East Med can lead in regional climate action, energy minister says

Energy Minister Michael Damianos on Thursday said the Eastern Mediterranean can play “a leading role in addressing the climate crisis and shaping the new energy landscape in the region”.

The minister used his address at the international climate conference in Nicosia to present Cyprus’ energy strategy and argue that the country’s vulnerabilities can be turned into a driver of reform.

Speaking at the conference, held under the framework of the Cyprus Presidency of the Council of the European Union and co-organised by the Cyprus Institute and the Deputy Ministry of Research, Innovation and Digital Policy, Damianos pointed to the scale of the challenge facing Cyprus.

He said the country remains “the only EU member state without electricity interconnection with another country”, a structural weakness that has contributed to some of the highest electricity prices in Europe.

At the same time, he noted that 15 per cent of households, or 50,000 families, face energy poverty, making “a just green transition” imperative.

The minister laid out the government’s strategy around four main pillars, beginning with the introduction of natural gas.

He said the Republic of Cyprus had acquired the FSRU vessel ETYFA Prometheus and completed the necessary conversion works, while the LNG import terminal project at Vasiliko, CyprusGas2EU, is progressing, with the tender expected to be launched “within the coming months”.

He added that the introduction of LNG is expected to reduce power generation emissions by 20 to 30 per cent and lower the cost of EU emissions allowances, which currently burden every electricity bill in Cyprus.

He then turned to renewables and energy storage, saying battery storage systems with a total capacity exceeding 300 megawatts are being deployed across multiple sites.

In parallel, projects with an estimated capacity of around 1.2 gigawatts and 3.45 gigawatt-hours are under evaluation.

Energy storage, he said, addresses curtailments in renewable energy production and significantly increases renewable penetration in the grid.

Damianos added that “renewable energy currently accounts for 14.5 per cent of electricity generation and 21 per cent of final energy consumption.”

A third pillar, he said, is interconnection with European networks, with Cyprus strategically pursuing physical interconnection with the European energy grid in a move aimed at enhancing energy security and reducing isolation.

He also pointed to the modernisation of the energy market, noting that on October 1, 2025, Cyprus launched “a competitive electricity market aligned with the EU Target Model”, improving price signals and facilitating the integration of renewables.

Alongside that, he said the rollout of smart meters has already reached 273,000 installations and is expected to reach 700,000 meters by 2026.

Looking ahead, Damianos said Cyprus is aiming for 33.17 per cent renewable energy by 2030, alongside significant energy savings and the transition to zero-emission buildings.

At the same time, he said “the green transition of the industrial sector is being promoted through policies focused on competitiveness, innovation and the use of green hydrogen, while enterprises are being supported through targeted initiatives.”

Moreover, he stressed the strategic importance of international partnerships, referring to agreements with Egypt and collaborations with major international energy companies.

These initiatives, he said, strengthen Cyprus’ position as “a reliable energy hub and a factor of stability in the region”.

In addition, Damianos said that despite the challenges, Cyprus is using its energy vulnerability as “a catalyst for reforms and investments”.

“Every step taken brings the country closer to a resilient and sustainable energy future,” he said, before returning to the broader regional message that the Eastern Mediterranean can assume “a leadership role in climate action through cooperation and innovation”.