The fragile state of Cyprus’s electricity supply is set to worsen in the coming years if the long-delayed arrival of natural gas continues to stall.
The government has consistently failed to address even the most basic and urgent issues, such as electricity and water provision. Infrastructure exists, but what is missing is a coherent strategy for implementation.
At present, 420 MW of conventional power units have been installed but remain idle, solely because they are designed to operate on natural gas, which has yet to arrive. Why has this still not happened?
Idle Power Plants Waiting for Natural Gas
The unused units amounting to 420 MW are:
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The 6th combined cycle unit of the Electricity Authority of Cyprus (EAC), installed at the Vasilikos power station. With a capacity of 160 MW, it cost around €160 million and has long been inactive.
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The independent power station of PEC, also at an advanced stage of construction in Vasilikos. Its 260 MW combined cycle unit is ready but cannot function until natural gas is supplied.
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The planned Paramount Energy power station, also in Vasilikos. It will use internal combustion engines with a capacity of 100 MW and is designed to run exclusively on natural gas.
If these plants were operating, Cyprus would not be facing shortages or blackouts. There would be no need for announcements urging households to save electricity during peak hours when renewable production falls short, nor for rolling power cuts imposed by the Transmission System Operator.
The adequacy problem was first highlighted as far back as 2021, yet no action was taken. The situation has now deteriorated to the point where rotating power cuts are enforced nationwide, simply because there is not enough conventional power to meet demand.
Looming Threat: Post-2029
The crisis is expected to intensify further with time, especially after 2029, when six ageing steam units at the Dhekelia power station, with a total capacity of 360 MW, will be forced out of service. With demand forecast to grow, the gap in supply will only widen if natural gas remains absent.
Decision-makers and regulators are now left questioning what went wrong and how Cyprus has reached this critical point.
The Price Paid by Consumers
The result is a staggering burden on Cypriot consumers, who are paying an additional €1 million per day because the country continues to rely on heavy fuel oil and diesel. This dependency not only drives up electricity costs but keeps Cyprus among the most expensive energy markets in Europe.