Cyprus is struggling to chart a coherent energy future, with no integrated long-term strategy in place despite intensifying pressures from rising costs, climate commitments, and regional tensions, a leading expert has warned.
Andreas Poullikkas, former chief of the Cyprus Energy Regulatory Authority (CERA), laid out the island nation’s predicament in a recently published analysis, describing energy as “one of the most complex issues of our time.” He argued that energy policy extends far beyond simple production and consumption, intersecting with security of supply, household costs, infrastructure investment, climate obligations, and geopolitical stability — forces that pull policy in multiple directions at once. According to Poullikkas, this complexity is not a mere detail but the core problem in energy policy design.
“Some look at the bill at the end of the month, others focus on new generation units, others worry about emissions and others about strategic autonomy,” he said. The competing priorities make it difficult to craft a coherent, forward-looking plan. In Cyprus, the challenge is amplified by the country’s physical and political geography.
The Complexity of Energy Policy
To illustrate the competing forces, Poullikkas used a triangle analogy. Energy sits at the center, where households, the economy, and global power dynamics all intersect. Each corner pulls policy in a different direction, he explained, and imbalances lead to systems that serve narrow interests rather than citizens.
The expert stressed that Cyprus has not yet shaped a truly integrated and long-term energy strategy that answers a fundamental question: Who will take binding decisions for decades ahead, and on what basis? The country currently operates as an island grid without interconnections for the time being, relying heavily on imported fuels.
This isolation makes energy supply a matter of national security. At the same time, Cyprus faces decarbonisation obligations under international climate agreements while also debating potential hydrocarbon development in the Eastern Mediterranean. The discovery of natural gas reserves in surrounding waters has added a layer of geopolitical tension to these technical needs, further complicating the decision-making process for policymakers.
A Divided Island’s Energy Dilemmas
Cyprus’s geography and history amplify the stakes. The island sits at a crossroads between Europe, Africa, and Asia, a strategic location that has attracted successive foreign powers.
After centuries of Ottoman rule, the United Kingdom took administration in 1878, and Cyprus gained independence in 1960 following nationalist violence. However, internal conflict between Greek and Turkish communities persisted. A coup in 1974 led to a Turkish invasion, which resulted in the division of the island.
Today, a United Nations Buffer Zone separates the Republic of Cyprus from the north. This division makes energy policy uniquely fraught.
Because the country is an island, it cannot easily connect its power grid to neighbors, forcing a reliance on imports. The unresolved political status of the north and the ongoing dispute over maritime boundaries with Turkey further complicate efforts to develop offshore hydrocarbons. The dual pressures of decarbonisation — requiring a shift away from fossil fuels — and the potential revenue from gas exploration pull policy in opposite directions.
Without a clear strategic framework, Poullikkas warned, decisions are made piecemeal, serving short-term interests rather than the long-term well-being of Cypriot citizens. The consequences of this strategic vacuum are already visible.
Household energy costs remain high, infrastructure investments are delayed, and the country risks falling behind on its climate targets. Meanwhile, regional tensions over energy resources show no sign of easing. As Poullikkas noted, energy policy touches every facet of national life — from monthly bills to national security — and Cyprus cannot afford to navigate its future without a clear map.
