Cyprus caught between Europe’s gas crisis and its own energy dependence

Economy climate crisisenergyeuTop NewsWeather Cyprus caught between Europe’s gas crisis and its own energy dependence Power Grid Stretched Thin As Winter Demand Surges Relevant News Cyprus caught between Europe’s gas crisis and its own energy dependence 3 September 2026 Europe’s pension money is helping finance America’s AI boom 3 September 2026 Things to do on Thursday, September 3 3 September 2026 Theodosis Pipis 3 September 2026 FacebookXWhatsAppEmailPrintViber Europe is heading into the colder months with gas reserves at their lowest level in 13 years, raising concerns among energy traders about a potentially difficult winter. EU gas storage facilities were around 63% full during the final week of August. That is significantly below the average of roughly 80% recorded around this point in recent years, making the current level one of the lowest seen for this time of year, according to The Guardian. If gas continues to be added to storage at the current slow pace, the EU could begin the winter heating season with reserves around 20% below the five-year average. How is Cyprus going to be affected? In the case of Cyprus, the vulnerability is arguably more structural: the island has one of the highest energy import dependencies in the EU, with 87.7% of its gross available energy coming from imports in 2024, according to the European Commission. Oil and petroleum products alone accounted for 85.2% of Cyprus’s gross energy consumption that year. This means that while Cyprus does not face the same storage shortfall described in the European gas market, it remains highly exposed to international fuel prices and geopolitical disruptions. The current crisis has already demonstrated how quickly conflict can feed into global fossil-fuel markets, with the US-Iran war triggering a spike in fossil-fuel prices. For Cyprus, where the electricity system remains heavily dependent on imported fuels, another prolonged period of elevated energy prices could translate into higher costs for households and businesses. The European gas crunch also raises questions about Cyprus’s long-delayed plan to introduce natural gas into its electricity mix. The island has been working towards an LNG terminal at Vasilikos, intended to allow imported liquefied natural gas to be used for electricity generation, but the project has faced significant delays. The European Commission says the delays are hindering Cyprus’s efforts to diversify its energy supply, while the country’s lack of electricity interconnections with neighbouring countries leaves it particularly isolated from wider European energy markets. At the same time, Cyprus is developing its offshore gas resources, giving the island a potential role in supplying Europe itself: in August, Energy Minister Michael Damianos said, in an interview with the Associated Press, that gas from the Cronos field could begin reaching European markets as early as 2028, with the project expected to become the first Cypriot gas development to supply European markets. This creates an unusual position for Cyprus: the country is simultaneously trying to secure gas for its own energy system while positioning its offshore resources as a potential source of energy for a Europe increasingly concerned about supply security. Perhaps the clearest lesson from Europe’s gas problems is that energy security cannot depend entirely on finding another source of imported fossil fuels. Cyprus has enormous potential to reduce its exposure through renewable energy, particularly solar power, but it still has considerable ground to cover. Renewables accounted for 27.5% of Cyprus’s electricity consumption in 2025, among the lowest shares in the EU, even though the country has some of the strongest solar resources in Europe. Image: https://ec.europa.eu/eurostat/databrowser/view/nrg_ind_ren__custom_19370136/default/table The European Commission has consequently identified renewable energy, grid expansion and energy storage as crucial to improving Cyprus’s resilience against external energy shocks. The contrast with the current European gas crisis is significant: when gas supplies become uncertain or expensive, countries with diversified electricity systems have more options. For Cyprus, investing in solar generation, battery storage and stronger electricity interconnections could reduce the island’s exposure to the kind of international price volatility now putting pressure on European energy markets. EU countries? EU countries have struggled to rebuild their gas reserves towards a revised target of 80% by the beginning of winter. This has been made more difficult by major disruptions to oil and gas exports from the Gulf region following the US-Israel war with Iran. A colder-than-expected end to last winter, combined with increased reliance on gas-fired power generation during Europe’s summer heatwaves, has further reduced the bloc’s gas reserves. Under normal circumstances, storage operators replenish supplies throughout the summer, when demand and prices are generally lower. While a physical shortage of gas is not currently expected across Europe, market participants anticipate that prices will rise significantly. The European benchmark gas price has recently reached three-year highs of more than €68 per megawatt-hour (MWh), more than twice its level at the beginning of the year. Concerns over gas supplies are especially strong in western Europe, where storage levels are significantly lower than in countries such as Italy and Poland, where both countries have managed to replenish their reserves to more than 80% of capacity. Germany, which has the largest gas storage capacity in Europe, currently has facilities that are around 50% full, according to Gas Infrastructure Europe. Storage sites in Belgium and the Netherlands are also relatively low, at approximately 51% and 45% respectively. Both countries are directly connected to the UK gas market through pipeline networks. The UK is expected to become increasingly dependent on gas imports as production from the North Sea continues to decline. This dependence could grow further as Norwegian gas production is also projected to decrease from 2030 onwards. With Europe entering winter with significantly lower gas reserves than in previous years, the coming months are likely to put the continent’s energy system under renewed pressure. Although widespread physical shortages are not currently expected, limited storage, rising prices and uncertainty over global gas supplies leave European markets vulnerable to sudden increases in demand or further disruptions to imports. If supplies remain constrained while demand rises during the colder months, European consumers could face another period of heightened price volatility and increased energy costs. (With information from the Associated Press and The Guardian) Read more: The Iran war has exposed Europe’s fossil-fuel vulnerability Subscribe to our Newsletter Latest News Europe’s pension money is helping finance America’s AI boom Things to do on Thursday, September 3 10-year-old pianist in Cyprus earns professional music diploma Isolated mountain storms forecast as temperatures set to reach 39 degrees Occupied north’s Üstel sacks “minister” as first missing body found Cyprus to build three new desalination units to boost water security Limassol to recreate ancient Kourion using AI and 3D models Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.