The prolonged delay and uncertainty regarding the arrival of natural gas in Cyprus is leading to a readjustment of the initial plans and designs on the basis of which one of the largest private energy infrastructure projects in Cyprus was prepared and implemented.
With the construction of the terminal in Vasislikos going through complications and the time horizon for its completion remaining undetermined at this time, the private power generation unit of Power Energy Cyprus (PEC), with a capacity of 260 MW and undertaken by Cyfield, is being forced to move towards alternative solutions and is preparing to be put into operation by next March, using oil (diesel) as fuel for electricity production.
Speaking to InBusinessNews, the CEO of Power Energy Cyprus (PEC) and President of the Electricity Market Association (EMA), George Chrysochos, indicated that the decision to use diesel in power generation was made precisely because of the uncertainty and conditions related to the delay in the arrival of natural gas.
"This is a more expensive and more polluting fuel than natural gas, but it is an emergency solution that we came up with due to the particular market conditions," he said.
Based on PEC's new operational plan, the goal is to have it operational by March, in order to address - in combination with EAC's 160 MW unit 6, which will also operate on diesel - the serious problem of electricity adequacy in view of the upcoming summer season.
"Based on the timetable that has been set and if everything goes well, by March the unit will contribute to solving the electricity sufficiency problem for the coming summer, even producing cheaper electricity that will contribute to reducing the price of electricity," Chrysochos underlined.
As mentioned above, the first private conventional power plant (PEC-Power Energy Cyprus) is one of the largest projects in the energy infrastructure sector of Cyprus.
The €200 million investment aims to modernise and strengthen Cyprus' energy sector, marking the de facto liberalisation of the electricity market.
With the first private power plant, the Cypriot consumer is expected to benefit from cheaper electricity, as well as the ability to choose between more electricity suppliers.
The beginning of the competitive market
At the same time - and in the same context -, the launch of the competitive electricity market is considered crucial, with the first day of trading of the AAA set for 1 October, 2025.
However, as noted before the annual general meeting of the Electricity Market Association (EMA), the Association's President, George Chrysochos, the success of the EMA will not be judged solely by the date of its activation, but by whether all the necessary reforms in the energy sector will be fully and comprehensively implemented, including the arrival of natural gas, the upgrading of the network and the implementation of energy storage projects.
What is certain is that the entry of new players and the creation of a truly competitive electricity market are expected to address distortions, reduce energy costs and offer significant opportunities for the Cypriot economy.
(Source: InBusinessNews)
