Filenews 21 February 2025 - by Chrysanthos Manoli
EAC will proceed in the coming days with the procedures for the final evaluation and the decision whether it will accept any of the three offers received for two new generators in Dhekelia, which will burn diesel and not natural gas, since it is not expected that this fuel will be transported there in the next many years. even if it becomes possible to exploit it in Vasilikos within the next two years.
However, it is estimated that the two new generators will be more flexible in their use, will have much better efficiency compared to the six obsolete steam boilers of Dhekelia, which "fight" at the expense of the consumer's pocket and at the expense of the environment, burdening the cost of purchasing greenhouse gas emission rights.
Yesterday's meeting
Phileleftheros is informed that yesterday a broad meeting was held at the Ministry of Energy under Energy Minister George Papanastasiou, in the presence of members of the board of directors and management of EAC and other officials.
The issue of two generators in Dhekelia, with a total capacity of 80 megawatts, was discussed, which is considered extremely urgent, not to overcome the risks of lack of electricity sufficiency in some periods in 2025 and 2026 (especially during the summer months), since there is no time for this, but to increase production capacity if possible by summer 2027.
By then, it is possible to achieve the great goal of the last 20 years for importing natural gas, which will also allow the start of exploitation of EAC's 6th brand new unit in Vasilikos (160 megawatts) and the units under construction of PEC (Cyfield), nearby (260 megawatts).
Therefore, it is possible that the adequacy issue is theoretically resolved by the time of delivery of the two new generators in Dhekelia (provided that the tender will be awarded early next March) with the new units in Vasilikos, but EAC, the Transmission System Operator and CERA argue that, even in this possible positive development, It will remain necessary to boost energy production in Dhekelia with the two new generators, due to the importance of this power station for balancing the electricity system, but also because at the end of 2029 the operation of the six obsolete steam turbines of Dhekelia will have to be discontinued, as provided for by the commitment of the Republic of Cyprus to the European Commission.
Urgent decision
Phileleftheros reports that the decision in principle taken during yesterday's meeting at the Ministry of Energy provides for the rapid completion of the procedures for the evaluation of the three tenders and the possible award of one of them.
In other words, the thought that has been made of cancelling the tender procedure and re-announcing another, with different conditions, in order to be able to submit new, more and perhaps cheaper proposals, is abandoned.
However, this would cause a long delay - with the submission of better offers doubtful - and would aggravate the situation, in view of the increase in electricity consumption in the coming years and the reduction of production capacity by EAC, due to the deactivation of polluting steam turbines.
Siemens or General Electric?
Other information in our newspaper insists that EAC is very concerned about some technical specifications that affect the operation and maintenance of the generators offered by two of the companies that participated in the EAC tender.
This is the Greek TERNA, which offered Siemens machines for €107 million. and the Greek AVAX which also offered Siemens machines, but at about 137 million euros. euro. The information indicates that both of these technical solutions require the shutdown of generators every fortnight for maintenance and cleaning of equipment, which is considered to increase operating costs and cause problems in their effective utilization by the system.
A third proposal is before EAC, from TERNA, for General Electric generators, costing €148 million. These generators do not require cleaning-maintenance every 15 days and there are reports that its factory specifications allow quite frequent and fast activation and deactivation, something that is very convenient for both EAC and the Transmission Operator, given the needs for rapid response to fluctuations in demand – production due to the high penetration of photovoltaics in the system, which are affected by weather conditions and in the absence of storage do not contribute to Meeting demand after 5-6 p.m.
Given yesterday's decision by the Ministry of Energy for EAC to proceed with the installation of at least 80 megawatts in Dhekelia within two years, mobilization should be expected in the coming days in the EAC service and in the Board of Directors, as there is information that the tender ends at the beginning of March and it would be a very negative development if time is allowed to pass unused. As a result, a new tender procedure will have to be launched from the outset.
PEC's proposal to use diesel in its plants
We note that on behalf of the private PEC, interests of the Cyfield Group, it has been proposed to officials of the state energy sector to assign it a role of subsidiary coverage of the proper operation of the system, against a financial settlement and compensation, in order to temporarily convert the Siemens generators installed at its under construction station in Vasilikos to use diesel (instead of natural gas). so that they can be put into operation in the second half of 2025, to ensure electricity adequacy.
PEC's proposal does not seem to be discussed by the government side, both for legal-procedural reasons, and mainly because it is considered that PEC's generators, even if it is possible to convert them for diesel use, does not solve the serious problem that both the Operator and CERA and EAC identify: Without sufficient production from Dhekelia, The balance and stability of the system are dangerously undermined.
The PEC side disputes that the stability problems or the presence of short-circuit currents cited by the competent authorities cannot be resolved in order to avoid spending EUR 150-200 million. for the "resurrection" of Dhekelia at the expense of consumers, as it is reported. The company claims that with a much lower EAC expenditure for the construction of additional substations in the Vasilikos area, the problems will be solved and much more power will be available in Vasilikos than the 820 megawatts currently set as a safe roof by the independent Transmission System Operator.
