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Cyprus is once again paying heavily for its reliance on fossil fuels. The cost of carbon emissions tied to electricity generation has already surpassed €200 million this year, a figure that continues to climb as carbon prices remain higher than in 2024.
From Jan. 1 through Oct. 18, 2025, power producers in Cyprus emitted an estimated 2.55 million metric tons of carbon dioxide equivalent, resulting in a total cost of about €203.8 million, according to official data. That sum is ultimately passed on to households and businesses through their electricity bills.
The country’s heavy dependence on oil-based generation has once again placed it among Europe’s biggest spenders in the EU Emissions Trading System.
Carbon prices remain elevated
Throughout 2025, the price of carbon allowances has fluctuated between €61 and €84 per metric ton, settling near €80 in mid-October, roughly €10 higher than at the end of last year. In 2024, Cypriot power stations emitted 3.28 million tons of CO₂ equivalent, incurring a total cost of nearly €230 million.
Cyprus ranks high in EU emissions growth
Eurostat figures show Cyprus recorded an 8.3% increase in greenhouse gas emissions in the first quarter of 2025 compared with the same period in 2024, the third-largest jump in the European Union, trailing only Bulgaria and the Czech Republic.
Year-by-Year Emissions Costs Passed to Consumers (Source: cyprusgrid.com):
Year - Cost (€)
2018 - 38,835,819
2019 - 67,194,678
2020 - 74,556,787
2021 - 165,406,794
2022 - 248,082,268
2023 - 256,428,825
2024 - 229,938,049
2025 - 203,825,400 (as of Oct. 18)
Total: €1.28 billion
Electricity among Europe’s most expensive
This emissions burden continues to inflate power prices, leaving Cypriot consumers with the highest electricity costs in Europe, according to monthly data from European regulators. When adjusted for purchasing power, Cyprus ranks as the sixth most expensive country in the EU for household electricity, as of September 2025.
Renewable energy wasted as curtailments surge
While fossil fuels remain the dominant source of electricity, the transition to cleaner energy has been slowed by a series of setbacks — including the stalled introduction of natural gas and limitations within the national grid. Technical bottlenecks at Electricity Authority of Cyprus (EAC) plants, frequent equipment failures, and the absence of large-scale energy storage have prevented the system from absorbing all available renewable energy.
As a result, renewable energy curtailments, the portion of potential green electricity that goes unused, are projected to jump to 43% in 2025. That marks a sharp rise from 2024, when about 167,000 megawatt-hours were wasted, representing 29% of total renewable generation.
With information from 24news.
