Cyprus Outlines Ambitious Energy Strategy to Become Key Eastern Mediterranean Player

Cyprus Forges Path as Eastern Mediterranean Energy Hub

Nicosia, Cyprus – President Nikos Christodoulides has unveiled Cyprus's comprehensive energy strategy, positioning the island nation to become a pivotal player in the Eastern Mediterranean's energy landscape. The strategy, articulated at the 13th Energy Symposium, focuses on three core pillars: increasing renewable energy penetration, exploiting natural gas deposits, and establishing crucial energy interconnections.

President Christodoulides emphasized that Cyprus aims to strengthen its energy security and regional influence, aspiring to serve as an alternative energy corridor to Europe. This ambition is underscored by the country's participation in the '3+1' mechanism with Greece and the United States.

Electricity Interconnections: Bridging Cyprus with Europe

A cornerstone of Cyprus's strategy is the development of electricity interconnections, particularly with Greece. The planned 'Great Sea Interconnector', formerly known as the EuroAsia Interconnector, is a high-voltage direct current (HVDC) subsea cable system designed to link the electricity grids of Israel, Cyprus, and Greece (Crete and Attica) with the broader European transmission network.

This ambitious project, spanning approximately 1,208 kilometers, is designated as a 'Project of Common Interest (PCI)' by the European Union. It aims to end Cyprus's energy isolation, with the Cyprus-Greece section expected to be completed in two phases: Pole One by 2028 and Pole Two by 2029. Cyprus has committed to an annual payment of €25 million to ADMIE, the Greek Independent Power Transmission Operator, until 2029 to support the project.

Natural Gas Exports: Targeting 2027

A significant milestone in Cyprus's energy plan is the projected first export of natural gas by 2027. This will primarily involve gas from the Cronos deposit in Block 6 of Cyprus's Exclusive Economic Zone (EEZ), transported via the Kronos-Damietta infrastructure to Egyptian liquefaction facilities for onward export to Europe.

Recent discoveries have bolstered Cyprus's gas reserves. The Pegasus and Glaucus fields in Block 10, operated by ExxonMobil and QatarEnergy, are estimated to hold around 20 trillion cubic feet (tcf) of natural gas. The Aphrodite field in Block 12 also holds an estimated 4.5 tcf. A final investment decision for the development of the Cronos field is anticipated by the end of 2025.

While the Vasilikos LNG terminal project has faced delays and is currently under investigation by the European Public Prosecutor's Office, efforts are underway to ensure its completion, with the latest estimate for full operation by April 2026.

Renewable Energy and Regional Cooperation

President Christodoulides also highlighted the importance of increasing the penetration of renewable energy sources, noting that they currently account for 23% of Cyprus's electricity. The government is investing €114 million in transmission and distribution upgrades, energy storage projects, and the creation of energy communities, with Tillyria serving as a pilot program.

Further demonstrating its commitment to regional energy cooperation, President Christodoulides is scheduled to visit Lebanon on November 26 for discussions focused solely on energy matters.