Energy Law at Cyprus
Cyprus has developed a comprehensive legal and regulatory framework to govern its energy sector, focusing on sustainability, renewable energy, and alignment with European Union directives. Here's an overview of the key legislation and institutions shaping Cyprus's energy landscape:
⚖️ Key Energy Legislation
1. Law No. 107(I)/2022 – Promotion and Encouragement of Renewable Energy Sources
This law, enacted in 2022, harmonizes Cyprus's legislation with EU Directive 2018/2001 on the promotion of the use of energy from renewable sources. It establishes a framework for:
Setting binding EU targets for renewable energy share by 2030.
Providing financial support for electricity produced from renewable sources.
Encouraging self-consumption of renewable energy.
Promoting renewable energy in heating, cooling, and transport sectors.
Facilitating regional cooperation within the EU and with third countries.
Implementing guarantees of origin and streamlining administrative procedures.
2. Law No. 106(I)/2022 – Fuel Specifications and Sustainability Criteria
This legislation aligns with EU Directives 2018/2001 and 2015/1513, focusing on:(
Defining fuel specifications and establishing a fuel quality monitoring system.
Setting sustainability and emission reduction criteria for biofuels, bioliquids, and biomass fuels.
Regulating the use of renewable energy sources in the transport sector.
Monitoring and reducing greenhouse gas emissions from fuels.
🏛️ Regulatory Authority
Cyprus Energy Regulatory Authority (CERA)
Established in 2021, CERA is the independent body responsible for regulating the electricity and natural gas markets in Cyprus. Its functions include:
Ensuring compliance with national and EU energy laws.
Issuing licenses for energy producers and suppliers.
Monitoring market performance and consumer protection.
Implementing regulations for the internal energy market.
🌱 Renewable Energy Initiatives
Solar Thermal Water Heating
Cyprus has become a global leader in solar thermal water heating, with approximately 93.5% of households utilizing this technology. Introduced in the late 1960s, it has proven to be a simple and cost-effective solution, significantly reducing electricity costs and benefiting low-income families. The widespread adoption has also supported local manufacturing industries and generated employment.
Offshore Wind and Solar Projects
Cyprus is collaborating with southern EU countries to transform the Mediterranean into a renewable energy hub. The focus is on offshore wind and solar energy projects, aiming to bypass bureaucratic hurdles and attract investors. Existing pilot projects will guide further developments, with integration into current power grids being a key challenge.
🌍 Regional and International Cooperation
Electricity Interconnections
Cyprus is working on establishing undersea electricity cables to connect with neighboring countries:
Cyprus–Israel Link: Aimed at ending energy isolation and facilitating access to Cypriot energy reserves, including both conventional and renewable sources. Cyprus is projected to generate approximately 4 gigawatts of electricity, with a significant portion from renewable sources.
Cyprus–Greece Link: The €1.94 billion EU-funded project, known as the Great Seas Interconnector, is underway, connecting Cyprus to Greece. Although Turkish objections over maritime jurisdiction have caused delays, the project aims to enhance energy security and integration.
⚠️ Challenges and Outlook
Despite significant progress, Cyprus faces challenges in achieving its renewable energy targets. President Nikos Christodoulides has expressed concerns that Europe may have set climate goals too high without adequately considering economic competitiveness. Cyprus aims to increase its renewable energy production to 33% by 2030, while also exploring its natural gas reserves as a temporary measure. The balance between ambitious climate goals and economic considerations remains a key issue.
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