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- Cyprus aims to cut energy poverty by 10% by 2030 through lower energy costs, home efficiency improvements and broader access to clean energy.
- More than 30,000 vulnerable households receive reduced electricity rates through the Special Residential Electricity Tariff, offering discounts of around 20%.
- The government plans new targeted grants for energy-poor households, potentially covering up to 100% of eligible costs for upgrades or staged improvements.
- Cyprus expects about €100 million from the Social Climate Fund to accelerate home upgrades, cleaner technologies and affordable energy solutions.
Almost 15% of households in Cyprus are affected by energy poverty, according to the country’s final National Energy and Climate Plan, Energy Minister Michalis Damianos said on Tuesday.
The plan sets an indicative target of reducing energy poverty by 10% by 2030, through measures aimed at lowering energy costs, improving the energy efficiency of homes and expanding access to affordable clean energy.
Speaking at a conference on tackling energy poverty in Nicosia, Damianos said the government was strengthening its policies through targeted support and long-term planning.
He stressed the need to improve the targeting of assistance and ensure that no affected household is left behind.
More than 30,000 households benefit from reduced electricity rates
Damianos said the government was continuing to implement measures to support vulnerable consumers and reduce household energy needs.
More than 30,000 vulnerable households benefit from the Special Residential Electricity Tariff, which provides discounts of around 20% on electricity charges.
Government grant schemes also offer support covering up to 80% of eligible costs for home energy upgrades for vulnerable households.
Additional grants are available for measures such as installing photovoltaic systems, with subsidies covering up to 100% of eligible costs, replacing solar water heaters and purchasing more energy-efficient household appliances.
The minister said new targeted grant schemes were being developed for households affected by energy poverty. These could cover up to 100% of eligible costs and support either comprehensive home upgrades or individual improvements carried out in stages.
The approach follows the principle of prioritising energy efficiency before investing in renewable energy systems.
New framework to monitor energy poverty
Damianos said the Energy Efficiency Law of 2026 had introduced a formal definition of energy poverty into national legislation.
The definition takes into account several factors, including financial hardship, insufficient disposable income, high energy expenditure and poor energy efficiency in homes.
On 8 July 2026, the Cabinet also approved the establishment and structure of a National Governance System for Energy Poverty.
The framework includes plans for a National Observatory made up of public bodies to monitor and assess the problem annually, a network of experts to support policy development and the creation of Local Energy Hubs.
Under the revised EU Energy Efficiency Directive, Cyprus must also ensure that 15.1% of its overall national cumulative energy savings obligation by 2030 is achieved through energy-efficiency measures targeting households affected by energy poverty, low-income households, vulnerable customers and people living in social housing.
€100 million in funding for energy measures
The minister said Cyprus would also make use of European funding mechanisms to support households.
Around €100 million, including the national contribution, is expected to be mobilised through the Social Climate Fund.
The funding will help accelerate home energy upgrades, promote cleaner technologies and improve access to affordable energy solutions for households affected by energy poverty.
Damianos also highlighted the potential of energy communities and renewable energy communities to give citizens a greater role in the energy transition.
Athens mayor links electricity cable to lower bills
Athens Mayor Haris Doukas said the proposed Great Sea Interconnector (GSI), linking Cyprus and Greece, was directly connected to efforts to tackle energy poverty in Cyprus.
He claimed that the electricity link would lead to a 19% reduction in electricity prices in Cyprus.
Doukas also said the project could generate annual savings of up to €138 million for consumers in Greece and Cyprus combined.
He said the interconnection would strengthen the stability of the electricity system, allow greater integration of renewable energy and enable the import of cheaper electricity.
Cyprus remains the only EU member state without an electricity interconnection with another country, he noted.
Presenting measures implemented by the Municipality of Athens, Doukas referred to support for vulnerable residents, including exemptions from municipal fees.
He also highlighted the Athens Energy Portal, a platform monitoring energy consumption and emissions in public buildings, with the aim of reinvesting savings for the benefit of vulnerable citizens.
Other initiatives include the municipality’s Office for Tackling Energy Poverty, which identifies and maps affected households and provides advice and targeted support, as well as an Energy Benefit Card offering eligible households access to support services and benefits.
Nicosia calls for targeted local support
Nicosia Mayor Charalambos Prountzos said local authorities had a key role in identifying and supporting households affected by energy poverty.
He called for the creation of an Energy Poverty Register and a detailed assessment of needs at municipal level, arguing that support should be based on reliable data and reach those most in need.
The Municipality of Nicosia has also proposed a one-stop shop for energy poverty, linked to its social services, to provide information, guidance, energy advice and assistance with grant schemes and funding opportunities.
Prountzos highlighted the importance of energy communities, which could allow households to benefit from the energy transition even if they cannot afford to install their own photovoltaic systems.
He cited the Lefkothea Citizens’ Energy Community, established through an initiative involving the municipalities of Nicosia, Lakatamia and Latsia-Geri.
Nicosia is also participating in the European LIFE EP-MED project, which provides access to expertise, tools and good practices for monitoring and tackling energy poverty.
The mayor additionally called for a dedicated Energy Poverty Fund and closer cooperation between central government and local authorities to finance home energy upgrades, the replacement of energy-intensive appliances and other energy-saving measures.
He said the energy transition could only succeed if it was fair and inclusive, ensuring that all citizens could benefit.
Also read: Cyprus allocates €150m for digital projects in 2027
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