• Two harmonizing bills aimed at promoting renewable energy sources (RES) have been submitted to Parliament to prevent European sanctions from being imposed on the Republic of Cyprus.

• The first bill increases the national RES usage target to 42.5% by 2030 and introduces fast-track permitting procedures for projects.

• New obligations for renewable energy usage are introduced in sectors such as industry and heating, alongside stricter provisions for biomass.

• The second bill focuses on sustainable transport, imposing strict sustainability criteria on aviation fuels and fines for non-compliant suppliers.

• The European Commission has already issued a reasoned opinion against Cyprus due to delays in fully integrating the relevant EU directive into national law.

Imminent Threat of Heavy EU Fines and Sanctions

New, stricter measures and policies regarding the further promotion and use of renewable energy sources (RES) in households and businesses are outlined in harmonizing bills submitted to the House of Representatives by Energy Minister Michael Damianou.

It is noted that the Republic of Cyprus is currently in breach regarding the transposition of relevant measures and policies into national law. Consequently, the European Commission issued a reasoned opinion due to the non-notification of transposition measures for Directive (EU) 2023/2413, also known as RED III, back in December 2025.

As a result, the Republic faces the immediate risk of heavy sanctions and fines imposed by the European Court of Justice for delays in incorporating these specific measures and policies into national legislation.

Legislative Push to Meet the 2030 Mandate

In its effort to avoid sanctions, the Republic proceeded with the submission of the first bill last April, with discussions in the relevant Parliamentary Energy Committee kicking off last Tuesday. The second bill was submitted to the Plenary of the House of Representatives last Thursday.

These bills, which will be among the first to be discussed by the Energy Committee when parliamentary work resumes after the summer recess in September, increase the Republic’s national contribution toward achieving the EU's collective binding target: bringing the share of renewable energy in gross final energy consumption to 42.5% by 2030.

Among other things, the bills provide for the designation of RES acceleration areas with accelerated permitting procedures (shortened to 9–12 months), the repowering of existing parks, the recognition of RES projects as matters of "overriding public interest," and the creation of a level playing field for sustainable aviation transport.

Increased RES Obligations Across Sectors

Specifically, the bill submitted to Parliament last week increases existing targets and obligations to promote renewable energy use in specific sectors, such as heating and cooling, buildings, and district heating/cooling.

At the same time, new targets and obligations are introduced for promoting RES in additional sectors, including industry, renewable fuels of non-biological origin (RFNBOs)/green hydrogen, innovative RES technologies, and the integration of the electricity system.

Mapping Generation Areas and Accelerating Permits

Furthermore, the bill introduces provisions regarding the mapping of geographical areas required for the installation of RES power plants and related infrastructure (grid and storage facilities) necessary to meet the national RES target.

It also provides for the identification of renewable energy acceleration areas and dedicated infrastructure and storage areas, establishing strict deadlines for completing the licensing process for RES projects within acceleration zones.

Stricter Biomass Rules and Consumer Transparency

Additionally, the legislation establishes stricter provisions regarding energy produced from biomass, promotes renewable power purchase agreements (PPAs), and imposes an obligation to seek joint agreements with one or more member states for joint renewable energy projects.

Furthermore, it revises provisions concerning Guarantees of Origin (GOs) for renewable energy, particularly gas and hydrogen, revises certification schemes for RES installers, expands them to additional technologies (energy storage systems and recharging points), and introduces mandatory participation measures in training programs for installers.

For consumers, the bill mandates network operators to inform the public regarding the share of renewables and the greenhouse gas emissions intensity of electricity supplied by the grid.

It also requires domestic, industrial, and electric vehicle batteries to provide real-time basic battery management system data to their owners/users. Moreover, new and replaced non-publicly accessible charging points will be required to support smart and bidirectional charging functionalities and interface with smart metering systems.

ReFuelEU Aviation and Transport Requirements

Regarding the second bill, which underwent preliminary discussion before the Parliamentary Energy Committee last Tuesday, the primary objective is to guarantee a level playing field for sustainable aviation transport (ReFuelEU Aviation).

Specifically, under the proposed legislation, the transport target can be set either as a minimum 29% share of RES in final energy consumption in transport by 2030, or as a greenhouse gas intensity reduction of at least 14.5% by 2030 compared to the baseline of 94g CO₂/MJ.

The bill also introduces stricter sustainability and greenhouse gas savings criteria for renewable fuels, accompanied by rigorous verification checks. It outlines calculation methodologies for target compliance and establishes an EU database where economic operators and suppliers must enter sustainability data for renewable fuels.

Additionally, the proposed law sets enforcement rules for detecting fuel quality violations in maritime transport and establishes administrative penalties (fines) for non-compliance, including penalties for aviation fuel suppliers who fail to meet targets or submit inaccurate/misleading information. It also implements annual reporting obligations for aviation fuel suppliers regarding the uptake of sustainable aviation fuels (SAF) and synthetic fuels.

Unconvincing Responses and the Road to the ECJ

Harmonization with Directive (EU) 2023/2413 is split into two enforcement timelines: harmonization for certain articles was required by July 2024, while the remaining provisions had a transposition deadline of May 2025.

Following its letter dated December 11, 2025, the European Commission issued a reasoned opinion against Cyprus due to late or incomplete transposition of the directive into national law.

In an effort to buy time and avoid referral to the European Court of Justice, the government submitted the first directive-implementation bill last April. The submission of the bill to Parliament and the parliamentary elections that followed could potentially serve as mitigating factors against incoming fines, as the Republic stands one step away from the European Court of Justice over legislative transposition delays.

In formal correspondence with the European Commission, the Republic stated it was implementing necessary measures to comply with the directive provisions covered by the May 21, 2025 deadline. The reply noted that three bills had been prepared and sent to the Law Office of the Republic for legal vetting before submission to the House of Representatives. It highlighted that partial harmonization was achieved via a law published in the Official Gazette on November 7, 2025, and that full notification to the Commission would follow once the remaining two bills were passed into law.

Despite these assurances, the European Commission moved forward with issuing its reasoned opinion, ruling that the Republic of Cyprus remains in breach of its treaty obligations.

Source: ink.com