The Cyprus Electricity Authority (EAC) is set to evaluate three bids for new diesel generators at its Dhekelia power plant, with proposals ranging from 107 to 148 million euros, as the utility races to maintain grid stability before a 2029 deadline to decommission its aging units.
The decision follows a high-level meeting at the Energy Ministry on Thursday, led by Minister George Papanastasiou, where officials agreed to expedite the procurement process for two new generators with a combined capacity of 80 megawatts.
Greek company TERNA submitted two proposals – one featuring Siemens equipment for approximately 107 million euros and another with General Electric units for 148 million euros.
AVAX, another Greek firm, offered Siemens machinery for about 137 million euros.
Industry sources told philenews that EAC officials have expressed concerns about technical specifications of the Siemens units, which require maintenance shutdowns every two weeks, potentially affecting operational efficiency.
The General Electric proposal, while more expensive, offers more flexible operation without bi-weekly maintenance requirements – a crucial factor given Cyprus’s increasing reliance on weather-dependent solar power.
The utility aims to have the new units operational by summer 2027, although this timeline will not address potential power shortages in 2025 and 2026, particularly during peak summer months.
The project forms part of Cyprus’s broader energy transition, which includes plans to introduce natural gas at the Vasiliko power plant within two years, enabling the operation of a new 160-megawatt EAC unit and a private 260-megawatt facility by PEC (Cyfield).
Grid operators maintain that the Dhekelia upgrades remain essential for system balance, particularly as the plant’s six aging steam turbines must cease operations by late 2029 under European Commission agreements.
A final decision on the bids is expected by early March to avoid delays that could necessitate a new tender process.
