This paper presents the energy policy of the Republic of Cyprus government controlled areas from 1960 till 2006. It describes the sectors of electricity, petroleum, natural gas and renewable energy sources. It also deals with the marine layers of oil and with environmental aspects. The energy policy of Cyprus is harmonized with that of the European Union according to its national obligations, having as its guidelines to secure competition in the market and to fulfill the energy needs of the country, with the least burden to the economy and to the environment. The future plans and targets of Cyprus related to its energy strategy are also presented.