Filenews 5 March 2025 - by Chrysanthos Manoli
As expected, the bride for the state's regressions -for years- for the closure or further utilization and upgrade of the Dhekelia power station, in order to ensure uninterrupted electricity supply in all free areas and stability in the system, will be paid by the EAC customer and the Electricity Authority itself.
And indeed, at the risk of disturbing its economic equilibrium and -ultimately- creating serious damages, as its executives and technocrats warn.
Information from the open energy fronts indicates that the European Commission, through its Directorate General for Competition, insists that the addition of two gas turbines in Dhekelia, in order to ensure electricity sufficiency -especially in the eastern part of the system- and to avoid instability in the system, must be financed by EAC and its customers, as for the installation of these generators no tenders were announced among potential interested individuals.
The Government's objection that it is impossible to find investors who could, within the very tight time frames required by electricity needs, designate suitable land for their electricity production of at least 80 megawatts from the southeastern part of Cyprus and secure permits from CERA, Town Planning, EDA and local authority, In order to produce electricity within a year or two, he did not convince the Commission. Which indicated that the competent authorities of the Republic can proceed with the installation of the two generators by EAC with these -pressing- data, provided that the depreciation of the investment will be undertaken by EAC and its customers, not the (increasing) customers of private electricity producers and suppliers.
Yesterday's meeting at the Presidential Palace, chaired by President Christodoulides, in the presence of the Minister of Energy, CERA, the Transmission Operator and EAC, concluded that EAC must swiftly award a tender for the two generators, regardless of the source of cost financing.
Fileleftheros reports that at yesterday's meeting it became clear from the government side that the Commission's position is respected, but the coverage of the country's energy needs safely, as well as the viability of EAC, is not under negotiation with anyone.
Therefore, it is expected that in the next few days EAC will have to take a decision on the award of one of the three tenders it has in its hands for the two generators. It is not clear whether all three bids – or even one of them – were deemed by the Evaluation Committee to meet the technical requirements for the final stage of approval. Until a few days ago, the information available indicated that the two proposals concerning Siemens machines were not accepted, due to unsatisfactory flexibility in their use. The proposal (of Greek TERNA) for General Electric gas turbines was considered technically more appropriate from the outset (due to the flexibility in the use of generators), but their cost (€148 million) is considered excessive, compared to the initial budgeted cost, which was around €80 million.
Therefore, EAC is called upon within the week or at the latest early next week to take a very important decision for itself but mainly for the country's electricity system: To accept or reject an offer that for the Authority itself is business-damaging in the long run (due to competition from photovoltaics), but for the country and the Cypriot electricity system it is absolutely necessary and urgent, with the will of the Presidential Council. And the cost is to be borne by itself and its customers. Which already does not include the 10% of consumers, consisting of large commercial and industrial consumers.
