Filenews 17 August 2025 - by Christakis Hadjilaou
Cyprus is going through a critical period in the key electricity sector, as many important production and infrastructure projects are either at the planning stage or at the implementation stage.
Despite the technological potential and the European Union's pressure for a green transition, the country's energy policy in the electricity sector remains inadequate, uncoordinated and fragmented, with the cost of wrong decisions being passed on to consumers.
Lack of strategic planning
The absence of strategic planning on a long-term basis is clearly reflected in the failures of the state in terms of:
- ensuring adequate adequacy and security of supply;
- the operation of new conventional production units,
- the advent of natural gas,
- the timely implementation of the electricity interconnection with Crete and
- the coordinated penetration of renewable energy sources (RES) with storage.
The lack of strategic planning for electricity production leads to fragmented and case-by-case decisions, which are guided by the market or other expediencies and not by techno-economic criteria or the security of supply of the electricity system.
An indicative example of the lack of strategic planning is the shortage of electricity this year in the summer of 2025. It is noted that, although there is an "available" conventional production unit of 160 MW at the Vassiliko Power Plant, it cannot operate because it has been licensed exclusively for the use of natural gas, which has not yet reached Cyprus.
We will then attempt to analyze the management of critical issues in the electricity sector, where the lack of strategic planning is proven in practice.
Insufficient production in electricity
Failure to integrate new conventional generation units significantly increases the risk of electricity shortages for the coming years, especially in view of:
- the growing demand for electricity,
- extreme weather events - such as prolonged heat waves and excessively cold winters - and
- of the technical limitations/failures of the old conventional units of the EAC, as a result of the stress they suffer in relation to the uncontrolled penetration of RES.
This year, in the summer of 2025, Cyprus has experienced and is experiencing critical but at the same time unacceptable moments in electricity. The system operates almost daily marginally - without sufficient electricity production- resulting in even electricity cuts for consumers.
Downgrading of the role of the Dhekelia HS
In addition to the tragic shortage of electricity, the planned conversion of the Dhekelia Hydropower Station from a strategic pillar of secure supply to a backup station is also of particular concern.
By 2029, 360 MW of steam turbines are expected to be retired and replaced with only 80 MW of gas turbines and 160 MWh of storage – which constitutes a serious degradation and cancellation of the Dhekelia Hydropower Plant as the second central supply point of the electricity system with conventional production.
Geographic overconcentration
The overconcentration of almost all conventional production in Vassiliko is the Achilles' heel of the Cyprus electricity system. The electrical system remains particularly vulnerable, even for generalized blackouts, to any:
- serious damages;
- major natural disasters and
- hostile actions.
The explosion in Mari in 2011 was a painful example. Despite the lessons of that period, today's plans ignore the need for a geographical distribution of electricity. The planned downgrading of the Dhekelia Reservoir and its conversion into a backup station guarantees the dangerous supply of the system almost exclusively from the area of Vassilikos.
A timeless fiasco
The most significant and costly failure concerns the multi-year delay in the arrival of natural gas, despite the repeated announcements and commitments of successive governments.
This delay is not only political or administrative and has already cost consumers hundreds of millions of euros, due to the use of polluting and expensive fuels.
It is noted that two new conventional generation units - EAC (160 MW) and PEC (260 MW) - remain inactive, as they have been licensed exclusively for operation with natural gas. The latest developments postpone the arrival of natural gas even more slowly, with a horizon of 2028.
Electricity interconnection between Cyprus and Crete
The Great Sea Interconnector (GSI) project, which aims to connect Cyprus with Crete and the European electricity grid, is ambitious, but comes with significant uncertainties and serious risks:
- Geopolitical tensions due to the passage through maritime areas with Turkish claims,
- technical difficulties of implementation, and
- Potential Sustainability Problem
If Cyprus invests too much in its interconnection plans, without boosting domestic production and reserves, a possible delay or failure of the project could lead to a serious energy crisis.
Uncontrolled development of RES without storage
Despite the rapid development of RES, this is happening uncontrollably, without the accompanying development of storage infrastructure, resulting in frequent and extensive cuts in RES production, as well as marginal and dangerous operation of the electricity system.
It is characteristic that for 2025, the Cyprus Transmission System Operator has forecast RES production cuts of 22%.
Changing course in electricity
Cyprus cannot continue without a coherent, institutionally enshrined and long-term strategic plan for power generation. Therefore, in order to get out of the quagmire in the electricity sector in Cyprus, a change of course is needed with:
1. Establishment of an independent body for strategic planning, which will evaluate, plan and coordinate on a long-term basis production projects with technical, economic, environmental and geopolitical criteria.
2. Balanced geographical distribution of conventional production, in order to ensure a secure supply of the electricity system. In particular, a decision must be taken immediately to maintain two basic strategic security pillars for the supply of electricity (Vassiliko and Dhekelia Hydrochloride) and to cancel the almost exclusive supply from the Vassiliko area.
3. Ensuring satisfactory electricity sufficiency.
Conclusions
Cyprus is facing an energy impasse. If decisions are not taken immediately with documented strategic planning, the country risks falling behind not only in the energy transition, but also in its most basic obligation: to provide reliable, economically viable and safe electricity to consumers.
* Electrical engineer, with many years of experience in the operation of the Electrical System
