While the cost of electricity remains at particularly high levels and while the risk of new power cuts during the summer months remains visible, a large private investment in the electricity generation sector is still on hold, due to pending issues that can be resolved, provided there is the necessary will.
This is the first private power plant of Power Energy Cyprus Ltd, a subsidiary of the Cyfield Group, an investment exceeding €200 million and which is expected to substantially enhance the country's electricity sufficiency.
The station is designed to operate with natural gas, when it becomes available in Cyprus, with the ability to produce electricity at a price up to 30% lower than current levels.
Until then, due to the delay in the arrival of natural gas, the company has made the necessary modifications so that the unit can temporarily operate on diesel, immediately strengthening the energy offering.
The importance of the project has been highlighted since 2019, when, during the laying of the foundation stone, the then President of the Republic, Nicos Anastasiades, had characterised the station as of strategic importance for Cyprus, noting that it is an infrastructure project of a reformative nature, capable of changing the electricity map in the country.
The progress of the project and the issue that arose
The project secured a planning permit in 2014 and a building permit in 2018, while construction work began in 2019. Its construction is currently in its final stages, with the station very close to the point where it can be put into operation.
However, an issue raised by the Electricity Authority of Cyprus in 2023 has created delays in the process of completing and renewing the relevant permits. Specifically, in November 2023, the EAC complained to the former Auditor General that part of the station's infrastructure, specifically the pumping station, was built on Authority land.
For the record, the pumping station had been constructed on the specific plot following relevant approvals, at a point bordering the 'Evangelos Florakis' Naval Base. After the complaint, the issue entered a process of examination and exchange of views among those involved, which resulted in the project's implementation being affected.
According to information, efforts are now being made to find a practical solution, including the possibility of moving the pumping station to a nearby plot. The aim is to remove the obstacles that have arisen, without further affecting the ability to operate an infrastructure that is considered critical for the country's energy sufficiency.
The risk of cuts exists
The issue has been pending for several months, resulting in the overall progress of the project being delayed. And this is happening at a time when electricity needs are increasing, while Cyprus's electricity system is tested every summer by increased demand.
The possibility of electricity cuts is not just a theory, especially in view of the summer season, when consumption increases significantly. After all, the problem had already appeared in August 2025 when cuts were made in specific areas in order to cope with increased demand.
At the same time, increased needs for electricity are also linked to other critical infrastructure, such as desalination plants, which are becoming increasingly necessary to meet the country's water needs.
Within this context, the operation of a new electricity generation unit can provide substantial relief to the system. It can enhance efficiency, add production capacity in a period of increased pressure and contribute to the functioning of the Competitive Electricity Market with more participants.
The need for decisions
The challenge now is to find an operational solution immediately, so that the project can proceed without further delays. The pending issue concerning the pumping station is real and needs to be addressed in an institutionally correct manner. At the same time, however, the overall importance of the station for the energy system cannot be ignored.
Cyprus is in a period where it needs more production, more energy security and more investments that can enhance competition and reduce costs for businesses and households. Given this, every month of delay in a project of this scale has a practical impact.
The country's first private power plant is not just a business investment. It is an infrastructure that is linked to the adequacy, competition and ability of Cyprus to meet its growing energy needs. For this reason, resolving the outstanding issues is now considered a matter of broader public interest.
The next period is expected to be decisive. If the parties involved reach a solution, the station will be able to enter the final stretch for operation, adding a new, necessary source of production to Cyprus's electricity system. Otherwise, the country risks remaining faced with the same problems that have plagued consumers, businesses and the economy itself for years.
(Source: InBusinessNews)
