The goal is to complete the terminal at Vasilikos by the end of 2025, enabling us to begin channeling natural gas into conventional electricity generation by early 2026, Minister of Energy, Commerce and Industry, George Papanastasiou has said.

"I know this is an ambitious goal, but we must set ambitious targets," Papanastasiou remarked during the presentation of the Electricity Authority of Cyprus's (EAC) 2nd Sustainable Development Report for 2023, which took place at the Authority's headquarters on Tuesday.

Discussing the three key pillars the government is promoting to reduce electricity costs—natural gas, renewable energy sources (RES), and electricity interconnection – Papanastasiou said that natural gas plays a vital role in reducing emissions.

"Fewer emissions lead to lower costs for the final consumer of electricity," he explained.

Referring to the second pillar, Renewable Energy Sources (RES), Papanastasiou said that RES produce low-cost electricity but noted that "this pillar comes with some uncertainties," since electricity is generated only when renewable sources are in operation.

He stressed the need for conventional electricity generation to complement RES in a power mix, with the aim of maximizing the contribution of RES.

The Minister further noted that while the decision to create a competitive electricity market was made in 2017, "as we approach 2025, we are still operating in a transitional electricity market." He stressed the need for an immediate transition to a fully competitive electricity market.

With the trial electricity market set to begin next month, Minister Papanastasiou expressed hope that by July 2025, "we will have a positive outcome from the trial period," paving the way for entry into the regular competitive electricity market.

Addressing the third pillar—electricity interconnection—Papanastasiou stressed the importance of the European single electricity market for an island that remains energetically isolated.

"We face a significant challenge until 2029 or 2030, when the electricity interconnection will be operational. The challenge is for local electricity production, and the overall mix, to be competitive," he stated.

"Otherwise, we will see electricity flowing from cheaper markets, such as Greece, to Cyprus," he warned.

"The Cypriot consumer, whether a household or a business, must be able to pay their electricity bill while ensuring that the economy remains competitive," he stressed.

He also acknowledged the crucial role of the EAC in the first pillar concerning natural gas.