Cyprus addresses energy sufficiency and potential infrastructure upgrades

Energy Minister Michalis Damianos announced plans to install hundreds of megawatts in energy storage by the end of 2027 to boost renewable energy integration. The government is currently reviewing the activation of Article 34 of the electricity law, which would allow for the immediate installation of conventional power units. This follows a formal warning from the Cyprus Energy Regulatory Authority (CERA) regarding potential electricity shortfalls by 2030 if natural gas is not available. The Transmission System Operator (TSOC) has confirmed that electricity supply is sufficient for the current summer season, despite projected peak demand between 1,260 and 1,300 megawatts. Concerns persist due to the planned decommissioning of approximately 750 megawatts of capacity at the Dhekelia and Vasiliko power stations by 2029. The Ministry of Energy has requested further data and consultations with CERA to evaluate the necessity of the capacity mechanism. While the government considers long-term solutions, experts continue to debate whether to invest in new oil-fired units or explore alternative energy strategies.