The high cost of energy continues to be a key challenge for the competitiveness of businesses, points out the Federation of Employers and Industrialists (OEB).
In its report on the occasion of the Annual General Assembly to be held on Tuesday, April 28, 2026, OEB points out that 2025 was characterized by significant and multi-level developments in the energy and environment sectors, as Cyprus continued its path towards achieving national and European climate neutrality goals, in an environment of increased pressures on energy costs and intensifying environmental challenges.
It is emphasized that the OEB continues to play a key role in the formulation of policies and interventions concerning energy, the environment and sustainable development, with a view to strengthening the competitiveness of Cypriot businesses and ensuring a fair and realistic green transition.
A particularly important development, he notes, was the full operation of the Competitive Electricity Market, which creates the conditions for strengthening competition and more efficient pricing over time. At the same time, he adds, the promotion of electrical energy storage projects has emerged as a critical factor for the flexibility of the electrical system, reducing cuts and further increasing the penetration of Renewable Energy Sources.
GSI
The Great Sea Interconnector project, according to the Federation, remained at the center of public debate, as it is an undertaking of high strategic importance, but also of increased technical, financial and geopolitical uncertainties.
The OEB closely followed the developments, underlining the need for transparency, a documented cost-benefit assessment and a simultaneous examination of alternative energy options that would ensure the competitiveness of the economy.
Natural gas
In the natural gas sector, the developments around the FSRU “Prometheus” and the related infrastructures, he points out, have confirmed the importance of the fuel as a transitional solution to reduce energy costs and emissions, but also the need for timely completion of the necessary infrastructures for its essential inclusion in the country’s energy mix.
Green hydrogen
At the same time, OEB placed particular emphasis on the promotion of “green” hydrogen, which is gaining increasing importance in the context of the European and national decarbonization strategy, as well as on the implementation of the revised European Directive on the energy efficiency of buildings, which introduces new stricter requirements for the building sector and the construction industry.
The common denominator of the above developments, he underlines, remains the high cost of energy, which continues to be a key challenge for the competitiveness of businesses. The OEB submitted documented proposals aimed at reducing costs and improving the functioning of the market.
The water crisis is serious
As far as the environment is concerned, the water crisis emerged as one of the most serious challenges of the year, intensifying the need for structural solutions, as well as investments in the conservation, efficient management and reuse of water resources. At the same time, the update of the National Climate Change Adaptation Strategy was completed, strengthening national planning for resilience up to 2050.
Businesses were also asked to adapt to the new European requirements for Sustainability Reports, which included significant simplifications for small and medium-sized enterprises. In addition, OEB actively contributed to the public debate on the Social Climate Plan, submitting targeted proposals for the just transition.