“The government’s claim that a reduction in the selling price of electricity from commercial solar farms could, on its own, lead to a 20% decrease in the price of electricity lacks any basis in the available market data.”
This is stated, among other things, by the Electricity Market Association (SAE) in a response statement issued in light of the public debate that has unfolded in recent days regarding the remarks made by the President of Direct Democracy, Fidias Panayiotou, regarding the cost of electricity and, more specifically, the selling price of electricity from solar farms.
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As it notes, the goal of substantially reducing the cost of electricity is a shared one and has been a core position of the SAE for years.
“Cyprus continues to face one of the most significant energy cost problems in Europe, and any serious proposal that could lead to cheaper electricity for households and businesses must be. Precisely for this reason, however, the discussion must be based on factual data and an understanding of how the electricity market operates.”
SAI emphasizes that “the public claim that a reduction in the selling price of electricity from commercial solar farms can, on its own, lead to a 20% reduction in the price of electricity is completely unsubstantiated based on available market data.”
“The reality is quite different. The commercial solar farms at the center of this discussion account for a relatively small portion of the total electricity traded on the market. Based on published market data for the period from the start of operations through August 2026, solar energy from commercial photovoltaic parks in this specific segment of the market accounts for approximately 6.4% of the total energy traded, while its average selling price was significantly lower than the 25–30 cents cited in the public debate. Mr. Panagiotou’s challenge to the above data cannot be made with general barbs or sweeping statements. Numbers are answered with numbers, and data with data. If someone believes that a calculation is incorrect, they must present their own methodology and the data that lead to a different result. Especially when such a specific claim is made—such as that an intervention in a limited part of total production can reduce the price of electricity by 20%— the burden of proof lies with the person making the claim. Until then, mere skepticism does not constitute proof.”
The Association points out to the Member of the European Parliament that “the final electricity bill is not determined by a single category of producers.” It explains that “it is influenced by the cost of conventional power generation and fuels, the cost of emissions, grid operations, available generation units, and, overall, the way the electricity system and the market function.”
To achieve a real reduction in the cost of electricity, the following are needed, among other things:
- reducing Cyprus’s dependence on expensive contracted power generation,
- completing the natural gas terminal at Vasilikos so that natural gas can be used for electricity generation,
- to move forward without further delays with energy storage systems that are currently stalled by the bureaucracy of the Distribution System Operator,
- to utilize more green energy rather than curtailing it by as much as 70 percent,
- to integrate new generating capacity into the system,
- to modernize the power grids,
- and, above all, to ensure that a truly competitive market functions in practice, free of distortions and offering real choices for consumers.
“We cannot, on the one hand, seek ways to make electricity cheaper and, on the other hand, cut back on large amounts of green energy that is already being produced, delay its storage, and maintain the system’s dependence on more expensive forms of generation.”
Call for Information and Dialogue
SAH is ready, as it states, to present with full transparency all available data on market operations, actual energy sales prices, the cuts imposed on renewable energy sources, production costs, and the distortions that continue to affect the price of electricity. In this context, it has already extended an invitation to the President of the Direct Democracy Party to meet with representatives of the Association.
“The goal is undoubtedly the cheapest electricity. That is why the SAE declares itself ready to discuss any well-documented proposal that can genuinely lead to lower prices for consumers. However, the numbers must add up, and the solutions must address the real causes of high electricity costs. Public discourse on such a critical issue must help citizens understand the full picture and lead to solutions. In this effort, the SAH will continue to contribute data, well-documented positions, and concrete proposals, with the goal of achieving a modern, competitive electricity market and lower costs for households and businesses.”
