Filenews 30 August 2025 - by Angelos Nicolaou
Cyprus, although late in relation to other European countries, is attempting a balanced transition to clean energy. The success of the project will depend on its technical implementation, but, above all, on political will and administrative monitoring until its completion.
If the plan is implemented, the Republic of Cyprus will take important steps to ensure its energy sufficiency while reducing industrial emissions, through the compliance of the power plants of the Electricity Authority of Cyprus (EAC) in Dhekelia and Vassiliko with the revised European legislation on industrial emissions.
Cyprus, recognising the inherent difficulties it faces as a small and isolated electricity system, has submitted to the European Commission a request for a derogation from the strict emission limit values, as well as a comprehensive Compliance Plan, based on Article 34a of the revised Directive 2024/1785/EU. The plan includes a package of measures that are expected to be fully implemented by the end of 2029.
The derogation specifically concerns Steam Production Units 1-6 of the Dhekelia Power Station and 1-3 of the Vassiliko Power Station, which operate with heavy fuel oil and are unable to fully comply with the existing limit values for sulphur dioxide, nitrogen oxides and dust. The units in Dhekelia do not have anti-pollution systems, while those in Vassilikos have been damaged due to the malfunction of equipment installed in 2020.
The possibility of derogation, if achieved following technical consultations between the Republic of Cyprus and the European Commission, allows for the continuation of the operation of these plants until 31 December 2029, provided that no significant pollution is caused and that alternative, less polluting measures are applied.
This exception is considered to be very important, as it ensures an extension to the Republic of Cyprus, until the end of 2029, in order to enable the implementation of the necessary projects and infrastructure related to the energy system, which will allow the withdrawal of the six steam production units of the Dhekelia Power Station, or their reduced operation to reserve levels, as well as the compliance of the three steam production units of the Vassiliko Power Station with the advent of Natural Gas.
Specific actions with timetables were approved by the Ministerial
According to a proposal presented to the Council of Ministers last Wednesday by the Minister of Agriculture, Rural Development and Environment, the Compliance Plan includes specific projects and actions, with defined implementing bodies and strict timetables:
● Arrival of natural gas by mid-2026, with extensive operational controls and conversions of EAC units in Vassilikos.
● Installation of new production units in Vassiliko by EAC and private individuals (PEC and Paramount), as well as upgrade of the infrastructure of Dhekelia, by the end of 2027.
● Reinforcement of Renewable Energy Sources (RES), aiming to increase the installed capacity of photovoltaic and wind power plants by 2030. It is planned to increase for photovoltaics from 705MW to 1,080, for wind from 158 MW to 170 MW and for biomass from 12 MW to 27.
● Installation of energy storage systems with a total capacity of 160MW (40 in 2026 and 120 in 2027) and electrical interconnection between Cyprus, Greece and Israel (Great Sea Interconnector), which amounts to at least 15% in 2030.
● Upgrading of the transmission system, through the Ten-Year Transmission System Development Program (DPASM), and dealing with high short-circuit currents in the area of Vassilikos, projects necessary to limit the operation of the old units.
The Council of Ministers approved the proposal of the Minister of Agriculture for the approval of the Programme of Measures of the Compliance Plan, the assignment of responsibilities to the competent bodies for the implementation of the projects, the quarterly submission of progress by each body to the Department of the Environment and the authorization of the Director of the Department of Environment to monitor and inform the Council of Ministers on a semi-annual basis.
What to expect from the Commission
The European Commission has requested from the Republic of Cyprus, in its letter of 16 June 2025, additional clarifications and information on the effectiveness of the Compliance Plan and on ensuring that no significant pollution will be caused, as well as that the implementation of the plan will lead to compliance within the established timelines. The submission of the requested data has been assigned to the Department of the Environment and is expected to be completed within the next few days.
In the event that there are no objections from the Commission within 12 months of the submission of the plan (which took place on 4 February 2025), the derogation request will be considered approved.
Given that, with the submission of the Compliance Plan, the Republic of Cyprus is committed to and is accountable to the Commission for its timely and successful implementation, a programme of measures has been drawn up, in which the following are recorded in detail:
>> The projects and actions that need to be taken and have been incorporated into the Compliance Plan.
>> The competent bodies/authorities that are responsible for the implementation of each project/action.
>> The relevant timetables for the implementation of the above projects/actions.
Transition and gradual compliance perspective
The Republic of Cyprus is investing in the gradual de-dependence on heavy fuel oil and the complete modernization of its energy system. From 2027 onwards, with the use of natural gas, the entry of new units and the completion of critical infrastructure projects, the existing units of the Dhekelia Power Station will drastically reduce their operating hours (up to 500 hours per unit per year). Under the same conditions, the units of the Vassiliko Power Station will operate up to 1,500 hours per unit per year, from 2030 onwards.
The measures included in the Compliance Plan of the Republic of Cyprus
The Compliance Plan submitted by the Republic of Cyprus to the European Commission under Article 34a of Directive 2024/1785/EU, includes a series of targeted interventions and projects aimed at:
1. Minimizing the size and duration of pollutant emissions.
2. Managing demand and switching to cleaner fuels or alternatives.
3. The reduction of the operating hours of EAC steam power plants.
