PHAETHON Analyses Third Month of Competitive Electricity Market: Weather, Renewables, and Prices in December 2025
The Republic of Cyprus’s competitive electricity market has now completed its third full month of operation, offering deeper insight into how weather conditions, seasonal demand, and renewable energy availability interact within the new market framework. The December 2025 results reveal market dynamics that differ notably from those observed in October and November, largely due to increased rainfall and the effects of the Christmas holiday period.
This competitive market framework continues to strengthen consumer choice, enhance transparency, and foster innovation across the electricity sector, while supporting Cyprus’s long-term goals for renewable energy integration, energy security, and alignment with European decarbonisation policies.
At the forefront of monitoring and analysing this transformation, the PHAETHON Centre of Excellence (CoE) has published its December Electricity Market Report — the third in a monthly series delivering transparent, data-driven analysis of Forward Market activity, Day-Ahead Market price formation, generation mix trends, and the evolving role of renewables in shaping market outcomes.
“December’s findings show that while renewable energy is already exerting a strong influence on market behaviour, weather variability and system flexibility remain decisive for price formation”, underlined Professor George E. Georghiou, Chief Executive Officer of PHAETHON CoE. “As the competitive market matures, targeted investments in flexibility will be critical to ensure that high renewable penetration consistently translates into lower prices and greater system resilience”.
📊 Key findings from December 2025:
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The average Day-Ahead Market (DAM) price reached €158.76/MWh, exceeding the levels observed in October and November, reflecting increased reliance on conventional generation under reduced photovoltaic output.
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Low- and zero-price events persisted, but were significantly less frequent than in previous months, with at least one MCP below €100/MWh occurring on 15 out of 31 days.
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Forward Market (FM) trading volumes were marginally higher than in October but lower than in November, while the share of subsidised RES–National Grant Plans (NGPs) increased relative to both preceding months.
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Intraday price formation remained closely linked to photovoltaic generation, with price reductions concentrated between 09:30 and 15:00, though adverse weather conditions limited the depth of these declines.
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Market Clearing Prices (MCPs) were primarily driven by the balance between renewable generation and residual load, with conventional units continuing to set prices when residual demand remained high.
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The results underline the critical role of system flexibility, including storage and demand-side solutions, in enabling renewable energy to more effectively suppress prices and reduce volatility.
Taken together, the December results highlight both the resilience and the current limitations of Cyprus’s emerging competitive electricity market, reinforcing the importance of flexibility, weather resilience, and enabling technologies in supporting a secure, efficient, and sustainable energy system.
Further Information
For further information, please contact:
- Professor George E. Georghiou — georghiou.george@ucy.ac.cy
- Dr Andreas Kyprianou — kyprianou.andreas.1@ucy.ac.cy
- Mr Stylianos Loizidis — loizidis.stylianos@ucy.ac.cy
Download Report
You can download the full PHAETHON Electricity Market Report – December 2025 here:
