Filenews 20 June 2024 - by Chrysanthos Manoli
The many consecutive days with temperatures well above 40 degrees in early June, as well as the estimates of meteorologists worldwide that this summer will be particularly hot in the Mediterranean, no longer allow the competent authorities in Cyprus to rest on the assessment that electricity sufficiency is ensured "marginally".
No society or economy can feel safe with estimates of "marginal adequacy unless serious damage occurs."
Phileleftheros reports that the President of the Republic and the Minister of Energy made it clear yesterday to the president of EAC that the (ongoing) procedures for the installation of two new flexible generators (gas turbines) at Dhekelia station, with a total capacity of 80 megawatts, must be rapidly promoted, so that in the summer of 2025 there will be more electricity available from the Electricity Authority.
However, Phileleftheros reports that the Commissioner of State Aid has advised, at the request of the Ministry of Energy, that the harmonizing legislation on state aid may be violated if the cost of installing the two generators in Dhekelia is covered with the money of all electricity consumers and not only with the money of EAC customers. The initial information of "F" states that the Superintendent allegedly considers that if customers of private electricity supply companies (exclusively large commercial and industrial consumers) are asked to pay the cost for EAC's new generators, there may be an issue of irregular state aid to EAC.
As we wrote before, EAC considers that commercially and business-wise, the investment (approximately 80-90 million euros) for the two new generators in Dhekelia with conventional fuel (diesel or natural gas) is not economically viable for EAC and will burden its customers financially, as there is a continuous increase in the rate of photovoltaic penetration in the country's energy potential.
EAC has long asked for the cost of installing the two new generators in Dhekelia to be covered by all consumers (its own customers or private companies), through a small charge in the form of a Public Utility Services (PSO) fee, so that not only its own electricity tariffs increase and its own customers (mainly domestic consumers) do not pay. EAC argued that the installation of the two generators is not its own investment policy, but an urgent need of the country's electricity system, as without these generators there will be a problem of electricity adequacy in 2025 and the following years, but -even worse- a problem of system stability, as it is officially confirmed that Cyprus' electricity needs cannot be safely covered without sufficient production from Dhekelia, the only power station in the eastern part of the country.
In short, EAC considers that the urgent need to install the two generators in Dhekelia in 2025 should lead to an exemption from EU legislation, so that EAC's costs are covered by all consumers and not only its own customers.
As mentioned above, the Commissioner of State Aid has reportedly advised that this may conflict with state aid legislation. However, he reportedly pointed out that the Republic of Cyprus has the right to apply to the competent authorities of the European Commission in order to obtain a derogation due to a serious problem in electricity adequacy and to proceed without problem with the strengthening of production from Dhekelia as soon as possible.
We are informed that this is the wish of the President of the Republic and in this direction are the instructions given to EAC.
