Moving to a green interconnected market-based energy model for Cyprus • Without swift and drastic action in the energy sector, humanity faces a future of dire climatic consequences and instability.

• Cyprus is heavily relying on fossil fuels; only 15% of Cyprus’s electricity was generated by renewables in 2021. Regarding its grid interconnectivity, Cyprus is not currently interconnected with other countries, although there are plans for the EuroAsia Interconnector to become operational in 2026. A competitive electricity model is also expected to be introduced in Cyprus by the end of 2022.

• Norway, which is interconnected with other countries, heavily relying on renewables and using a market-based and flexible energy model, holds important lessons for Cyprus.

• Moving toward a green interconnected market-based model requires current plans to be realised and further arrangements to be made. Some key elements of such a model are the following: physical interconnectivity, energy storage installations, electric power grid upgrade, full liberalisation of the electricity market, cross-border trading, and transparency.

• Such a model will generate benefits for Cyprus, including lower CO2 emissions, energy supply security, and lower electricity costs.

• The average electricity consumer could save €200 per year off energy bills.