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- The scheme will be split into €10 million for 2027 and €10 million for 2028, with consultation on the draft guide already completed.
- At Vasilikos, the Central Firefighting System is due in February 2027, while the LNG terminal tender has advanced to the next stage after eight companies participated.
- Damianos said businesses had received more than €151 million in grants since 2021, covering nearly 5,500 applications across support programmes.
- Larnaca business leaders urged faster progress on the port and marina, alongside improvements to infrastructure, licensing, industrial areas and healthcare services.
The government is preparing a €20 million energy storage grants scheme to help businesses in Cyprus install battery systems alongside photovoltaic installations, Energy Minister Michalis Damianos has announced.
Speaking at the Annual General Meeting of the Larnaca Chamber of Commerce and Industry (LCCI), Damianos said the scheme would support businesses that already have, or plan to install, photovoltaic systems for self-consumption.
The proposed budget is €20 million, with €10 million allocated for 2027 and a further €10 million for 2028.
Consultation on the draft scheme guide has been completed, and the ministry aims to announce the scheme as soon as possible.
The scheme is intended to help businesses make more effective use of the electricity they generate, reducing their dependence on the grid and lowering operating costs.
Vasilikos projects and LNG terminal timeline
Damianos highlighted Larnaca’s strategic role in Cyprus’ energy and industrial planning, with particular emphasis on Vasilikos.
The Central Firefighting System at Vasilikos is expected to be completed in February 2027. Work is also under way to establish a governance body for the Energy Centre, with the aim of improving its supervision and management.
Regarding the liquefied natural gas (LNG) import terminal at Vasilikos, the minister said the first phase of the new tender was completed in early October, with eight companies participating.
The selection of companies invited to proceed to the next phase is expected by the end of 2026, while the contract is expected to be awarded before summer 2027.
Damianos said the terminal’s operation would help diversify energy supplies, strengthen energy security, reduce emissions and lower electricity prices.
Improvements planned for Larnaca’s industrial areas
The minister said Larnaca has four industrial areas, containing 333 industrial plots and approximately 231 tenants.
He announced planned improvements to parking facilities in the Aradippou Industrial and Commercial Area and the Larnaca Industrial Area. Tenders will also be launched for the sale of four factory buildings across the two areas.
More than €151m paid to businesses since 2021
Damianos said €352 million had been secured for business support schemes under the 2021–2027 programming period. These cover areas including energy and digital upgrades, manufacturing, entrepreneurship and the circular economy.
From the beginning of 2021 until the end of September 2026, the ministry had paid out more than €151 million, meeting almost 5,500 grant applications.
Of this amount, €113 million was provided through the THALEIA programme and €38 million through the Recovery and Resilience Facility.
Regarding entrepreneurship, the minister said 1,021 beneficiaries had been approved under the 2021 and 2024 calls, which had a combined budget of €50 million.
By the end of June 2026, €19.9 million had been paid to 334 businesses.
The ministry is also preparing a new, simplified grant scheme exclusively for young people aged 18 to 35. Its launch is planned for the first quarter of 2027.
Cyprus exports record growth
Turning to exports, Damianos said exports of domestic products, excluding mineral fuels and petroleum products, reached €1.37 billion in 2025, marking a 10% increase compared with 2024.
Exports of services rose by 6% to €32 billion.
He added that the Export Helpdesk and the Republic of Cyprus’ network of Trade Centres cover almost 50 countries, supporting Cypriot businesses seeking to expand their international presence.
The minister also referred to the new Business and Talent Attraction Strategy for 2027–2030, which is expected to be submitted to the Council of Ministers in December, with implementation planned for 2027.
Damianos said Larnaca had significant advantages, an active business community and considerable potential for further development.
“The challenge is to make use of this momentum through specific projects, better infrastructure and targeted support,” he said, describing the Larnaca Chamber as a key partner in this effort.
Larnaca Chamber calls for progress on port and marina
LCCI President Dr Nakis Antoniou stressed the need to move forward with major development projects in Larnaca, particularly the port and marina.
He also highlighted the potential of the old airport site for aircraft maintenance, repair and overhaul (MRO) activities. He said Larnaca’s share of tourist arrivals in Cyprus reached 15.4% in 2025, placing the district third nationwide.
Regarding the port and marina, Antoniou said Larnaca had received numerous promises and waited long enough. He called for specific decisions, clear timetables and meaningful progress.
He expressed confidence in the President of the Republic and said he expected commitments to be implemented, stressing that Larnaca deserved equal development opportunities without other districts receiving preferential treatment.
He welcomed the start of the Larnaca Airport expansion works and raised the issue of using the old airport for MRO activities.
Businesses belonging to the Chamber had already invested in facilities, equipment, expertise and specialised staff, he said, expressing hope that decisions would allow Larnaca to become a regional centre for the sector.
Antoniou also called for improvements to the Larnaca–Dhekelia road and action to address traffic, parking and public transport problems, alongside better infrastructure for pedestrians and cyclists.
Land of Tomorrow and industrial development
Referring to the Land of Tomorrow project, Antoniou described it as a major investment that could transform the city by attracting further investment, creating jobs and strengthening services and tourism.
However, he stressed that planning and environmental requirements must be respected and that the project should deliver benefits for the local community.
He also described industry, trade and logistics as strategic pillars of Larnaca’s economy.
The Chamber has established management committees in all industrial areas across the district to represent businesses and raise their concerns with the relevant authorities.
Antoniou called for the upgrading of industrial areas, better infrastructure and access, and the creation of new spaces for industrial, technological and logistics activities.
Proposals for aviation training and healthcare
On education and innovation, he referred to the Cyprus University of Technology’s School of Marine Sciences in Larnaca and the Cyprus Marine and Maritime Institute (CMMI), which is active in maritime research and innovation.
He also presented a proposal to establish an Aircraft Engineering School in cooperation with UCLan Cyprus and aviation businesses. The aim would be to connect education and research with labour market needs.
On healthcare, Antoniou said Larnaca faced shortages in medical infrastructure, specialised staff and diagnostic services.
He called for the upgrading of Larnaca General Hospital, strengthening of its Accident and Emergency Department, and improvements to equipment and staffing. Private medical centres, he said, could complement public healthcare services.
The LCCI president also noted that businesses continued to face rising operating and energy costs, labour shortages and international uncertainty.
He called for simpler procedures, a stable institutional framework and meaningful support for small and medium-sized enterprises.
The Chamber’s priorities include accelerating major projects, improving the business environment and licensing procedures, strengthening trade and industry, developing tourism and linking education more closely with the labour market.
He also stressed the importance of international cooperation and better services for Chamber members, with measurable results as the ultimate goal.
Business leaders urge government to accelerate projects
Cyprus Chamber of Commerce and Industry (CCCI) President Stavros Stavrou also called for major development projects in Larnaca to be accelerated, particularly the port and marina.
He expressed concern that renewed complications following the Legal Service’s intervention in the tender process could prolong delays and uncertainty. He called on the government to clarify how the project would proceed.
Stavrou said Larnaca needed to move from planning to implementation, with clear timetables, faster procedures and the attraction of quality investment.
Larnaca District Local Government Organisation President Angelos Hadjicharalambous also described the port and marina development as strategically important for the economy, tourism and employment.
He said clear planning, coordination and compliance with government-announced timetables were essential, adding that the city needed concrete steps and meaningful progress.
He also called for improvements to licensing procedures, including clearer processes and the timely examination of applications. Reducing bureaucracy and avoiding unjustified delays were essential for investment, particularly for large and complex developments.
Hadjicharalambous highlighted cooperation between the district organisation and the LCCI, saying the Chamber’s knowledge of the market could help identify problems and develop practical solutions to improve the licensing system.
Larnaca mayor rejects further delays
Larnaca Mayor Andreas Vyras said the municipality and the Chamber would continue working together to push for the immediate promotion of the port and marina development.
He stressed that the city could not accept further stagnation and unjustified delays, describing the project as crucial to Larnaca’s development.
Vyras also referred to cooperation between the municipality and the Chamber on relocating petroleum and liquefied petroleum gas (LPG) facilities, strengthening the city’s university presence through the Cyprus University of Technology’s new School of Marine Sciences, Technology and Sustainable Development, and supporting the Larnaka 2030 initiative.
Regarding the city’s development, he said a recent municipal council report had presented 30 projects with total expenditure approaching €100 million. These projects have either been completed, are under way or are being promoted for the coming years.
Also read: Businesses in Cyprus face some of the highest electricity prices in the EU
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