Cyprus electricity prices spark calls for value chain audit

Debate is intensifying in Cyprus regarding high electricity prices and the role of solar energy in the national power grid. Following an initiative by MEP Fidias Panayiotou to reduce electricity costs by 20 per cent, calls have been made for an independent regulatory and economic audit of the entire electricity value chain.

Cyprus currently possesses over 1,055MW of photovoltaic capacity. Data from April 2026 indicates that approximately 60 per cent of this installed capacity operates under schemes designed for self-consumption, such as net metering and net billing. Only about 326MW is intended for the competitive electricity market.

Experts suggest that focusing solely on the returns of commercial solar parks may overlook the broader issue. To understand why Cyprus maintains some of the highest electricity prices in Europe despite abundant solar resources, an audit must examine all costs, including conventional oil-fired generation, fuel, CO2 emission allowances, network costs, and investor returns.