‘Electricity Authority failing to take consumers into account’

The electricity authority is failing to consider the high costs burdening consumers, the head of Epopai union Kyriakos Tafounas said on Tuesday referring to delays in the upgrade of the old Dhekelia power station, needed to prevent electricity cuts.

In November 2023 the EAC submitted a request for the installation of two new gas turbines of 40 megawatts each, plus an electricity storage unit to the Cyprus Energy Regulatory Authority (Cera). The upgrade is critical as the units operating in Dhekelia are 30 to 40 years old while their lifespan is 25 years.

However, over one and a half years later, and despite EAC’s stated preparations for the purchase and instalment of the units, the upgrade remains uncertain.

Tafounas said the cost of the approximately €80 million update will be borne by consumers since it is considered crucial state infrastructure. Authorities have indicated that despite the pending integration of natural gas and the newer Vasiliko power plant, Dhekelia is needed as a backup until the end of 2028.

In May this year, EAC chairman Giorgos Petrou announced that the contractor for the study and project monitoring had been selected. He said tenders are expected to be issued in July, with the aim of completing the project by 2025.

Another important issue concerns the storage of electricity, which requires intervention from the energy minister. Delays have also been recorded in this area, Tafounas said.

“They [EAC] do not take into account the consumer,” he added. He pointed out that in 2020, prices amounted to 10c per kWh, whereas now they have soared to 25c and are expected to reach 35 or 40c.

He added that the green transition is used as an empty excuse and explained how problematic it is that private foreign owners benefit from it, instead of the money remaining on the island.

Furthermore, efforts to transition to a carbon-neutral economy are doomed to fail if the government does not invest in energy storage facilities as the island’s isolated grid cannot handle the excess load from renewable producers.

Energy analysts indicate that despite the small contribution of renewable energy sources (RES) to the island’s energy production, Cyprus’ grid is overloaded when solar and wind parks reach their production capacity, resulting in the loss of thousands of megawatts.

Suppliers of electricity generated from renewables have complained that some €40 million is discarded every year. According to energy ministry officials, 20 per cent of the energy produced by solar parks and photovoltaic systems is being rejected by the grid. Data from the Transmission System Operator shows that RES contributes 17.2 per cent to overall energy production.