PEC’s investment in the critical energy sector will add 260 MW of new generating capacity, immediately strengthen the reliability of the power grid, and reduce electricity prices by 30%.
Electricity is an essential commodity for every household and a prerequisite for the operation of every business. That is why the price of electricity directly affects the daily lives of each and every one of us and the entire economic activity of the country.
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For a country with a small and isolated power grid, such as Cyprus, sufficient generation capacity, flexibility, and alternative options are essential to meet demand. The particularly high demand during the summer months and instances of limited electricity availability have made it abundantly clear that energy sufficiency cannot be taken for granted.
This is why the investment by Power Energy Cyprus Ltd (PEC), a member of the Cyfield Group, is of particular importance. The first private power plant in Cyprus, with a total value of €210 million and an installed capacity of 260 MW, is capable of covering approximately one-third of current electricity generation needs. It is therefore not a small supplementary facility, but a new and significant source of electricity that can substantially strengthen the system’s resilience. Especially during periods of high demand, the PEC plant will substantially help the power system meet consumer needs without operating at the limits of its capacity, as is currently the case.
At the same time, the entry of new power plants creates the conditions for a market with more choices, greater flexibility, and more efficient services, as increased competition ultimately benefits consumers. Specifically, the PEC facility is the only realistic way to effectively reduce the price of electricity by 30%.
In fact, PEC has made the necessary adjustments to be able to adapt to the current conditions. The initial design and the delay in the arrival of natural gas in Cyprus led Cyfield to readjust its plans and operate the plant on diesel in the first phase. This will immediately bolster the island’s energy self-sufficiency and provide Cypriot consumers with more affordable energy.
The work and preparations for the plant’s operation have been completed. To enable its launch, all that remains is to complete the process of connecting it to the grid and to ensure the operation of the pumping station unit. Resolving this specific issue will pave the way for the utilization of this major power generation infrastructure, which is ready to be integrated into the energy system at any time. It is worth noting that the pumped-storage plant’s infrastructure was constructed in accordance with guidelines from the Ministry of Defense, as part of offset projects valued at €2 million.
Therefore, its utilization should not be viewed merely as a business matter. It concerns the overall functioning of the electricity market and Cyprus’s ability to secure more available generation options. Furthermore, its development is part of broader energy planning, as Cyprus’s energy transition cannot rely on a single solution. The country needs to make greater use of renewable energy sources, in combination with energy storage, flexible generation, modern infrastructure, and a grid capable of effectively managing all these sources. In this collective effort, PEC’s investment serves multiple purposes. On the one hand, it offers greater reliability, increased competition, and better prices for consumers. On the other hand, it creates jobs, leverages expertise, stimulates the domestic economy, and boosts the country’s energy ecosystem.
This is precisely why Cyprus cannot afford to let such investments remain on paper. These investments must be transformed into real productive capacity. That is why a partnership between the private and public sectors is essential. The private sector will contribute capital, expertise, and new infrastructure, while the government will create an effective and predictable framework so that these investments can be implemented in a timely manner to advance our common goal. What is that goal? Why, of course, an electric system with greater reliability, greater resilience, and real choices for consumers. Because we don’t just need a system that meets today’s needs. Instead, we want a sustainable energy system that supports Cyprus’s development in the long term and for future generations.
