It’s Christmas today, not New Year’s. And this column shouldn’t be discussing the significant energy developments expected in 2025, despite that being its weakness. Forgive it – it couldn’t find another topic to fill this space!
As Cypriot citizens, we shouldn’t expect natural gas to finally be introduced for power generation in 2025. It won’t happen. We won’t make it in time. We’ll see what we can do for 2026.
We should pray that solutions are found in the new year to prevent electricity supply problems. The risk constantly lurks. Some technicians at the Electricity Authority (EAC), whom this column trusts, warn that the possibility of experiencing blackouts during periods of extreme demand or production isn’t science fiction.
When the system gets rattled. Energy is a complex matter – the whole framework: production, supply, distribution, transmission, voltage, frequency, stability, surge waves, reactive power, connection with the occupied territories, etc. It’s only for those who’ve studied and worked with it. Not for everyone.
If renewable energy producers hope that 2025 will bring an end to green energy curtailments by the Transmission System Operator, they’ll be disappointed.
And we’ll be disappointed with them, because we don’t want green energy to go unused. We’d like it to be cheap as well as green, but fine – even though it’s expensive, we don’t want to waste it and burn oil and pay for emissions instead.
Without installing batteries in renewable energy parks – but primarily in the state network – neither will curtailments decrease, nor will system security and stability be ‘locked in’.
Those fighting the Government’s intention to allow – having received EU approval – the Transmission System Operator and EAC to proceed with installing and managing energy storage facilities should realise this. These facilities would balance the grid when required and reduce curtailments.
Beyond that, let our good investors dig into their own pockets to build their own storage facilities. For commercial use. It’s in their interest.
Should we pay for everything? Besides, a state subsidy scheme was approved for them, though this column believes it shouldn’t have been.
2025, however, might bring us the competitive electricity market. The one for which we’ve endured the transitional electricity regulation for 7 years, which proved to be a terribly distorted affair, resulting in participants making enormous excess profits during the energy crisis and continuing to make serious profits by selling electricity only to major consumers – you know who.
The rest of us – the majority – are overcharged to keep EAC’s generators running whenever the sun smiles or cries and whenever the wind blows or dies down. And we pay for emissions too because they’ve trapped us with oil and expensive renewables. Even though they knew EU emissions discounts would end from 2020.
The question is whether the competitive market, albeit delayed and after the transitional regulation period – perhaps in the second half of 2025 – will open the door to cheaper electricity.
This column sees it as unlikely. At least not for everyone. Not for household consumers. Technical experts with knowledge and experience believe the same. Even in the Ministry of Energy.
However, it’s not certain that the competitive market will actually operate, even without reducing prices. The third trial operation of the competitive market by the Operator will begin in January. The previous two failed. The third might fail too. Especially if market players don’t cooperate honestly.
We’ll know within the first quarter of 2025. The model we decided to implement is the one used by most EU countries. With natural gas, with a wide range of renewables, with many interconnections and large markets.
And many of them want to change it. Because it persists in giving bonuses – big money – to renewable energy producers, as if they’re producing with coal and oil. And it burdens consumers with unthinkable costs. The smaller ones preferentially.
Merry Christmas and good health, did we say?
