Ensuring reliable and sustainable energy supply across Europe will be a key priority on the agenda during Cyprus’ upcoming EU Council Presidency, Energy Minister George Papanastasiou said on Tuesday evening.

“Our priority is to ensure a diversified, reliable and sustainable energy supply, which strengthens Europe’s resilience and its international position, without leaving any citizen or business behind,” the minister said, speaking at the general assembly of the Famagusta chamber of commerce.

He emphasised that Cyprus aimed for a “pragmatic approach” that pairs decarbonisation and the competitiveness of Europe’s energy industry through technological innovation, faster licensing procedures, and investment-friendly regulatory frameworks.

“The path towards zero emissions must be paved on safety, sustainability and affordability, while at the same time protecting European competitiveness, shielding businesses and households from the transitional costs of clean energy,” he said.

Referring to the opportunity for businesses, industries and hotels to generate and consume their own energy through renewables and the net-billing system, he said it was crucial to “understand the pressures caused by high energy costs,” which directly undermine competitiveness.

“Even during periods of restrictions on production from Renewable Energy Sources (RES) – necessary for grid stability – businesses can continue to fully utilise the energy of their facilities, through the zero-export regulation,” he said.

Interested producers and self-producers could range from industrial operators to hotel units and enter the scheme by installing the necessary equipment and filing an application with the electronic authority of Cyprus (EAC), which is responsible for the connection and approval of the units, he added.

Another significant step, the minister said, was the launch of Cyprus’ long-awaited competitive electricity market in the beginning of October.

“[This] creates conditions for real competition and, gradually, will lead to lower prices, in the first stage for large commercial consumers,” Papanastasiou said.

The opening of the market, currently with around eight or nine suppliers, including the Electricity Authority of Cyprus, was aimed at giving consumers access to different suppliers to benefit to both households and businesses.

He said the government has set aside €363 million in EU-backed funding and the Recovery and Resilience Mechanism for the period from 2021 to 2027 to support projects in innovation, energy and digital upgrades, manufacturing and sustainability, while the energy ministry’s forthcoming 2025-30 industrial policy paper was centred around green transition, highlighting energy efficiency, the circular economy and innovation.

“We are also intensifying the effort we began last year to promote the installation of energy storage systems, considering the announcement of specialized sponsorship plans that will concern storage in homes and businesses,” he said.

He added that so far, the energy ministry had focused on facilitating investments in RES and energy-saving measures and simplified photovoltaic licensing.

Other relevant measures in the area of green energy on the island included investments in new RES units and projects by the EAC, as well as efforts by the interior and finance ministry, which he said primarily focused on urban planning and providing tax incentives to support environmentally friendly business investments.