The European Union’s new European Grids Package offers Cyprus a practical roadmap to escape energy isolation, cut electricity costs, and curb wasted solar power if implemented decisively, according to former Cyprus Energy Regulatory Authority chairman Andreas Poullikkas.
“The European Grids Package is a comprehensive reform package for how Europe plans, licenses, finances and operates its electricity networks,” Poullikkas explained, highlighting its relevance to Cyprus. He argued that proper use of the package could help the country reduce electricity prices and prevent the curtailment of solar energy.
Grids package: Transforming Cyprus’ Energy Landscape
Poullikkas outlined that the package is structured around four core areas: European grid planning and energy corridors, licensing and connection rules, financing and cost sharing, and the integration of digitalisation, security, and storage. He warned that the EU will be short by around 88 gigawatts of cross-border transmission capacity by 2030. Without aggressive investment and smart management, he stated, neither climate targets nor lower electricity bills can be achieved.
He emphasised that the package changes the philosophy of European grid planning by giving the EU a more active role in shaping a long-term development scenario extending to 2040 and 2050. This long-term vision will underpin the ten-year European network development plan, placing special emphasis on projects of common interest.
Critical Interconnections for Cyprus
Among eight strategic energy corridors, the Greece–Cyprus–Israel electricity interconnection is classified as a project of critical importance. Poullikkas remarked that this interconnection, referred to as the Great Sea Interconnector, is the only way for Cyprus to cease being the last unconnected EU member state from the internal electricity market.
He noted that the package introduces significant changes in how grid projects and renewable energy connections are designed and approved. The introduction of the ‘first-ready first-served’ principle in connection queues is crucial, according to Poullikkas, as it facilitates clear maturity criteria and timelines, removing speculative projects that occupy capacity without being realised.
Streamlining Processes and Costs
Faster licensing through simplified procedures is another critical aspect of the package, as is the potential application of “positive silence” and the establishment of single digital portals for all renewable energy, storage, and grid permits in every member state. Poullikkas also pointed out that financing and cost allocation are addressed, with the EU recognising that more than €580 billion in network investments will be required by 2030.
“Blindly passing these costs on to consumers is neither politically nor socially sustainable,” he explained, advocating for greater transparency and fair cost-benefit sharing in cross-border projects. The proposal supports bundling projects into special purpose schemes and optimising the use of tools like the Connecting Europe Facility and private capital.
Emphasising Security and Digitalisation
Poullikkas highlighted that digitalisation, flexibility, and security are now elevated to pillars equal to traditional investments in lines and substations. He argued for exhausting the capacity of existing networks before investing in new cables, suggesting the use of grid-enhancing technologies, smart meters, and tariffs that encourage efficient usage.
Physical and cyber security considerations are explicitly integrated into network planning, with funding for resilience measures available through the Connecting Europe Facility. This integration aims to reduce dependence on high-risk suppliers while strengthening protection against cyberattacks.
Call for Action in Cyprus
Poullikkas stressed that Cyprus cannot remain a passive observer in this European framework. He called for a radical revision of its ten-year transmission and distribution network development plan to align fully with the European scenario and the requirements of the European Grids Package. Despite delays in implementation of a 2019 regulatory decision on redesigning the Cypriot electricity system, he asserted that immediate action is necessary.
He urged for an active, preventive grid capable of integrating high renewable penetration, widespread heat pumps, electric mobility, and storage systems. The necessity for better coordination between transmission and distribution planning presents an ideal opportunity to address current bottlenecks in the Cypriot grid.
A Framework for Sustainable Energy
The acceleration and safeguarding of the Greece–Cyprus–Israel interconnection is a fundamental priority, Poullikkas noted. He advocated for substantial reform of the licensing regime and connection queues, suggesting that implementing the tools provided by the European Grids Package is essential.
He called for the establishment of a transparent ‘first-ready first-served’ system with clear stages, deadlines, and penalties to facilitate serious storage projects. Furthermore, a single digital platform for all renewable, grid, and storage applications would address long-standing criticisms regarding delays in the system.
Poullikkas emphasised the importance of translating European guidance on digitalisation and smart grids into a concrete national investment programme. He stated that initiatives such as the roll-out of smart meters and stronger cyber security measures cannot remain in a pilot phase but need full implementation.
With the European Grids Package providing essential tools for transformation, he noted that Cyprus must act decisively. “Cheaper, cleaner, and safer energy will not come through slogans,” Poullikkas stated, underscoring that continuous investment and upgrades in networks, substations, software, and regulations are crucial for the future.
