Cyprus

Key facts

Because the island does not have gas pipelines, oil still represents a massive 80% of Cyprus electricity production. [1]

Solar represents 15.6% of the electricity production, followed by wind at 4% and a small share of biofuels completes the mix. Electricity production closely matches national demand.

Cyprus currently has 0% electricity imports as a completely isolated island grid, awaiting completion of the Great Sea Interconnector.

  • Electricity represents 26% of Cyprus final energy consumption.
Cyprus: electricity generation mix
  • Oil
  • Solar PV
  • Wind

Current state of electrification

Residential buildings in Cyprus

Buildings

  • Buildings represent a major part of electricity consumption in Cyprus:
    • Commercial and public services represent 48% of electricity consumption
    • Residential buildings represent 35% of electricity consumption [2]
  • About 3,000 heat pumps are sold each year. The total installed stock is estimated at 5,000 units. Reversible air-to-air split systems (air conditioners) are installed in over 80% of households for heating and cooling. [3] [4]

Industry

Sources [5]

  • Industry represents 12.9% of electricity consumption.
    • Non-metallic mineral products (cement, glass, and ceramics): 0.13 to 0.15 TWh | 35% to 40% of industrial electricity
    • Food, beverage, and tobacco: 0.08 to 0.10 TWh | 22% to 26% of industrial electricity
    • Machinery, equipment, and other manufacturing: 0.05 to 0.07 TWh | 14% to 18% of industrial electricity
Industry — from the design
Transport — from the design

Transport

Sources [6]

  • Transport only represents a minor part of Cyprus electricity consumption. The data for the total number of vehicles on Cypriot roads is from the Statistical Service of Cyprus [7]
  • The electric fleet is composed of
  • 3994 cars (+741 year on year) — this represents 0.71% of the ~564 000 passenger cars on Cypriot roads
  • 229 light commercial vehicles (+32 on year on year) — this represents roughly 0.35% of the estimated ~65 000 light commercial/delivery vehicles on Cypriot roads
  • 41 buses (+0 year on year) — this represents 1.37% of the ~3 000 buses on Cypriot roads
  • 4 trucks (+0 year on year) - this represents roughly 0.005% of the ~85 000 trucks on Cypriot roads
  • 1461 light vehicles (+49 year on year) — this represents roughly 1.12% of the ~130 000 motorcycles and mopeds (less than 4 wheels) on Cypriot roads

Grid and flexibility

Transmission & Distribution

Cyprus’s isolated electricity grid struggles with congestion because it produces too much solar power during sunny afternoons.
Because the island lacks large-scale battery storage, local lines cannot handle the power spike.
This forces operators to shut down home solar panels and waste clean energy. [8]

Storage

To combat rising solar curtailments, which nearly doubled from 167 GWh in 2024 to 306 GWh in 2025 as solar capacity surpassed 1,040 MW against a 650 MW average demand, Cyprus is rapidly scaling its battery storage pipeline to reach several hundred megawatts of operational capacity by 2027.
This deployment is anchored by state-level grid stabilisation projects specifically the €50 million, 120 MW / 400 MWh TSO-CyTA system and the 80 MW / 160 MWh EAC Dhekelia project paired with a €40 million EU Just Transition Fund scheme targeting 150 MW / 350 MWh of hybrid solar storage.
To complement this public push, private developers have already secured preliminary grid connection approvals for 231 MW / 570 MWh of standalone capacity, while a massive regulatory licensing backlog of over 900 MW awaits clearance to help stabilize the island’s isolated grid ahead of its connection to the Great Sea Interconnector. [9] [10]

Smart meters

Approximately 365,000 smart meters have already been installed across the island.
Current Penetration Rate: With approximately 500,000 total electricity connection points in Cyprus, current penetration stands at ~73% of all electricity consumers. [11]

Support schemes

Electric Vehicles (EVs)
National EV Subsidy Programme (Dept. of Road Transport) [12]

Up to €9,000 for new Battery Electric Vehicles (BEVs); up to €7,500 for replacing an old vehicle with a BEV. (Note: A new long-term scheme running to 2030 is currently in preparation).

Purchase of M1 category passenger EVs. Commercial vehicles (taxis, rentals, company cars) are generally excluded.

PV Systems for EV Charging (RESEC Fund) [13]

Grants cover a mandatory PV installation plus optional additions: €375–€1,250/kW for PVs; up to €600 for a smart charger; up to €450 for three-phase upgrades.

Heat Pumps & Residential Upgrades
"Save – Upgrade" Residences (3rd Call) (MECI / THALIA 2021-2027) [14]

60% of eligible costs, rising to 80% for vulnerable households and mountain areas. Maximum grant cap is €32,000 per home.

Mandatory combined measures targeting a minimum 60% energy savings. Includes highly efficient air-to-air heat pumps (highly efficient AC units), solar thermal water heaters, wall/roof insulation, and PV. Applications open September 2026.

Solar Water Heating Systems (RESEC Fund) [15]

€500 flat grant for general applicants; €900 for vulnerable or mountainous households.

Replacing or installing new solar thermal water heaters.

Industrial & Business Electrification
Energy Efficiency Investments for SMEs and NGOs (RRP Cyprus) [16]

40% subsidy for SMEs (up to €300,000 total grant); 60% subsidy for non-profit organizations.

Upgrades to commercial buildings, manufacturing lines, commercial heat pumps/HVAC, and on-site renewables. Strict Condition: Must undergo a pre- and post-audit demonstrating a minimum 30% primary energy reduction.

Energy Upgrade & Competitiveness for Large Enterprises (RRP Cyprus) [17]

Grants ranging from €100,000 up to €1.5 million (typically 50% co-financed).

Deep energy renovations for large industrial operations, including high-capacity heat pumps for process heat, motor upgrades, and large-scale co-located solar + battery storage

Targets

Buildings

  • Cyprus has set a target of 39.4% renewable energy in the heating and cooling sector by 2030. [17]

Transport

  • Cyprus aims to have 85,000 electric vehicles on the road by 2030. [18]

Industry

  • +1.6% annual increase in renewable energy use [19]

Gaps and Challenges

Cyprus faces severe, isolated infrastructural bottlenecks to systemic electrification. Because the island lacks gas pipelines and is not physically interconnected with continental Europe, oil still represents a massive 80% of Cyprus’s electricity production. While solar generation has surged to 15.6% (with wind at 4%), the grid struggles with extreme afternoon congestion. Without sufficient utility-scale storage, this overproduction forced grid operators to waste clean energy, with solar curtailments nearly doubling from 167 GWh in 2024 to 306 GWh in 2025, a direct consequence of solar capacity reaching 1,040 MW against an average demand of only 650 MW.

The heat pump market is highly nascent.

Transport electrification is virtually non-existent, representing only a minor fraction of electricity consumption making the 2030 target of 85,000 EVs an immense climb.

Finally, while industry accounts for 12.9% of consumption, progress relies heavily on navigating complex subsidy audits (like the mandatory 30% reduction rule) rather than a mandated fuel-switching timeline.

Assessment

Buildings

Lacking

The heat pump market is small. The sector consumes 83% of Cyprus’s electricity, meaning residential and commercial heating/cooling demands remain highly reliant on an oil-heavy electricity.

Transport

Lacking

Electrification is virtually non-existent. This is severely off-track from the national 2030 target of 85,000 electric vehicles.

Industry

At risk

Businesses face rigid 30% reduction audit requirements to unlock energy efficiency grants, and there are no mandated fossil fuel phase-down timelines.

Power system

Lacking

Power generation remains severely fossil-dependent, with heavy fuel oil accounting for a massive 80% of Cyprus’s electricity mix due to a complete lack of gas pipelines and continental interconnections.

Grids

At risk

Severe grid congestion forces massive solar curtailment, which reached 306 GWh in 2025. Although smart meter penetration is strong (~73% or 365,000 meters), the lack of operational utility-scale battery storage and the physical isolation of the grid prevent efficient renewable integration.

Policy framework

At risk

Cyprus has set solid targets (e.g., 39.4% renewable heating/cooling and 85,000 EVs by 2030), but current progress lags drastically. Grid-level solutions like the Great Sea Interconnector and planned battery storage pipelines (e.g., TSO-CyTA) are desperately needed to make these targets viable.

  1. 1IEA, “Cyprus country profile, electricity”, accessible here.
  2. 2IEA, “Cyprus country profile, electricity”, accessible here.
  3. 3EHPA, “2025 European heat pump market report”, accessible here.
  4. 4Euronews, “Europe’s heat pumps replace Middle East gas imports twice over. Which country is leading the way”, accessible here.
  5. 5Odyssee-Mure, “Cyprus profile”, accessible here.
  6. 6European Commission, “Alternative Fuels Observatory, Cyprus”, accessible here.
  7. 7Cystat, “Cystat data base”, accessible here.
  8. 8Orestis Georgiou, “Why Cyprus is throwing away solar energy, and how we can fix it”, accessible here.
  9. 9Balkan Energy News, “Cyprus curtails as much renewable electricity in first half of 2025 as whole last year”, accessible here.
  10. 10Energy Storage News, “‘Strategic asset for energy security’: Cyprus regulator approves TSO owned battery storage”, accessible here.
  11. 11Politis, “Smart meters to bring time based electricity tariffs in Cyprus”, accessible here.
  12. 12Funding Programmes Portal (Republic of Cyprus), "Scheme for the Purchase of Electric Vehicles (H14)", accessible here. here
  13. 13Green Energy, "Grant Scheme for the Installation of Photovoltaic Systems for Charging of Electric and Plug-In Hybrid Vehicles (RESEC Fund)", accessible here. here
  14. 14Funding Programmes Portal (Republic of Cyprus), "Saving - Upgrading Houses Programme", accessible here here
  15. 15Funded.cy, "RESEC Fund Residential Renewable Energy and Solar Thermal Schemes", accessible here here
  16. 16Funded.cy, "Energy Efficiency Investments for SMEs and NGOs", accessible here. here
  17. 17Funded.cy, "Cyprus Energy Efficiency SME & Enterprise Grant Guide", accessible here. here
  18. 18European commission, “Cyprus - Final updated NECP 2021-2030” accessible here.
  19. 19Cyprus Mail, “Vafeades sets aim for 85,000 electric cars on Cyprus roads by 2030”, accessible here.
  20. 20European commission, “Cyprus - Final updated NECP 2021-2030” accessible here.