Energy storage and hydrogen solutions are fully aligned with Cyprus’s regional ambitions, as the government promotes the Mediterranean as a green energy corridor between EU countries and third nations, Energy, Commerce, and Industry Minister George Papanastasiou stated on Thursday.

In his address at the Energy Storage and Hydrogen Solutions Conference in Nicosia, the Minister emphasized that innovative storage solutions are critical to achieving this objective.

He noted that the world stands at a crucial crossroads in its green transition efforts. On one hand, climate change has a profound impact on people’s lives, while on the other, the global energy landscape—particularly in Europe—is urgently seeking ways to diversify energy routes and suppliers. This urgency has been heightened by the energy crisis triggered by the war in Ukraine and the ongoing situation in the Middle East.

“As a result, all countries, including Cyprus, are dynamically reshaping their energy strategies to reflect new geopolitical realities, secure energy supplies, and address the need for affordable energy,” he said.

Within this global framework, Cyprus, as an energy-isolated nation, faces its own unique challenges that require tailored solutions, Papanastasiou noted. He described this period as a defining moment in Cyprus’s evolving energy landscape. The country’s heavy reliance on imported fossil fuels, coupled with the absence of connections to mainland Europe or neighboring countries, has historically led to high energy costs and significant vulnerability to price fluctuations and supply disruptions.

Despite these challenges, the Minister highlighted that Cyprus has made notable progress in developing renewable energy sources. The country has implemented comprehensive policy frameworks aimed at enhancing energy security, autonomy, and geopolitical stability. The revised National Energy and Climate Plan (NECP) for 2030 sets ambitious targets, including achieving a minimum of 33% renewable energy in gross final energy consumption.

As Cyprus increasingly depends on renewables, Papanastasiou acknowledged the challenges posed by their intermittent nature, which necessitate robust grid stability measures. He stressed that energy storage systems and hydrogen solutions are essential, describing energy storage as not only a technical solution but also a strategic asset for the nation’s energy security.

While advancing its energy storage initiatives, Cyprus is also exploring its potential in the hydrogen sector as a complementary solution. The Minister announced that on February 28, 2025, the government launched a public consultation on the country’s National Hydrogen Strategy, which will remain open until March 31, 2025.

He explained that research, supported by technical assistance from the European Commission under the REPowerEU initiative, has yielded critical findings that fundamentally shape Cyprus’s hydrogen strategy. Notably, direct electrification is identified as the most suitable option for the country, given its renewable energy potential.

Furthermore, the phased introduction of hydrogen in the transport sector by 2030 has been determined to be the most optimal and cost-effective method for integrating hydrogen into Cyprus’s energy mix. According to NECP estimates, hydrogen-powered trucks and buses are expected to be gradually introduced by 2030.

Additionally, Papanastasiou emphasized the importance of establishing a comprehensive regulatory framework, which the government aims to finalize by 2027.

Acknowledging the significant challenges associated with developing the hydrogen sector in Cyprus, the Minister cited key obstacles such as water scarcity—critical for green hydrogen production via electrolysis, which requires 9 to 15 kilograms of pure water per kilogram of green hydrogen—the lack of natural gas infrastructure, and economic constraints related to the necessary technology.

Finally, Papanastasiou reiterated that energy storage and hydrogen solutions align with Cyprus’s regional aspirations, as the country seeks to position the Mediterranean as a green energy corridor for both EU and third countries. “Innovative storage solutions will be critical to our success,” he concluded.