As Minister of Energy, Commerce and Industry, what are your expectations for the economic sectors in your Ministry’s portfolio for 2026?

In 2026, the Ministry of Energy, Commerce and Industry of the Republic of Cyprus aims to further strengthen the country’s position as a pivotal international business, trade and energy hub in the Eastern Mediterranean.

Throughout 2025, Cyprus made notable progress in advancing its energy programme within its Exclusive Economic Zone (EEZ), supported by strategic partnerships with leading international oil and gas companies. The ‘Pegasus-1’ exploration well in Block 10 confirmed a significant gas-bearing reservoir – the sixth discovery in our EEZ. In total, gas initially in place (GIIP) in ‘Glaucus’ and ‘Pegasus’, both in Block 10, is around 8-9 trillion cubic feet.

In addition, Cyprus deepened its energy cooperation with Egypt, signing on 17 February 2025 a Memorandum of Understanding for the development of the ‘Aphrodite’ field, as well as a Host Government Agreement to enable gas transport from Block 6 to Egypt for export via Egyptian LNG infrastructure.

Our priorities for 2026 include the appraisal of existing discoveries and the continuation of exploration activities, the fast-tracking of ‘Cronos’ for first gas by late 2027, and the completion of the Front-End Engineering Design for ‘Aphrodite’s’ development. We will also focus on export infrastructure, regulatory enhancements and environmental sustainability. Collectively, these initiatives aim to position Cyprus as a key energy player in the Eastern Mediterranean, contributing to the energy security of both our region and Europe.

In the electricity sector, 2025 marked two major milestones: the commercial operation of the competitive electricity market and the mass rollout of smart meters. For 2026, our top priorities include the modernisation and digitalisation of the electricity grid, the promotion of storage systems, energy and renewable communities, and targeted measures to address energy poverty. These developments will enable more efficient energy distribution, greater system resilience, and increased consumer engagement in managing energy usage. Moreover, we are intensifying efforts to complete key energy projects, such as the LNG Import Terminal and the Great Sea Interconnector, both crucial for enhancing security of supply and enabling much higher penetration of renewable energy sources in our energy mix.

In the industrial sector, our primary goal for 2026 is to boost competitiveness and international orientation. The past year saw significant progress with the public consultation of our Industrial Competitiveness and Internationalisation Action Plan and the implementation of new support schemes. Looking ahead, our Ministry aims to foster a more sustainable, innovative and outward looking industrial base – one that enhances Cyprus’ position in both regional and global value chains. Through these initiatives we will elevate our island’s industrial standing, making it a more resilient and dynamic player on the international stage.

 The Ministry of Energy, Commerce and Industry also plays a decisive role in enhancing the extroversion of Cypriot enterprises and supporting their expansion into international markets, across the services, agricultural and industrial sectors. Cyprus continues to experience solid growth in the trade sector, largely driven by its strategic geographic location and the ongoing modernisation of its infrastructure. Increases in exports of Cypriot products are led by pharmaceuticals and agricultural goods, whereas increased outgoing trade in services depends mainly on information and communications technology, financial services, tourism, and maritime and shipping.

Finally, Cyprus will hold the Presidency of the Council of the European Union during the first half of 2026 – its second Presidency, 14 years after the first in 2012. Our vision is to deliver a successful and ambitious Presidency, particularly in policy areas that fall within the competencies of our Ministry.

Ultimately, it is our belief that 2026 will be a year of transition and growth for the Cypriot economy, laying the foundations for a more prosperous and sustainable future for Cyprus, both regionally and globally.