said that the Ministry was working with the Deputy Ministry of Shipping to secure multi-trip certification for the vessel, enabling it to transport liquefied natural gas.

 He added that the project’s advisor has also been selected to prepare tender documents for the completion of the pier and onshore storage at Vasilikos.