Filenews 17 December 2022 - by Angelos Nicolaou
As of January 2022, EAC was obliged to withdraw the six steam turbines of the Dhekelia power station, which produce approximately 25% of the total electricity of Cyprus. The units exceeded the 18,000-hour operating limits granted by way of derogation from 2010. In the last month, an effort has been made to continue the operation of the units until 2029 and at a recent meeting in Brussels the issue of a derogation was raised and the reasons that do not allow the withdrawal of the operation of the units were explained.
Brussels raised the question of why Cyprus bases energy sufficiency and safety on six steam plants of old technology, which have already completed more than 40 years of operation and for which there is a high probability of failure. The answer given essentially confirms the Commission's concerns since there was talk of the operation of a number of new power plants either in Dhekelia or in the central-eastern part of the transmission system. In fact, in an intervention by a representative of the Cyprus Transmission System Operator (TSO), the necessity of operating conventional units in Dhekelia or other transmission systems was stressed, since there are restrictions on the existing electricity transmission network and they do not allow practically all the eggs to be put in one basket, with the almost exclusive feeder being the Vasilikos Transmission System. It was stressed on behalf of the TSO that even with the advent of natural gas and the operation of private power companies again in Vasilikos, it is not certain that the various problems that occur in the transmission network will be solved so that Vasilikos can function as an exclusive feeder and cover all the needs of Cyprus.
Of course, the Dhekelia station cannot be closed because, as it appeared after the decision of the EAC staff not to participate in any activity at the plant, the only reaction on the part of the government was to proceed with power cuts in order to ensure the safety of the electricity production system.
According to EAC staff, the six steam power plants of Dhekelia Power Plant operate illegally and contribute to cost increases and profiteering phenomena. For its part, EAC considers that "the continuation of the operation of the six steam power plants of the power station in Dhekelia is considered necessary today for the purposes of production adequacy, safe operation and stability of the electrical system".
In statements, the Minister of Energy, referring to the Dhekelia power station, noted that a high-level meeting has already been held with the European Commission, "where presentations have been made of a very serious project that has been carried out by a special working group, including EAC executives and we have a positive approach and positive results in relation to the intention of the European Commission to give us some derogation".
According to information provided by "F", the representatives of the Commission do not seem to have been convinced during the bilateral meeting held in Brussels on 25.11.2022 and are expected to come back with specific questions that they expect to be answered in writing by the Cypriot authorities regarding the continued operation of the EAC power plants in Dhekelia. Furthermore, it seems to have opened up the Vasilikos issue and the problems that exist with the anti-pollution systems. Therefore, it is expected that all clarifications will be given to examine the request for derogation at a meeting at a meeting under President Anastasiades and in the presence of all parties involved in energy planning and the security of the electrical system. In addition to the Ministers of Energy, Agriculture and Finance, representatives of CERA, TSOC and EAC are expected to participate in the meeting.
Of course, EAC was aware that a derogation will be requested until 2029 and may not have taken part in the consultations, but the arguments it puts forward in this direction are: "In the context of the dynamically changing power generation environment and within the framework of EAC's responsibilities, the Agency's assistance was requested for participation in the Working Group for the preparation of the action plan and timetable for the deactivation of the Steam Units at ES Dhekelia".
During the meeting, it was admitted by the Republic of Cyprus that problems of licensing and non-compliance with the provisions of Directive 2010/75 / EU on Industrial Emissions (IED), in addition to the Dhekelia Power Station, also arise in the Vasilikos Power Station.
Paramount's building permit stuck in the District Officer of Larnaca
Things would be different today if the two private gas-fired power stations in Cyprus were in operation. That is, Cyfield, which holds the license to build the PEC (Power Energy Cyprus) power station with a capacity of 260 MW in Vasilikos, and is expected to operate in the summer of 2024. Also, paramount with a capacity of 105 MW, a unit that received all approvals, except for the building permit from the Larnaca District Administration and therefore the bet to operate in 2023 has long since been lost, despite the fact that the planning permission was given in 2021. By the summer of 2025, the sixth unit of EAC with a capacity of 160 MW in Vasilikos will be put into operation. It is noted that the energy produced by the Dhekelia station reaches 360 MW.
Speaking to "F", George Chrysochous, managing director of PEC, said that very soon cheaper electricity is coming from private individuals. He explained that households and businesses will now be able to choose private companies as their supplier that will offer cheaper electricity. He noted that in April 2023 the steam turbines and generators will be installed, and therefore they will be able to operate the unit at any time. He added, however, that the advent of natural gas also determines the start of operation of the first private power plant, which is expected to take place in the summer of 2024.
However, it remains unknown when the Paramount Energy plant will be operational, and this is because although it has received environmental and planning permission, it has not received the building permit in order to start the works. The Ministry of Energy, precisely because it considers the operation and inclusion in the electricity generation system of Cyprus of private power plants extremely important in relation to ensuring the adequacy of electricity in our country, has sent a letter to the Minister of Interior since last June requesting the acceleration and completion of the licensing process of the Paramount plant.
INTERVENTION
Further RES penetration
One of the issues raised by the Commission's delegation to the authorities of the Republic concerned the fact that Cyprus places great emphasis on the advent of natural gas, while it could focus on further development and penetration of RES, taking into account its climatic conditions. In response, the Cypriot delegation referred to the necessity of the advent of natural gas, with the justification that the power generation system with the data of Cyprus, cannot be fully based on RES, especially due to its isolated nature. In part, the response of the Cypriot authorities is correct. However, we expect new planning with the areas that could host RES projects, as well as to give priority now to projects that have electricity storage systems for grid stability purposes.
