Cyprus Audit Reveals Issues with Cyprus solar power monopoly
A damning report from Cyprus’s Audit Office has cast a harsh light on the nation’s renewable energy sector, revealing that a push for green energy has resulted in a near-monopoly for private enterprises in large-scale solar power development. The findings suggest that regulatory decisions and institutional inaction have sidelined the state-owned Electricity Authority of Cyprus (EAC), ultimately leaving consumers to foot the bill with soaring electricity prices.
A Startling Disparity and the Cyprus solar power monopoly
The core of the audit report, as detailed by the Cyprus Mail, lies in the stark numbers. Between 2020 and 2024, the vast majority of new renewable electricity capacity was awarded to private investors. These private firms now operate approximately 420 megawatts of solar and wind farms. In stark contrast, the state-owned EAC controls a mere 20 megawatts.
This imbalance wasn’t accidental. The report highlights critical actions by the Cyprus Energy Regulatory Authority (Cera) that effectively paved the way for private dominance. From 2019 to 2022, Cera instructed the EAC to halt its own renewable projects pending regulatory reviews. Furthermore, a 2022 draft decision signaled Cera’s intent to deny future large-scale project licenses to the EAC, citing the need to prevent market power abuse and foster competition—a goal the audit suggests has backfired.
Compounding the issue was the failure of previous EAC boards to act decisively as private companies were rapidly acquiring land and securing the necessary permits for development.
The High Cost of the Cyprus solar power monopoly for Consumers
The consequences of this market structure are being felt directly in the pockets of Cypriot households and businesses. According to Eurostat data cited in the report, as of mid-2024, Cyprus had the second-highest electricity prices in the European Union when measured against purchasing power.
The Audit Office squarely criticizes the prolonged period of non-cooperation between Cera and the EAC. This breakdown in governance, it argues, created a favorable environment for private developers at the direct expense of consumers. The report also pointed to other systemic issues, including a reliance on negotiated tenders, poor customer service, and weak internal controls within the energy sector.
For its part, Cera has defended its actions, maintaining that they were necessary safeguards to ensure the development of a competitive wholesale energy market. However, the audit’s findings raise serious questions about whether these policies have achieved their intended outcome or simply swapped a public utility’s control for a private one, without the expected benefits of competition for the public.
The revelations from this audit demand a thorough review of Cyprus’s energy policy. As the nation continues its transition to renewable sources, the challenge will be to balance green energy goals with market fairness and, most importantly, affordability for the consumers it is meant to serve.
