Concerns over electricity supply adequacy in Cyprus beyond 2030

Cyprus faces potential electricity supply shortages by 2030 due to continued delays in the arrival of natural gas and the scheduled retirement of power units at Dhekelia and Vasiliko, totaling approximately 750 MW. The Cyprus Energy Regulatory Authority (CERA) has formally notified Energy Minister Michalis Damianos of the risk, urging the activation of the 'capacity mechanism' under Article 34 of the electricity law to procure additional conventional, oil-fired generation capacity. The Ministry of Energy, represented by Director-General Kyriakos Iordanou, has requested further data and consultations to expedite this process. While some experts argue that investing in new oil-fired plants is not the most rational approach, officials maintain that the mechanism serves as a necessary safety valve. Separately, the Transmission System Operator (TSO) confirmed that the grid currently has sufficient capacity for summer demand, which reached 1,156 MW on Monday. However, the TSO warned that potential breakdowns in power stations could lead to rolling blackouts in a worst-case scenario. The long-term adequacy of the system remains contingent on the transition to natural gas or the rapid installation of new generation units.