Cyprus - Country Commercial Guide
Renewable Energy Sources (RES)

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2021-09-30

Overview

Republic of Cyprus:

The Republic of Cyprus (ROC) seeks to expand the share of renewable energy sources (RES) in its energy mix.  Meeting EU mandated reductions in carbon emissions will require increased investment in RES power generation, both commercial scale and individual building scale, and a major transformation of road transportation.  Production from RES currently stands at 157.5 MW from wind, 125 MW from solar, and 12.8 MW from biomass.  The ROC anticipates an additional capacity of 360 MW to be installed by 2023 but wants to raise total RES penetration in the electricity sector to 700-750 MW, mostly through solar power.  However, storage technologies will be of paramount importance to reach that target unless or until the EuroAsia Interconnector cable comes on line, which is no sooner than 2030.

Under EU-mandated targets, the ROC was required to increase its total energy consumption drawn from RES to 13 percent by 2020.  Cyprus achieved 13.8 percent by the end of 2018.  By 2030, the ROC must increase that number to 23 percent.  Moreover, it will have to increase transport sector numbers to 14 percent, which will be the ROCs biggest challenge, requiring considerable investments to create the necessary infrastructure for RES-propelled transport. 

The ROC has introduced programs for electric vehicles (EV) and has 18 double charging stations throughout the island which it plans to increase soon.  The Department of Electromechanical Services is also planning to install 10 fast-charging stations on highways and public roads soon.  A pilot scheme, with a budget of 1 million Euro, is in the works to facilitate fast chargers for home charging of EVs with the use of photovoltaics (PV).  The scheme will include storage options and will mandate the use of smart meters.  Moreover, the ROC is currently developing its offshore RES strategy.

ROC consumer electricity prices are at the upper end of the EU average.  ROC efforts to lower energy costs to consumers include upgrading Vasilikos Power Station (VPS) to run on natural gas and the future entry of independent power producers into the market.  The ROC has incentivized use of RES in the ROC’s energy mix through government supported programs such as Net Metering and Self-Consumption, initiated in 2013, and Net Billing for industry, introduced in 2018.  Since January 2017, the ROC has mandated a minimum percentage of primary energy consumed in new buildings to come from RES; for single family homes it is at least 25 percent, for new multi-apartment residential buildings it is three percent, and for non-residential buildings, the minimum is seven percent.  Currently, there are more than 17,000 systems installed (without storage capacity), exceeding 65MW in production (Note: the 65MW is included in the total solar production of 125MW). 

The Cyprus Energy Regulatory Authority (CERA), in cooperation with the Transmission System Operator (TSO) and other energy stakeholders, is working to alleviate competition constraints in the power generation sector.  New Market Rules (NMR) should be fully implemented in 2022, at which time a number of key projects that are under tender or construction are expected to come on-line, allowing electricity to trade on competitive terms.  The Distribution System Operator’s (DSO) rollout of Advanced Metering Infrastructure (AMI) with 400,000 smart meters will also help in the gradual removal of barriers to enter the electricity market, although the installation process will take seven years to complete.  The rollout will commence in 2021.

Area Administered by Turkish Cypriots:

The Turkish Cypriot community passed the “Renewable Energy Resources Law” in 2014, which aims to reduce use of fossil fuels and allow use of alternative energies.  The approval and passage of the “law” has drawn the attention of both local businesspeople interested in establishing companies based on RES, as well as household consumers who are interested in using renewable energy.  The “Renewable Energy Council” under the “Ministry of Economy and Energy” (website is in Turkish) can provide further information.

Leading Sub-Sectors and opportunities

Renewable Energy Sources (RES) Power Storage, PV, and Offshore Wind:   

The ROC Ministry of Energy, Commerce, and Industry (MECI), and other energy interlocutors are looking into RES storage options.  This is a potential opportunity for U.S. companies with storage technology equipment and expertise.  Also, U.S. companies with photovoltaic or offshore wind technology and products, smart meters and related 

Resources

Ministry of Energy, Commerce, and Industry (MECI), Energy Services Department (Note: Information only available in the Greek language)