Things will be dark in the coming years for electricity consumers, who, it is not enough that they dig deep into their pockets for the cost of electricity, will also have to face the risk of interruptions in the electricity supply due to electricity inadequacy in the coming years.
And in order to address the adequacy problems, consumers will have to bear new, significant, burdens.
The additional cost is considered unavoidable, as CERA has decided to activate the power mechanism, provided for by Article 34 of the Law on the Regulation of the Electricity Market. Essentially, Article 34 of the law acts as a safety net when the power margins of the system fall to dangerously low levels, below the critical safety limits, and there is a risk of power outages.
The power mechanism is the alternative scenario to cover the energy "hole", through the emergency installation of new generators, in order to cover the energy deficit from the untimely arrival of natural gas, the non-implementation of the electrical interconnection and the obligation of the state, to the EU, to withdraw polluting units from the Dhekelia station.
Additional financial burdens
Before the Parliamentary Committee on Energy, the president of CERA, Polyvios Lemonaris, said yesterday that the implementation of the mechanism entails a cost, which is borne by the consumer.
In fact, he cited as an example Ireland, which implemented the mechanism due to the energy deficit and the cost amounted to €1.5 billion.
However, what is of greater concern is CERA's admission that, even if there is an arrival of natural gas in Cyprus in June 2028, it will take 18 months of a trial period before the units can be put into operation using the new fuel.
Therefore, everything suggests that it will be difficult to avoid additional costs for consumers.
"Hole" 720 megawatts
In the meantime, the competent authorities were alerted by the findings included in the worst-case scenario study carried out by CERA.
According to the worst-case scenario, in 2030 it is estimated that a "hole" of 720 megawatts will arise in the energy balance, if there is no arrival of natural gas in Cyprus, the electrical interconnection does not operate and the conventional EAC units are withdrawn, due to the green transition and the environmental commitments to the Commission.
According to the president of CERA, after examining the worst-case scenario, the Ministry of Energy was informed about the findings and, together with the Energy Transmission System Operator, activated Article 34 of the law in the event of non-arrival of natural gas and non-operation of the cable.
He said that, in case the problems of energy sufficiency are not solved by 2031, the Republic will turn to the European Union to activate the power mechanism.
He indicated, at the same time, that the Ministry of Energy activated working groups with CERA and the Transmission System Operator, which operate preventively.
"And the situation will become very serious if the arrival of natural gas is not implemented. The arrival of natural gas in June 2028 will allow tests to be carried out at EAC units, so that by 2030 they will be in operational condition," added Mr. Lemonaris.
For his part, CERA member Akis Hatzigeorgiou warned that if the power mechanism is delayed in working, problems will be caused again, as the procedures for activating the mechanism take four years.
"Until new units are introduced, we will have to make do with the existing ones, which are outdated. 30 years ago we put natural gas combustion engines in Vasilikos and they burn diesel. What we experienced in the summer we may experience again, due to the outdated machines," he added.
