Serious concerns about the high production costs and delays in developing Renewable Energy Sources by the Electricity Authority of Cyprus (EAC) are causing strong reactions in the market and public opinion.
The report highlights that EAC lags behind in integrating RES into its production mix compared to the private sector, despite efforts to liberalize the electricity market and incentives for investments in photovoltaics and other clean energy sources. By September 2025, the public authority had only four photovoltaic parks with a total capacity of 20MWp, compared to a total installed capacity of approximately 420MWp in the network — with the vast majority owned by private investors.
The findings note that the delay in integrating RES projects into EAC’s production has given an advantage to private companies, without this leading to a significant reduction in prices for consumers. According to the report’s data, about 420MW from renewable energy projects are currently controlled by private entities, compared to just 20MW managed by EAC, shifting the burden of green production to the private sector.
One of the most indicative points emphasized by the Audit Office is the high cost borne by consumers for greenhouse gas emission rights. From 2020 to 2024, the total expenditure for purchasing emission rights amounted to approximately €955 million, of which €211.2 million pertains only to 2024, and this cost is directly passed on to household and business electricity bills.
The report also points out that Cyprus remains one of the most expensive in the European Union concerning purchasing power for electricity, due to a combination of factors such as high fuel costs, lack of natural gas, insufficient energy storage infrastructure, and continued operation of old thermal units without modern environmental compliance licenses. The report not only focuses on energy production but also highlights structural and operational weaknesses within EAC, such as inadequate meter checks, unanswered 384,702 customer calls between 2022–2024, contract management issues, and operational gaps in internal control.
The auditors emphasize the need for immediate and coordinated policy and regulatory interventions from the state, CERA, and EAC, aiming at accelerating energy transition, enhancing competition, and above all, reducing electricity costs for consumers.
According to the Audit Office report “the prolonged lack of substantial dialogue and necessary cooperation between EAC and CERA for developing RES projects by EAC has benefited private interests active in RES development at the expense of the final consumer.” However, this raises serious questions:
- How can the Cyprus Energy Regulatory Authority, as the legally supervising authority, collaborate with any entity it has licensed to participate in the electricity market, such as EAC?
- How exactly did private interests benefit? Was anything improper done?
- How did this situation work against the consumer?
The Audit Office report does not answer any of these questions.
Continuing its position recording, the Audit Office notes that “EAC’s difficulties in integrating more RES projects prevented it from achieving production cost reduction.” The significant delay in integrating RES projects into EAC’s production capacity gave private enterprises an advantage to develop large photovoltaic projects occupying many available land areas without benefiting consumers from these companies entering the market.” It is clearly implied that state auditors agree with EAC that they were delayed so that private enterprises could develop RES projects where there was available land and operate in the electricity market at consumers’ expense (price). However, documentation is also absent here.
EAC’s Access to RES
Simultaneously, it requires explanation from authorities why the following facts do not align with positions recorded by the Audit Office:
- EAC is contracted with RES technologies (photovoltaic, wind, biomass) providing cumulatively around 21% of Cyprus’s total electricity production. Private companies have a production ratio of less than 7%.
- If excluding Net Metering plan, EAC can purchase from top RES technologies with a total installed capacity of 416MW at a tariff of 11 cents per kilowatt-hour. How much has it reduced generation costs at its plants?
- CERA published that EAC holds licenses for photovoltaic parks with a total installed capacity of 171.9MW, most granted in 2021 and 2023. Currently, as noted, 23MW are operational. No application rejection by the Organization has been published. A prerequisite for license issuance is securing land use.
- The presence of private electricity supply companies currently provides end consumers with prices averaging 8% lower than EAC Supply. A reduction benefiting commercial and industrial consumers – clients of private suppliers – functions chain-like favorably for the economy. This element is not mentioned by Audit Office in its report.
EAC attributed its project implementation delays to Urban Planning and private enterprises’ lead contributing to network saturation and suitable available land for RES. Given that private applicants also approached Urban Planning seeking suitable land simultaneously, it requires explanation from Audit Office why they succeeded while Electricity Authority did not.
