In recent years, the Cyprus economy has faced significant challenges within its energy sector and businesses are facing huge difficulties with skyrocketing electricity prices and the ongoing shift towards renewable energy sources.
At ZSM Law Office, we understand the complexities our clients encounter when dealing with the challenges of the increase of the cost of living arising from the high interest rates, the increase in the day to day living and the rise in the electricity cost.
The increase in electricity cost can be attributed to various factors, both global and local.
Three factors that contributing to the electricity prices:
The Cyprus power system is marked by its isolated nature, with a heavy reliance on imported fossil fuels. Increase in fuel and emission costs caused the direct increase in the electricity cost.
Cyprus has not yet utilised in a sufficient degree the generation of energy from renewable energy sources (e.g. generation of electricity from the sun through solar panels) which leads Cyprus to have one of the highest electricity prices in Europe.
The recent war between Ukraine and Russia has led to disruptions in energy supply chains, further enhancing the electricity cost issue, as the availability of resources becomes more uncertain and prices are driven upward.
Our legal firm is always committed to provide support and guidance to help our clients navigate these challenges and secure their success in this evolving landscape.
Three strategies to reduce electricity expenses for businesses:
Upgrade to energy-efficient equipment and devices can substantially decrease the energy consumption and lower the electricity costs.
Establish energy management systems and practices, such as tracking energy usage, setting efficiency objectives, and routinely monitoring progress.
Take advantage of the government programs aiming the encouragement of the investments in the renewable sources of energy will help to reduce the initial investment cost.
In general, investing in efficient technologies and renewable sources of energy and monitoring the energy consumption patterns, will ultimately help each organisation to achieve its corporate sustainability goals.
We understand that the ongoing situation presents numerous legal and financial hurdles for businesses operating in Cyprus, and we are dedicated to helping our clients overcome these obstacles.
ZSM Law Office is keenly aware of the challenges posed by the rising electricity costs in Cyprus and the adverse effect on the local economy.
Our legal firm is dedicated to assist and advise its clients in finding potential solutions to their energy challenges and help them make informed decisions towards their growth and success.
More specifically we can advise our clients on the legal and regulatory frameworks in the energy sector, providing them with a comprehensive range of commercially focused legal solutions. Among other we can provide legal advise on:
Project development and financing
M&A
Multilateral and bilateral agreements (including service and operating agreements)
Regulatory issues and state aid
Licensing
Legislative impacts and compliance
Any other commercial and corporate energy matter (such as transactions, corporate structuring etc).
This article is written for information purposes only and it does not constitute legal advice.
For further information, legal advice, company incorporation and assistance please contact us at zena@zsm.law or call us at +357 25-252282.
ZSM Law Office, is a Limassol based boutique law firm, with over 10 years of experience on corporate, immigration, real estate, shipping law and other.