Newsroom
Electricity prices in Cyprus are expected to remain elevated for the next two years, according to Giorgos Petrou, chairman of the Electricity Authority of Cyprus (EAC). Petrou made the remarks during a House finance committee meeting on the EAC's 2025 budget.
Petrou cited the continued absence of natural gas, insufficient renewable energy storage capacity, and the need for further renewable energy integration as key factors contributing to the price outlook. He noted that without these developments, consumer electricity prices for households and businesses are unlikely to decrease. His comments echoed similar statements made by the energy minister earlier this year.
EAC is exploring strategies to mitigate fuel cost fluctuations, including working with expert advisors to develop a hedging strategy to address euro-dollar exchange rate risks.
Regarding natural gas, Petrou stated that infrastructure improvements are necessary before it can be used for electricity generation, with an estimated completion timeline of approximately one year. The government has previously indicated that the Vasiliko liquefied natural gas (LNG) terminal, which will convert imported LNG into gaseous form for use at the nearby Vasiliko power station, is expected to be completed by the end of 2025. The re-gasification process will take place on board the "Prometheas" vessel, which is currently undergoing repairs and upgrades in Malaysia. Petrou confirmed that necessary equipment has been purchased for the vessel.
The EAC has secured permits for new solar parks but is encountering difficulties in acquiring suitable land. Tenders for renewable energy storage solutions are expected to be released soon.
The EAC will conduct its own study on the financial impact of the proposed Great Sea Interconnector, a subsea electricity cable linking Cyprus and Crete, with a budgeted amount of €350,000.
The EAC's 2025 budget projects €564 million in fuel purchases, €1.9 billion in expenditures, and €1.4 billion in revenues, resulting in a €245 million cash shortfall to be addressed through borrowing and equity. Payroll expenditures are estimated at €162 million, operating expenses at €108 million, and capital expenditures at €357 million. The EAC's workforce is projected to decrease by two employees in 2025.
Capital expenditures include investments in new turbines and storage at the Dhekelia power plant, low-emission technology investments, and upgrades to the Vasiliko power station.
Revenue projections include €1.2 billion from electricity sales, €210 million from market operator charges, grid usage fees, and auxiliary service fees, and €24 million from desalinated water sales.
