The Green Pivot: Cyprus and the regional energy market

Cyprus currently relies heavily on fossil fuels and suffers from energy isolation and high electricity costs. The report proposes a 'green pivot' involving grid interconnectivity via projects like the EuroAsia Interconnector, the liberalisation of the electricity market through the 'Net Pool' model, and increased investment in solar power and energy storage. By comparing Cyprus to the successful Nordic model, the authors suggest that physical interconnectivity and market transparency could reduce CO2 emissions and lower annual electricity bills for the average consumer by approximately €200.

• Cyprus is heavily dependent on fossil fuels for electricity, with renewable energy sources (RES) accounting for only 15% of generation in 2021. The country aims to increase this share to 30% of electricity consumption by 2030, primarily through solar power.
• Cyprus is currently energy-isolated, but the EuroAsia Interconnector—a 1,208 km subsea HVDC cable connecting Israel, Cyprus, and Greece—is planned to become operational in 2026 to end this isolation and improve energy security.
• Significant natural gas reserves have been discovered in Cyprus's exclusive economic zone (EEZ), including the Aphrodite, Calypso, Glaucus, and Cronos-1 fields. The Aphrodite field is expected to operate by 2026/2027, likely transporting gas to Egypt for liquefaction and export.
• Cyprus is transitioning toward a competitive electricity market using the 'Net Pool' model, which is similar to the Nordic Nord Pool model. Full liberalisation is expected by the end of 2022, though the Electricity Authority of Cyprus (EAC) currently maintains a dominant position.
• A transition to a green interconnected market-based model could lead to substantial socio-economic gains, including a projected annual saving of €200 on electricity bills for the average consumer due to economies of scale and increased competition.
• The report identifies three primary challenges to Cyprus's energy transition: the small size of its energy market which limits competition, the high technical cost and difficulty of subsea grid interconnection, and regional geopolitical tensions in the Eastern Mediterranean.

APA

Peace Research Institute Oslo (2022). The Green Pivot: Cyprus and the regional energy market. https://cdn.cloud.prio.org/files/6f56d878-3368-45be-976e-cdf224edf1bd/Alma Economics_The Green Pivot1 1.pdf?inline=true

Chicago

Peace Research Institute Oslo. The Green Pivot: Cyprus and the regional energy market. 2022. https://cdn.cloud.prio.org/files/6f56d878-3368-45be-976e-cdf224edf1bd/Alma Economics_The Green Pivot1 1.pdf?inline=true.

Wikipedia

{{cite report |author=Peace Research Institute Oslo |title=The Green Pivot: Cyprus and the regional energy market |date=September 2022 |url=https://cdn.cloud.prio.org/files/6f56d878-3368-45be-976e-cdf224edf1bd/Alma Economics_The Green Pivot1 1.pdf?inline=true |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{peaceresearchinstituteoslo2022green, author = {{Peace Research Institute Oslo}}, title = {{The Green Pivot: Cyprus and the regional energy market}}, institution = {Peace Research Institute Oslo}, year = {2022}, month = sep, url = {https://cdn.cloud.prio.org/files/6f56d878-3368-45be-976e-cdf224edf1bd/Alma Economics_The Green Pivot1 1.pdf?inline=true}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }