‘One in ten Cyprus households face energy poverty’

Approximately one in ten households are affected by energy poverty, with the government setting an indicative target of reducing this type of poverty by 10 per cent by 2030, the energy minister said on Tuesday. Michael Damianos was speaking at the Tackling Energy Poverty workshop hosted by Nicosia municipality. The estimates on the rate of energy poverty that he cited come from the National Energy and Climate Plan, which Cyprus submitted to the European Commission in December 2024. “We need to further enhance our policies and improve support measures, ensuring that no affected household gets left behind,” Damianos said. Energy poverty happens when a household cannot afford or access essential energy services needed for a safe and healthy home, such as heating, cooling, lighting and running appliances. Combating energy poverty requires long-term planning, Damianos said. He added that under the new EU Energy Efficiency Directive, 15.1 per cent of Cyprus’ mandatory cumulative end-use energy savings target must be met by 2030 through measures for energy-poor and low-income households, vulnerable customers and people living in social housing. On what is being done currently, Damianos referred to the Energy Efficiency Law passed this year, where energy poverty became a legally defined term. In addition, in July the cabinet approved the establishment of a national governance system for energy poverty. It provides for the development of a national observatory, consisting of state agencies, which will monitor the phenomenon of energy poverty on an annual basis. 30,000 households benefit from rates cut In the meantime, more than 30,000 households classed as ‘vulnerable’ are benefiting from the special electricity tariff – with rates typically 20 per cent lower than the standard rate. State grants are also available for home energy upgrades, with support reaching 80 per cent of the eligible cost for vulnerable households, as well as support for installing PV systems, plus schemes for the replacement of water heaters and energy-intensive home appliances. About €100 million from the Social Climate Fund, including the Cypriot contribution, will help speed up energy upgrades, promote cleaner technologies and improve energy-poor households’ access to affordable energy, Damianos said. The Social Climate Fund is a European Union financial mechanism created to support vulnerable households, micro-enterprises and transport users through the green transition. Athens mayor Harris Doukas spoke about the Great Sea Interconnector, asserting it would bring down electricity costs by 19 per cent for Cypriot consumers. Total savings for consumers in Cyprus and Greece would come to €138 million a year. The electrical interconnection would help render the grid more stable, while also allowing for greater penetration of renewables into the energy mix. Nicosia mayor Charalambos Prountzos said local government authorities can play a key role in dealing with energy poverty. Nicosia municipality has proposed the creation of an ‘energy poverty register’, mapping out needs on a municipal level.