Energy Minister Michalis Damianos estimates that natural gas will be available in Cyprus by the end of 2029, attributing the substantial reduction in electricity prices to the replacement of fuel oil with natural gas. Speaking on the Alpha News program, he outlined the next steps regarding the terminal at Vasilikos, the “Prometheus” project, and the expansion of energy storage.
As he noted, eight companies or consortia have expressed interest in completing the Vasiliko terminal, with ETYFA currently evaluating their technical and financial capabilities. The goal is to complete the process by early January 2027 and to sign a contract with a new contractor before the summer of that same year. According to the Ministry’s estimates, construction work will take approximately one and a half years from the time it resumes. “We consider it unlikely that this will happen before the end of 2028,” he said regarding the arrival of natural gas, expressing the view that this will be achieved before 2030. He acknowledged, however, that potential appeals or other procedural obstacles could cause further delays.
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Regarding the ship “Prometheus,” Mr. Damianos explained that a potential temporary lease is not a simple solution, as it would require technical modifications and testing both before and after its return. As he noted, the ship must be in Cyprus by 2028 in order to be connected to the onshore infrastructure and the Vasilikos pier and for the necessary tests to be conducted. “We don’t have as much time as we might think we do,” he said, pointing out that a potential lease would be of limited duration and would entail risks.
When asked when electricity bills would go down, the Minister emphasized that a substantial reduction will come from using natural gas instead of fuel oil for electricity generation. Until then, energy storage and greater penetration of renewable energy sources can help keep costs in check, though they will not result in correspondingly large reductions. “The reductions achieved through storage won’t be significant, because we’ll still be burning a lot of fuel oil,” he clarified.
According to the plan, the System Operator is expected to install 120 MW of storage capacity by the summer of 2027, while an additional 80 MW is projected from the EAC and private-sector projects within the same year. The overall goal is to have approximately 400 MW of storage capacity in the power system by 2029, thereby limiting curtailments of photovoltaic generation. At the same time, Mr. Damianos mentioned the possibility of a tax credit of €1,000 per year per taxpayer for five years for the installation of photovoltaic systems or batteries, as well as a new plan for vulnerable consumers set to take effect in early 2027. Regarding the “I Save – Upgrade” program, he noted that applications totaling €33.5 million in funding have been received, leaving open the possibility of securing additional resources.
Finally, referring to the Cyprus–Greece electricity interconnection via the Great Sea Interconnector (GSI), he stated that a NAVTEX is expected to be issued, while the European Investment Bank’s study is expected before the end of 2026. Regarding the project’s completion, he referred to the ADMIE timeline, which sets the electricity interconnection for the end of 2031, provided that its implementation proceeds as planned.
