Thursday, 29 May, 2025
Cyprus, an island nation in the Eastern Mediterranean, is strategically positioned at the crossroads of Europe, Asia, and Africa. As of 2024, Cyprus has a population of about 1.2 million people, with Nicosia serving as its capital and largest city. [1]
Cyprus boasts a diverse and service-oriented economy, with a GDP of approximately USD 61 billion as of 2024. [2] Cyprus has been heavily reliant on imported fossil fuels, particularly oil, which accounted for approximately 77 per cent of its electricity generation as of 2024. [3] Low-carbon sources, such as solar and wind energy, contributed nearly 25 per cent to the country's electricity generation. Solar energy accounted for almost 19 per cent, while wind energy made up close to 4 per cent of the total electricity produced. [4]
Cyprus has set an ambitious target to have 33 per cent of its energy consumption come from renewable sources by 2030. [5] This goal is part of the revised National Energy and Climate Plan (NECP), which aims to transition the country to a green economy. To achieve this target, Cyprus is focusing on increasing the use of renewable energy sources like solar and wind, as well as developing energy storage systems and hydrogen-based solutions. The public consultation for Cyprus' National Hydrogen Strategy, launched on February 28, 2025, is a key part of this effort and will remain open until March 31, 2025. [6]
[6] Cyprus aims for 33 per cent renewable energy by 2030 | Cyprus Mail
Recognizing the potential of green hydrogen in achieving decarbonization goals, Cyprus has initiated steps toward developing a hydrogen economy. In February 2025, the government launched a public consultation on the National Hydrogen Strategy, aiming to integrate hydrogen solutions into the energy system.
The strategy outlines scenarios for hydrogen development up to 2030 and 2050, focusing on sectors where electrification is challenging, such as heavy transport. However, experts have noted the absence of clear targets and detailed roadmaps in the draft strategy, indicating the need for more concrete planning.
Cyprus is actively developing a green hydrogen policy to support its transition towards a sustainable and decarbonized energy system. The government’s draft National Hydrogen Strategy, currently under public consultation, outlines plan to integrate hydrogen into various sectors, with a particular focus on transportation and industry. The strategy envisions the introduction of hydrogen-powered buses and trucks by 2030, aiming to reduce emissions in hard-to-electrify segments of the transport sector. [1]
The strategy outlines potential uses and investment plans for hydrogen in Cyprus. By 2030, the cement industry could meet up to 10 per cent of its energy needs with hydrogen, expanding to 50 per cent by 2050. For road transportation, hydrogen could account for 4 per cent of total energy consumption for trucks and buses by 2030, increasing to over 15 per cent by 2050. [2]
In an ambitious scenario, the total investment cost is projected to reach EUR 2.4 billion by 2030 and EUR 6.75 billion by 2050. Specific investments through 2030 include EUR 161.5 million for hydrogen buses and trucks, EUR 41.2 million for hydrogen refueling stations, and EUR 490.1 million for e-kerosene production. The conservative scenario anticipates only minor progress by the end of the decade. [3]
These projections highlight the significant potential and investment required to integrate hydrogen into Cyprus' energy system.
Cyprus, with its abundant sunshine and favorable wind conditions, holds significant potential for renewable energy development. The island enjoys over 3,300 hours of sunlight annually, providing the highest solar power potential in the European Union. [1]
Solar energy has seen significant growth, with installed PV capacity reaching 797 MW by the end of 2024, up from 638 MW the previous year. [2] Additionally, Cyprus leads globally in solar thermal water heating, with 93.5 per cent of households utilizing this technology. [3]
The island’s wind resources are moderate, but strategic offshore locations offer opportunities for development. Studies have identified areas around Northern Cyprus with significant synergy between wind and solar resources, suggesting potential for hybrid renewable energy systems. [4]
The GreenH2CY project, announced in 2023, aims to produce green hydrogen in Cyprus using renewable energy sources. This project will support the transition to hydrogen-fueled vehicles, replacing diesel and significantly reducing CO2 emissions by over 2,200 tonnes annually. The project includes the installation of a 2 MW electrolyser, a hydrogen storage facility, and a fueling station near Larnaca Airport. Co-funded by the European Union through the Innovation Fund, the project is expected to be operational by 2026. It will enhance energy security, create new jobs, and contribute to Cyprus' ambitious targets for reducing greenhouse gas emissions. [1]
A consortium of 27 companies from Greece, Romania, and other countries is collaborating to establish the first hydrogen valley in Cyprus. This initiative aims to create a comprehensive hydrogen value chain, encompassing production, storage, distribution, and consumption of green hydrogen. The hydrogen valley will primarily use solar power for hydrogen production, aligning with Cyprus' broader strategy to integrate hydrogen into its energy mix and reduce carbon emissions. The project is supported by state aid and aims to enhance the deployment of renewable energy sources in the region. [2]
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