By Vakis Charalambous

• Head of the AKEL Energy Office
• Member of the AKEL Central Committee

Cyprus is at a critical juncture. It remains energy-isolated, dependent on imported liquid fuels, and faces exorbitant electricity costs. The primary issue is energy security and electricity sufficiency.

Unfortunately, we have reached the point where we are concerned about whether the country will be able to reliably meet its needs. The longer we delay the introduction of natural gas, the upgrading of the grid, the enhancement of flexibility, and energy storage, the more nightmarish the scenarios will become.

The problem is not how much installed capacity we have on paper, but how much is actually available when we need it. The system relies on aging power plants with serious technical limitations, and during peak periods, available generation hovers dangerously close to demand. The situation already resembles a “balance of terror,” a fact confirmed by experts and the European Association of Transmission System Operators itself.

The year 2030 marks a turning point. The decommissioning of 750 MW from Dekeleia and Vasiliko—out of a total of 1,478 MW of conventional generation— creates a dangerous gap, as there are no realistic plans to replace this lost generation capacity. The EAC’s 6th unit (160 MW) and the private power plants (over 370 MW) cannot be taken for granted without natural gas, permits, technical testing, and certifications. Even with the upgrade of the Dekelia plant or the construction of a storage facility—both of which have been dramatically delayed—the problem remains unresolved.

The adequacy of the 2030 supply is being determined today. If the government does not act immediately, the country risks facing serious threats to the security of its electricity supply and even higher costs for households and businesses.

The responsibilities are clear. For more than a decade, the situation was dominated by empty promises, trial-and-error approaches, a lack of coordination, and an absence of accountability—all of which led to numerous energy failures. The Anastasiades–DISY government left behind serious dead ends, while the current government is unable to provide solutions.

The crucial question, however, is who will provide a solution today and with what plan.

AKEL proposes a comprehensive plan for a secure and affordable electricity system, recommending:

1. The establishment of an Emergency Council on Energy Security and Sufficiency with a clear mandate, binding timelines, and a comprehensive sufficiency plan.
2. Immediate government intervention to ensure the necessary generation capacity.
3. Acceleration of the upgrade and reinforcement of the Dekeleia facility, strengthening of storage capacity and grid flexibility, as well as the removal of technical constraints.
4. A realistic and costed roadmap for Vasilikos and the introduction of natural gas for electricity generation, as well as reinstating the option to utilize Cypriot gas reserves to meet the country’s domestic needs.
5. Strengthening energy conservation policies, energy upgrades, and better demand management.
6. Immediate measures to address high energy costs, such as a permanent reduction of the VAT on electricity to 5%, expanding social rate programs, using revenue from pollution taxes for targeted subsidies, rapidly increasing the share of renewable energy in the EAC’s generation mix, the expansion and upgrading of plans for photovoltaic systems and energy storage, as well as incentives to enable vulnerable groups and those who face difficulties in installing photovoltaic systems to join energy communities.