A 50-megawatt solar plant in the Turkish Republic of Northern Cyprus (TRNC), set to be built by Türkiye for $60 million (TL 252 million), will help the island offset economic fees imposed by the Greek Cypriot administration.
The TRNC, not recognized internationally except by Türkiye, is under an energy blockade of the Greek Cypriot administration in the divided island. A new solar plant may address the country’s energy woes, covering the energy needs of local industries and particularly hotels that powers flourishing tourism sector of the TRNC. Above all, it will be a crucial investment for the country’s energy independence.
For years now, Türkiye has sought to install an undersea power line to the TRNC, but it was opposed by the Greek Cypriot administration, citing “interconnectedness” and disputed jurisdiction of waters with the TRNC where the line would go through. Greek Cypriots, however, exploited the lack of proper energy supplies to the TRNC and supplied electricity to Turkish Cypriots at 50 times the price in the wider region.
Olgun Amcaoğlu, Turkish Cypriot minister of economy and energy, told a group of Turkish journalists this week that the island had a significant energy problem. He noted that Türkiye sought to invest $400 million for a 95-kilometer subsea line to supply electricity to the TRNC, but Greek Cypriots objected to it. “In turn, they attempted to install a 1,208-kilometer line with a projected investment worth $2 billion from Greece. This proposed line also included stretches of the Turkish maritime zone. The European Union did not consider it feasible and it is now shelved. However, if the Türkiye-TRNC subsea line is installed, it will be for the benefit of both the TRNC and the Greek Cypriot side,” he said.
Amcaoğlu said they also held talks with Energy and Natural Resources Minister Alparslan Bayraktar to rapidly address the country’s energy needs, adding that a decision had been made to meet demand by building a solar power plant with storage capacity.
“With this plant, hoteliers and industrialists will be able to generate the energy they need themselves,” Amcaoğlu said. “The maximum cost of electricity produced here will be TL 0.40. Unfortunately, during peak hours, when energy demand is high, we buy electricity from the Greek Cypriot side at 50 cents per kilowatt-hour. In other words, we buy electricity for TL 20, which could be produced for TL 0.40. When we are squeezed, we have no choice but to buy it,” he said.
Amcaoğlu said swift steps would be taken to ensure that industry and tourism, two of the country’s leading sectors, can access energy at lower costs.
Sercan Görgüner Bahçeci, vice chair of the Turkish Cypriot Chamber of Industry, said industrial users currently pay TL 9.80 per kilowatt-hour for electricity, calling it an extraordinary production cost for Turkish Cypriot manufacturers.
Bahçeci said a Türkiye-based company plans to invest $50 million to $60 million to build a 50-megawatt solar power plant in Serhatköy, including 25 megawatts with storage capacity.
“The plant is planned to come online around 2028,” Bahçeci said. “Once this investment is realized, about 60% of the electricity needed by industry can be supplied from here. This will reduce the share of energy costs in production.”
Bahçeci noted that the TRNC has $170 million in exports compared with $3.5 billion in imports, stressing that greater support for the domestic industry is needed to boost production. He added that there is a need to invest in areas such as orange juice processing facilities and tomato paste production centers.
