Renewables sector rejects Panayiotou's profit claims, warns against 'Oversimplification'
"MEP Fidias Panayiotou recently urged the Cypriot President to intervene in the energy market, alleging that commercial solar parks are making excessive profits and that capping them could reduce consumer electricity bills by up to 20%. In response, the Energy Market Association (EMA) and the Federation of Employers and Industrialists (OEV) strongly rejected these claims, calling them inaccurate and "dangerous oversimplifications."."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
Owners of commercial solar parks in Cyprus on Monday sharply criticised statements made by Fidias Panayiotou, leader of the Direct Democracy party and a member of the European Parliament. Panayiotou had publicly asserted that businesses could reduce electricity prices by as much as 20 percent while still maintaining profitability.
Earlier, Mr. Panayiotou had urged President Nikos Christodoulides to intervene regarding the high cost of electricity. He claimed that while solar parks generate electricity at an estimated cost of 5 to 8 cents per kilowatt-hour, they sell this power for significantly higher rates, ranging from 25 to 30 cents. Based on this perceived discrepancy, Panayiotou suggested that electricity bills could be cut by up to 20 percent.
In response, the Energy Market Association (EMA) swiftly rejected the notion that its members are generating excessive profits. The association argued that Panayiotou’s claims failed to account for crucial factors such as solar parks’ operational costs, overheads, the current lack of sufficient energy storage solutions, and, critically, the frequent curtailments imposed on renewable energy production.
The EMA further clarified that solar energy from commercial parks constitutes only 6.4 percent of the total energy traded since the competitive electricity market was launched in Cyprus in 2025. Moreover, the association highlighted that the average price at which this solar energy was traded was considerably lower than the figures cited by Mr. Panayiotou.
Adding to the discussion, an electricity systems expert presented calculations showing that the average price of solar energy sold on the day-ahead market stands at 14.48 cents per kilowatt-hour. A simulation by the same expert indicated that even with an aggressive price cap of 11 cents, the weighted average price of electricity would see a reduction of merely 1.8 percent, a stark contrast to the 20 percent suggested by Mr. Panayiotou.
"Mr. Panayiotou cannot question the above data with generalities and aphorisms," the EMA stated, adding, "numbers are answered with numbers, and data with data." The association extended an invitation to Mr. Panayiotou for a direct discussion on the matter.
Later the same day, the Federation of Employers and Industrialists (OEV), of which the EMA is a member, issued its own statement, appearing to indirectly criticise Panayiotou's stance. The OEV cautioned that "oversimplifications will not bring down the cost of electricity." The federation emphasised that no single intervention is capable of resolving the complex issue of high electricity prices in Cyprus. It stressed the necessity of understanding that significant investments in essential infrastructure are required, which, in the short term, are likely to drive electricity prices upward.
The OEV concluded by stating, "oversimplifying a complex matter with well-sounding but unsubstantiated claims, targeting one or more participants in the electricity market, and fostering a belief that simple and fast actions will bring down the cost of electricity, is not just misleading – it is also dangerous."
Cyprus officially introduced its fully competitive electricity market in October 2025, following years of preparatory delays. This market involves multiple private participants, including conventional producers, independent suppliers, aggregators, and green energy producers, trading in 30-minute intervals.