Europe's dual crises of energy security and affordability have made the eastern Mediterranean a strategic frontier for the European Union's energy and security strategy.
At the crossroads of the region, Cyprus lies at the core of a common Mediterranean energy strategy meant to diversify supply, accelerate the use of renewables and strengthen Europe's geopolitical standing.
The European Commission already recognises Cyprus, Israel and Egypt as key partners for diversifying gas supplies away from Russia, citing their significant offshore reserves and their proximity to the EU market.
In Cyprus' exclusive economic zone (EEZ) alone, gas fields such as Aphrodite, Glaucus, Cronos and Zeus show spectacular promise for commercial-scale amounts of natural gas. The wider Levantine Basin reserves have also elevated the standing of Israel and Egypt to regional energy actors.
If developed swiftly and responsibly, Cypriot gas can provide an affordable and timely increment to the EU's security of supply.
At the same time, hydrocarbons are only half of the story.
This article is part of The Parliament's Guide to the Cyprus Presidency of the Council of the EU.
Ready for renewables
Cyprus enjoys some of the highest solar exposure levels in the EU, making it a natural ecosystem for large‑scale photovoltaics and energy storage.
Recent years have seen a rapid increase in renewable capacity installed, mostly solar — a remarkable feat for a small island nation of one million people.
But without adequate grids, storage capacity and interconnections, Cyprus has had to curtail a large amount of its renewable electricity at times, wasting clean energy and keeping prices high.
The structural constraint is the geographical isolation of the country.
Cyprus remains the only member state isolated from the European electricity grid, with no interconnector with any other EU country. That leaves the island dependent on oil‑fired power plants and exposed to extreme price volatility, as well as high costs from the Emissions Trading System, the EU's 'cap-and-trade' mechanism to reduce pollution, requiring companies in certain sectors to pay for their greenhouse gas emissions.
In this context, the planned Great Sea Interconnector that would connect Greece, Cyprus and Israel represents a strategic artery linking eastern Mediterranean power systems to the EU's internal market. Furthermore, it would unlock the full potential of the island's renewables and enable the use of regional gas reserves as a transitional and affordable fuel on the path to a just, green transition.
Despite financial concerns and technical questions that have delayed final decisions, the project retains strong EU backing as a Project of Common Interest, — one of the infrastructure projects considered necessary to complete the European energy market — given its potential for energy security and affordability.
Turkish interference
Turkish hostile maritime activity and unlawful claims towards Cyprus' EEZ have complicated exploration, routing and financing for its energy projects.
More than 50 years after the 1974 invasion and the subsequent occupation of the northern part of the Republic, persistent Turkish interference with licensed drilling underlines that energy decisions in Cyprus carry a geopolitical risk.
Hence, if the EU wants Cyprus to play a meaningful role in its energy security, it must also offer enhanced political, financial and security support against the Turkish threats and repeated violations of international law, along with Turkey's complete disregard for the sovereignty of the Republic.
The shared energy strategy conceived in the recently approved conclusions on the Pact for the Mediterranean provides the indispensable framework for such support.
Extra gas reserves
The EU stands to benefit from the utilisation of Cyprus' energy reserves and potential.
By tapping into Cyprus' reserves, the EU can enhance the security of its energy supply, reduce dependencies on third countries and tackle the affordability crisis of energy burdening European households and hampering the competitiveness of the member states' economies.
Coupled with the REPowerEU plan to reduce dependence on Russian gas imports, the Pact for the Mediterranean confirms the EU's commitment to an integrated energy space in the area, combining gas, electricity and renewables in a coherent regional architecture.
By anchoring Cyprus in a shared Mediterranean energy system, the EU reinforces its democratic member state at the front line of a volatile region.
Done right, this is not only an energy project but a geopolitical one. A resilient and free Cyprus, exporting gas in the short term and clean electricity in the longer run, will in fact provide stability and strengthen Europe's hand as a global actor and a beacon of growth, competitiveness and liberty.
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