*Press Release from the Electricity Market Association
The fact that electricity demand can be met—provided there are no failures at power plants—demonstrates just how fragile our country’s electricity system is. However, ensuring sufficient supply cannot remain confined to theoretical approaches. On the contrary, it requires political will, clear timelines, accelerated permitting processes, and close cooperation between the public and private sectors, guided by the long-term interests of consumers.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The Reality in Cyprus
The data clearly show that the adequacy of Cyprus’s electricity system is at critical levels. The generally increasing demand for electricity, the aging of existing power generation units, the necessary operation of desalination plants, and delays in the implementation of major energy projects have led us to the current situation.
However, we did not reach this critical point overnight. This situation developed gradually because the necessary decisions were not made, and solutions that could have strengthened the system’s resilience were not implemented with the required speed.
As a result, our country’s power grid is operating with limited safety margins. What is most concerning is that the solutions are right in front of us, but they are not being implemented as quickly as they should be, given the critical nature of the situation. At any moment, a serious technical failure could place an even greater strain on the system and lead to widespread power outages. The rolling blackouts implemented on July 22 should not be viewed as the norm. They are a measure to protect the system and prevent the serious possibility of a widespread blackout.
The solutions are right in front of us
A country’s energy security cannot be based on merely avoiding the worst-case scenario every time the system reaches its limits. It requires prevention, reserves, investments, and timely decisions.
At a time when energy sufficiency is “walking a tightrope,” a private investment project—one that is capable of immediately adding new generating capacity to the grid—remains offline, as the necessary modifications have already been made to allow it to operate under current conditions until natural gas becomes available. The launch of the first private power plant in our country is not just about increasing the available energy supply. It is directly linked to reducing dependence on existing generation infrastructure, the creation of alternative options for the market and consumers, and, by extension, a more resilient power system.
Furthermore, natural gas is an important tool for strengthening security of supply, reducing dependence on expensive conventional fuels, and creating a more flexible power generation system. However, the timeline for its arrival has been pushed back repeatedly, while the liquefied natural gas import terminal at Vasilikos has turned into an extremely troubled and costly project. A project on which the operation of Unit 6 of the EAC at the Vasilikos Power Plant depends.
The “Key” to Storage
Cyprus has significant installed photovoltaic capacity at its disposal, which can be utilized much more effectively through storage. Despite strong investor interest and the maturity of the market, significant applications for storage projects remain pending. Of particular concern is the stance of the Distribution System Operator (DSO), which treats the addition of storage systems to existing solar farms as if they were new connection applications, even though these projects are already licensed, connected, and operational.
However, the addition of storage should be treated as the most immediate solution capable of reducing cuts to green energy, and not as a process bogged down either by bureaucracy or by the desire of some to maintain dependence on the EAC, of which the DSD is an integral part.
Every month of delay comes at a real cost. It discourages investments worth millions, limits the ability to harness more and cheaper energy from renewable sources, perpetuates market distortions, and results in the loss of green energy that could be stored and used when the grid needs it. Instead, the system continues to rely on more expensive conventional generation, with additional costs for fuel and emissions allowances, which are ultimately passed on to consumers.
The issue at hand concerns not only the security of the energy system but also the competitiveness of the economy and, by extension, Cypriot society as a whole. The fewer generation units and alternative solutions there are, the greater the system’s dependence on existing generation infrastructure remains. Not only does this fail to help create a truly competitive electricity market, but it also creates conditions that further strengthen the EAC’s already dominant position. At a time when the electricity system is under pressure, we cannot afford to keep investments tied up that could provide immediate solutions.
A Modern Electricity Market
It is undeniable that Cyprus now faces a reality that allows for no further delays. To restore self-sufficiency, we need the necessary political will to move these projects forward, a stable and predictable regulatory environment, and faster licensing procedures.
It is imperative that our country make use of the tools already at its disposal. Time is running out. The decisions made from now on will determine whether Cyprus will finally invest in a secure, adequate, and competitive electricity system for both current and future generations.
