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Cyprus has officially opened its electricity market to competition. On paper, that should mean more choice, more transparency, and, eventually, lower prices. In reality? Consumers are still waiting to feel any real relief in their bills, and the system itself is under growing strain.
That’s the blunt message from Stavros Stavrinos, executive director of the Cyprus Transmission System Operator (CTSO), in an interview with Kathimerini’s Dorita Yiannakou. While he says the market is now far more transparent, he also warns that delays in key energy projects, an aging power grid, and the lack of storage are holding everything back, including cheaper electricity.
Transparency is up, but cheaper power isn’t (yet)
According to Stavrinos, one of the biggest changes brought by the competitive market is transparency. Every day, electricity prices in the wholesale market are published every half hour, showing exactly how much energy costs based on supply and demand.
In simple terms:
- The pricing data is there, and it’s public.
- Investors and suppliers can now see when electricity is cheap and when it’s expensive.
But here’s the catch: this transparency exists mainly at the wholesale level, not at the level consumers see on their bills.
Why consumers aren’t seeing lower prices
Stavrinos makes it clear that competition in the wholesale market does not instantly translate into cheaper household electricity.
Suppliers still need time to:
- Study price fluctuations
- Design smarter pricing plans
- Offer different tariffs for different times of day
Think cheaper power at midday and more expensive in the evening, like what already happens in many European countries. Cyprus isn’t there yet.
And crucially, the CTSO says it cannot predict when suppliers will be ready to roll out these new pricing models. In other words, there’s no deadline, no countdown, and no guarantees.
The elephant in the room: gas and interconnection delays
One of the most triggering admissions in the interview is this:
Cyprus’ entire energy future is stuck in limbo because two major projects have no clear timeline.
Those projects are:
- The arrival of natural gas for power generation
- The long-awaited electricity interconnection with other countries
Both are expected to radically change how electricity is produced and priced. But because their schedules are still vague and non-binding, investors are hesitant, and long-term planning is almost impossible.
Bottom line: uncertainty is freezing progress.
Too much solar, not enough flexibility
Yes, Cyprus has made big strides in renewable energy, especially solar. But Stavrinos warns this rapid growth has created a new problem.
At midday, solar panels produce far more electricity than the country actually needs. The result?
- Widespread cuts in renewable energy production
- Even households with solar panels see their power curtailed
Then, just hours later, during the afternoon and evening peak, the system scrambles to meet demand, firing up old, expensive, conventional power plants.
This back-and-forth is costly, inefficient, and environmentally frustrating.
Storage: the missing piece of the puzzle
According to Stavrinos, energy storage is the game-changer Cyprus desperately needs.
Storage systems would:
- Save excess solar power produced at midday
- Release it in the evening when demand spikes
- Reduce reliance on old, polluting power plants
- Cut costs and greenhouse gas emissions
Right now, Cyprus lacks that flexibility, and it’s becoming a serious risk to system stability.
The good news?
A central storage system managed by the state is already in the works and is expected to be completed by 2026. Private investors are also lining up to install storage, with dozens of applications already submitted.
An ageing grid under pressure
Another uncomfortable truth from the interview:
Cyprus’ electricity system is being pushed to its limits.
Old conventional units combined with unpredictable renewable production have already led to situations where the system struggled to stabilize. And Stavrinos warns these incidents are becoming more frequent.
Without storage and grid upgrades, competition remains limited, and so do price reductions.
Who does what in Cyprus’ energy maze
Stavrinos also clears up a common source of confusion:
- The CTSO operates the transmission system and the wholesale market
- The Cyprus Energy Regulatory Authority (CERA) regulates the market and oversees fair competition
- The Electricity Authority of Cyprus (EAC) competes like any other supplier in generation and supply, while still controlling monopoly activities like transmission and distribution, under strict regulation
In theory, the roles are clearly defined. In practice, cooperation is crucial, and delays ripple across the entire system.
The takeaway
Cyprus’ electricity market is more transparent than ever. But transparency alone doesn’t lower bills.
Until gas arrives, interconnection happens, storage systems come online, and the grid becomes more flexible, consumers will keep asking the same question:
“If the market is open, why am I still paying so much?”
For now, the answer is uncomfortable and unfinished.
