The Electricity Market Association (SAI) has challenged claims by independent MEP Fidias Panayiotou that electricity bills could be reduced by 20%, arguing that the figures cited do not reflect the realities of Cyprus's electricity market.
The intervention follows Panayiotou's public call for President Nikos Christodoulides to act on electricity prices, claiming that power generated by commercial solar parks costs around 5 to 8 cents per kilowatt-hour but is ultimately sold at 25 to 30 cents per kilowatt-hour.
Based on that difference, Panayiotou argued that profits could be curtailed and savings passed on to consumers, resulting in a reduction in electricity bills of about 20%.
Industry rejects excess profit claims
Renewable energy producers have disputed that assessment, saying such calculations fail to take account of key costs, including:
- Operating expenses
- Financing and investment costs
- Significant curtailments of renewable energy production
The debate has now shifted from the political arena to a dispute over market data and the functioning of the electricity system.
What the market data show
In a statement, the association said electricity generated by commercial photovoltaic parks, which are at the centre of the discussion, represented only 6.4% of total traded electricity since the launch of the competitive market up to August 2026.
It added that the average selling price of that electricity was considerably lower than the 25 to 30 cent figures cited in public debate.
The association also referred to an analysis published by electricity systems specialist Andreas Prokopiou, based on publicly available market figures.
According to that analysis, the average price of solar-generated electricity in the Day-Ahead Market was 14.48 cents per kilowatt-hour.
A market simulation further indicated that imposing a ceiling of 11 cents per kilowatt-hour on solar energy would reduce the overall weighted average electricity price by around 1.8%, rather than the 20% reduction suggested by Panayiotou.
Many factors influence electricity bills
The association stressed that consumer electricity bills are affected by a much wider range of factors than photovoltaic generation alone.
These include:
- Fuel costs
- Carbon emissions costs
- Conventional power generation
- Electricity networks
- Availability of generation units
The organisation also highlighted substantial curtailments of renewable energy production, which it said can reach 70% during certain periods, as well as delays in the rollout of energy storage infrastructure.
Industry's proposed solutions
Rather than focusing solely on solar pricing, the association said meaningful reductions in electricity costs require broader structural reforms.
Among the measures it highlighted were:
- Completion of the Vasiliko natural gas terminal
- Expansion of electricity storage systems
- Addition of new generating capacity
- Modernisation of electricity networks
- Full implementation of a genuinely competitive electricity market
Call for transparency
The Electricity Market Association said it remains open to dialogue and has already invited Panayiotou to a meeting.
It called on the MEP to present the methodology behind his estimates, arguing that public claims about electricity prices should be supported by detailed calculations.
"Numbers should be answered with numbers," the association said, adding that anyone promising a specific reduction in electricity bills should also explain how that figure was reached.
