Friends and Representatives from the Media,
Ladies and Gentlemen,
On behalf of the Board of Directors, Management and employees of EAC, I welcome you to today’s meeting and thank you for your presence.
Over the past period, important issues relating to the adequacy of the electricity system, the cost of electricity, the development of Renewable Energy Sources (RES), the resilience of the network, and the modernisation of infrastructure have been raised in public discussion.
We therefore considered it our duty to present our position with composure, clarity and documented facts, so that citizens have before them the real picture, as well as EAC’s responsible planning for the next steps.
Generation Adequacy and Dhekelia Power Station
Electricity generation adequacy is a complex issue influenced by many factors.
Electricity demand is increasing, particularly during periods of extreme temperatures.
At the same time, European Union environmental requirements restrict the operation of certain older generating units that are approaching the end of their technical lifespan.
EAC is responding to this challenge by maintaining and maximising the availability of its existing generation units, while at the same time promoting investments in Renewable Energy Sources and Energy Storage.
Dhekelia Power Station, the oldest power station in Cyprus, is currently undergoing a programme of upgrading and gradual replacement of units.
- Although the cost of installing conventional gas turbine generating units has increased dramatically over the last two to three years, their installation at Dhekelia remains a technical necessity.
The continued operation of Dhekelia Power Station is necessary in order to ensure that Cyprus maintains a second point of uninterrupted electricity generation, strengthens security of supply, and enables greater penetration of Renewable Energy Sources.
- This is a project of strategic importance that serves the public interest and strengthens the security and stability of the country’s electricity system for the benefit of all consumers. For this reason, its financing should be considered within the framework of a broader national energy infrastructure strategy, in a manner that ensures its timely implementation and the rational recovery of the associated costs.
Photovoltaic Parks: Permits and Realities
With regard to EAC’s Renewable Energy projects, it is important to clarify that obtaining a construction licence does not in itself mean that a project can immediately proceed to implementation.
EAC has secured licences from CERA for a number of projects. However, their implementation is affected by the required planning and building permits, as well as by the availability of suitable network access, procedures which in several cases are time-consuming.
- At the same time, delays have occurred that have affected the overall project development schedule, including the period during which progress on the related land acquisition tender was suspended, impacting the timetable for the utilisation of available plots.
- Consequently, apart from the photovoltaic parks that are already in operation, there are currently no other projects for which all required licensing and development stages have been completed to allow immediate commencement of construction. EAC is working intensively and systematically to accelerate the relevant procedures.
- We should also emphasise that EAC cannot proceed with construction works for any project unless it has obtained all required licences and approvals.
Transmission and Distribution Network: Needs, Investments and Next Steps
The country’s electricity network constitutes a natural monopoly and is a critical national infrastructure asset of strategic importance. Under the current legislative and regulatory framework, its expansion, reinforcement and upgrading are carried out by EAC.
Cyprus’ electricity network ranks among the most modern European networks of its category, and access to it is provided on an equal basis to all eligible users.
At the same time, within the framework of the green transition and the achievement of national and European targets, an extensive programme of network upgrading and modernisation is underway, utilising modern technologies and state-of-the-art solutions.
It should also be clarified that the Ten-Year Transmission System Development Programme is prepared by the Cyprus Transmission System Operator (TSO), approved by CERA, and implemented by EAC. Therefore, project priorities and implementation sequencing are not determined by EAC, but form part of the country’s established energy planning framework.
The current programme includes 94 projects with a total budget of approximately €500 million.
The vast majority of delays in the implementation of energy projects are linked to lengthy licensing procedures by the competent authorities. This challenge is not unique to Cyprus but is also faced by many other European countries.
If there is one area where meaningful institutional improvement is required, it is the overall approach to project licensing. It is important that grid connection projects and Renewable Energy projects are examined in parallel by the competent authorities, so as to avoid overlaps, delays and administrative obstacles.
At the same time, it must be emphasised that network investments, although absolutely necessary, affect the overall cost of energy and therefore must be planned with rationality, proper documentation and a strong sense of responsibility towards consumers.
For precisely this reason, EAC has included Transmission Substation upgrades worth approximately €53 million, as well as Distribution projects worth approximately €49 million, in the National Cohesion Policy Programme “THALIA 2021–2027”, so that the cost of these necessary investments will not be passed on to consumers.
Today, approximately 1,200 MW of Renewable Energy Sources are already connected to the country’s electricity system, highlighting both the progress that has been achieved and the increasing pressure placed on system infrastructure.
In an effort to accelerate new connections, the Distribution System Operator (DSO) is promoting special connection arrangements for RES and energy storage projects in congested sections of the network, as a transitional solution until the completion of the necessary — but time-consuming — network reinforcement projects.
Meter Data Management System (MDMS)
With regard to metering data, the MDMS and smart meters, the following should be noted:
- The MDMS has been operating correctly and effectively since 2023.
- More than 270,000 smart meters have been installed to date.
- The integration between the meter management software (Head End System) and the MDMS has already been completed, allowing half-hourly consumption data to be recorded from all installed smart meters.
- The smart meter installation programme is expected to be completed in accordance with the CERA timetable (Regulatory Decision 02/2018), which provides for the installation of 400,000 meters by December 2026. EAC has decided to expand the programme, targeting the installation of a total of 500,000 meters by the end of 2027.
Electricity Market Association (ΣΑΗ)
Within this environment, it is evident that organisations such as the Electricity Market Association (EMA), which today exclusively represents private business interests in the Renewable Energy sector, continue to systematically raise demands for further unbundling of the Transmission Network.
However, it is essential that certain facts, which are often omitted from public discussion, are also placed on record.
EAC was a founding member of the Electricity Market Association. Subsequently, the other members proceeded to amend the Association’s Articles of Association, resulting in EAC being excluded from participation.
Thereafter, another company joined in EAC’s place, and its Chairman subsequently assumed the presidency of the Association. This company is neither an electricity producer nor a supplier; it merely holds a construction licence issued by CERA.
This development raises reasonable questions regarding the representativeness, institutional balance, and overall credibility of the positions publicly expressed by the Association on matters relating to the structure and operation of the electricity market.
Energy Storage, RES Curtailments and the Competitive Electricity Market
Electricity demand is inherently characterised by significant seasonal variations throughout the year, as well as fluctuations during the course of each day.
For this reason, during periods of low demand, particularly in autumn and spring, it becomes necessary during certain hours to curtail the absorption of energy from Renewable Energy Sources in order to safeguard the security and stability of the electricity system.
This phenomenon is also observed in other European electricity systems, including interconnected systems. In Cyprus, however, it is more pronounced due to the small size and isolated nature of our electricity system.
It is understood that curtailments of green energy are largely attributable to the lack of energy storage infrastructure.
The isolated nature of Cyprus’ electricity system requires the deployment of energy storage. The Cyprus Transmission System Operator and EAC, in a joint effort to address the issue, initiated the necessary procedures to enable the TSO to operate centralised storage systems until the market reaches a more mature stage.
This project will contribute to increased penetration of Renewable Energy Sources, reduced curtailments, and enhanced system stability and adequacy.
Nevertheless, this particular initiative has been challenged, resulting in the loss of valuable time.
At the same time, EAC is proceeding with the installation of an 80MW/160MWh storage system at Dhekelia Power Station. It is also progressing with the installation of a 100MW/200MWh storage system at Moni Power Station, while evaluating additional storage projects at Vasiliko Power Station and other locations.
Competitive Electricity Market
The Competitive Electricity Market is currently in the early stages of operation.
As occurred in most countries that introduced competitive electricity markets, certain issues emerged during the initial implementation period, both regarding the accuracy and reliability of metering data and the ability to comply with the prescribed timelines for submitting specific files to the Market Operator.
What I can assure you is that we remain in continuous communication with both the Market Operator and market participants to resolve any issues that arise.
We remain fully committed to addressing any challenges that may emerge, so that the MDMS software operates smoothly and provides reliable metering data for the proper functioning of the Competitive Electricity Market.
Claims Regarding EAC Supply’s Control of RES Generation
In recent months, public claims have been made regarding the share of electricity generation from Renewable Energy Sources, EAC Supply, and EAC’s overall position within the electricity market.
However, we must stress that such references should be based on clear definitions and sound methodology. Otherwise, dissimilar figures become confused, leading to inaccurate or misleading conclusions.
Based on official market data for November 2025, EAC’s market share in electricity supply stood at 84.76%, while the corresponding share of all other suppliers combined amounted to 15.24%.
We also frequently hear the claim that EAC Supply procures 416MW from Renewable Energy Sources.
- These claims are not accurate.
- Excluding Net Metering and Net Billing systems, and excluding the 20MW generated by our own photovoltaic parks, EAC Supply represents 233.5MW of installed RES capacity in the Electricity Market on behalf of the RES and Energy Saving Fund.
- The figures are clear:
o 76MW from photovoltaic systems at €0.11/kWh
o 157.5MW from wind farms at €0.11/kWh
The €0.11/kWh tariff has been determined by CERA and not by EAC. However, any benefit arising from these arrangements is reflected in EAC’s tariffs.
- By contrast, the 447MW operating under Net Metering (as of March 2026) and the 119MW operating under Net Billing represent a direct cost to EAC.
- This is because these systems export energy during periods when electricity prices are zero or very low, while their consumption is offset during evening hours when costs rise sharply to between €180 and €250 per MWh.
- At the same time, competing suppliers control approximately 350MW of photovoltaic capacity and hold licences for additional capacity of a similar scale. Based on the Levelised Cost of Electricity (LCOE), their production costs are estimated at only €0.06 to €0.08 per kWh. However, the benefit ultimately passed on to consumers remains limited, as their prices are only 8% to 10% lower than those of EAC.
EAC continues to advocate strongly for the ability to enter into Power Purchase Agreements (PPAs) with private RES producers on competitive terms, so that affordable green energy can be provided to consumers.
CYTA
With regard to the potential entry of CYTA into the energy sector, I wish to be clear: the issue is not whether another organisation can participate in the market.
The real question is in what form, under what conditions, and with what consequences for the public interest such participation would take place.
EAC believes that, in a small and sensitive market such as Cyprus, such a development must be examined with great care, as it could create imbalances, distort competition, and ultimately exert upward pressure on electricity prices.
The Cyprus electricity market is not an ordinary commercial market. It is an isolated system with significant technical and strategic requirements.
If the objective is to provide better services and greater choice to consumers, this can also be achieved through cooperation and partnerships.
However, if we are discussing a complete change of role and the creation of a second public energy pillar, then we are dealing with a matter of public policy and institutional design that requires serious evaluation, consultation, and a clear political decision.
That is the fundamental question that must be answered.
In a small state, strategic sectors should be approached holistically and through integrated planning.
Unit 6 of Vasiliko Power Station
Unit 6 at Vasiliko Power Station constitutes one of the most important energy infrastructure projects ever implemented in Cyprus.
The project concerns the construction of a modern Combined Cycle Power Plant with a capacity of approximately 160MW, designed to operate primarily on natural gas.
The commissioning of Unit 6 will significantly improve the efficiency of the electricity generation system, reduce fuel consumption per unit of electricity produced, and substantially lower greenhouse gas emissions.
At the same time, it will strengthen the adequacy and reliability of the electricity system, particularly during periods of peak demand and extreme weather conditions.
The project is progressing according to the revised implementation schedule and is expected to make a decisive contribution to the country’s energy transition.
Unit 6 is not simply another generating unit. It is a strategic investment that supports Cyprus’ transition towards a cleaner, more efficient and more sustainable energy model.
Desalination Plants
The issue of water security has become increasingly important in recent years due to climate change and prolonged periods of drought.
For this reason, desalination plants have become a critical component of Cyprus’ water supply infrastructure.
EAC plays an important role in supporting the operation of desalination plants by ensuring the uninterrupted supply of electricity required for their operation.
At the same time, EAC is examining ways to further improve the energy efficiency of desalination facilities through the integration of Renewable Energy Sources and innovative technological solutions.
The interdependence between energy and water is becoming increasingly evident. For this reason, integrated planning and close cooperation between all competent authorities are essential.
Closing Remarks
Ladies and Gentlemen,
Cyprus is currently at a critical crossroads in its energy transition.
The challenges before us are significant and complex. However, they also create opportunities for transformation, innovation and sustainable development.
EAC is fully aware of its responsibilities.
Our mission remains clear:
- To ensure security of supply.
- To maintain the reliability and resilience of the electricity system.
- To support the green transition.
- To contribute to keeping electricity affordable for households and businesses.
- To continue modernising our infrastructure and services.
We do not claim that everything is perfect.
We do, however, believe that public dialogue should be based on facts, technical evidence and objective data.
This is precisely the purpose of today’s meeting.
To provide answers.
To clarify misconceptions.
To present the facts.
And to engage in an open and constructive dialogue with society.
I would like to thank all EAC employees who work tirelessly, often under difficult conditions, to ensure the continuous and safe supply of electricity throughout Cyprus.
I also wish to thank our institutional partners, the competent authorities, the Regulatory Authority, the Transmission System Operator, local authorities, and all stakeholders with whom we collaborate in pursuit of our common goals.
Finally, I would like to thank you for your presence and attention.
We remain at your disposal for any questions, comments or observations.
Thank you.
