Nicosia, Cyprus. Cypriot businesses are still grappling with high energy costs, with employers’ federation Oev warning the issue remains a major threat to competitiveness as the country pursues its green transition.
Report ahead of annual general meeting
In a report issued ahead of its annual general meeting on April 28, Oev said 2025 was marked by major developments in energy and the environment, as Cyprus sought to stay on course with national and EU climate neutrality goals while facing rising cost pressures and mounting environmental risks.
Oev said it remained actively involved in shaping policy on energy, the environment and sustainable development, aiming to support businesses and ensure what it described as a fair and realistic green transition.
Electricity market and storage
Among the year’s key developments, Oev pointed to the full operation of the competitive electricity market, saying this should, over time, strengthen competition and lead to more efficient pricing.
It added that electricity storage projects have become increasingly important for improving system flexibility, cutting curtailments and allowing greater use of renewable energy sources.
Great Sea Interconnector and alternative options
Oev said the Great Sea Interconnector remained high on the public agenda, describing it as a project of major strategic significance but also one surrounded by technical, financial and geopolitical uncertainty.
It said it had closely followed developments and called for greater transparency, a proper cost-benefit assessment, and parallel consideration of alternative energy options that could protect the economy’s competitiveness.
Natural gas infrastructure and green hydrogen
On natural gas, Oev said developments linked to the floating storage and regasification unit (FSRU) Prometheas and related infrastructure again highlighted the fuel’s importance as a transitional solution that could help lower energy costs and emissions.
At the same time, it stressed the need for the necessary infrastructure to be completed without further delay so gas can be integrated effectively into the country’s energy mix.
The federation also attached particular importance to green hydrogen, saying it is gaining ground in both European and national decarbonisation strategies.
What measures do you think would most effectively reduce energy costs for businesses in Cyprus?