Saturday, February 22, 2025

THE GOVERNMENT CHOSE A 'HORSE' - SUPPORT OF EAC FOR PRODUCTION, STORAGE, SUFFICIENCY

 Filenews 22 February 2025 - by Chrysanthos Manoli



From what has been discussed in the last 24 hours between the President of the Republic, the Minister of Energy, the leadership of EAC, the Transmission System Operator and CERA, it is concluded that the Government has concluded that its most important -natural- ally in the difficult effort to address the extremely difficult problems that exist for the short- and medium-term assurance of electricity sufficiency and gradual EAC remains the cost reduction for electricity consumers.

It is also clear from the information we receive from what has been discussed in recent days and from what has been submitted in writing, on the occasion of the ordeal that the electricity system of Cyprus is going through, that the Government has accepted that the strengthening of electricity production by conventional means (generators using oil and later natural gas) is necessary and urgent. As the increase in the penetration of photovoltaic systems in the electrical mix, which will continue, does not ensure electricity sufficiency at peak hours, both for the winter and summer months.

In short, the old option of freezing the power of conventional means of generating electricity, thanks to the green transition, which was presented as a one-way street, is being abandoned, according to current indications.

New diesel units

Energy Minister George Papanastasiou met yesterday with executives of the Cyprus Transmission System Operator, discussed with them the daily difficult battle waged by the Operator and EAC to meet electricity demand and after the meeting confirmed yesterday's Fileleftheros report that the die was cast for the installation of two new gas turbines in Dhekelia. for at least 80 megawatts of capacity, even if the bids received are considered too salty.

In addition, the minister said that EAC is proceeding with the storage facility in Dhekelia (already licensed by CERA) with a capacity of 45 megawatts, but will also submit a new request for batteries with a capacity of another 40-45 megawatts to support the network.

Papanastasiou said that support is also expected from private producers of photovoltaics, through the use of the recently announced subsidy scheme for the installation of storage systems and the sale of energy at capped prices to EAC Supply, in order to gradually reduce the average electricity cost for all consumers.

In statements after the meeting with executives of the Transmission System Operator (TSO), Mr. Papanastasiou explained that the replacement of generators in Dhekelia is one of the main axes of the actions implemented in order to reduce the cost of electricity.
Another key axis, as he said, is to increase the share of Renewable Energy Sources (RES) in the mix of all electricity, underlining the importance of creating energy storage units from RES. He also referred to the issue of cuts in the use of energy from photovoltaics, saying that this was limited.
Regarding the installation of new generators in Dhekelia, Mr. Papanastasiou noted that "EAC is already in the tender process and we as a Ministry have strengthened this process, giving the message that the change of the engines located there will proceed immediately".

As Phileleftheros wrote yesterday, the green light to EAC for the final evaluation of the three tenders for the gas turbines in Dhekelia was given on Thursday, during a meeting chaired by Mr. Papanastasiou, in the presence of EAC officials and leadership. The award procedures should run quickly and be concluded by early March. General Electric's engines appear to be the preferred choice, costing around €148 million.