A re-tender for new power generators at the Electricity Authority of Cyprus (EAC) plant in Dhekelia is reportedly turning into a significant “fiasco,” with new information confirming initial concerns. The process is now plagued by much higher prices than in the previous tender and, more critically, the inability of the two interested contractors to guarantee delivery before summer 2028.
The two contractors, TERNA and AVAX, cannot ensure timely delivery even under the most optimistic scenarios, assuming contracts are signed immediately. This means a process that began roughly a year ago, aiming for the installation of two new generators by summer 2026 to address anticipated serious electricity shortages, now cannot guarantee their operational readiness even by summer 2028.
Given these developments, the possibility of this tender being cancelled cannot be ruled out. While there are reports that EAC has an alternative proposal for smaller internal combustion units, which might be installed sooner and at a lower cost, these are not considered an ideal long-term solution for the Dhekelia plant.
New tender considered, focus shifts to battery storage
Philenews has learned that a broad meeting was held yesterday, chaired by Energy Minister George Papanastasiou, involving officials from the Ministry of Energy and administrative and directorial staff from EAC. Discussions included the prospect of launching a new tender to boost electricity production from the Dhekelia plant by 80-100 megawatts. This new tender would avoid specifying generator technology and restrictive technical terms, hoping to attract more companies with flexible, cheaper, and faster implementable solutions.
However, a new tender would inevitably require significant time, likely failing to meet the targets for summer 2026 or even summer 2027 or 2028. It could, however, lead to better, more flexible, and more affordable equipment in the long run.
In the interim, the Ministry of Energy and EAC are now placing their hopes on the energy storage systems (batteries) that EAC is advancing for the Dhekelia plant. The evaluation process for these offers is at an advanced stage, and the Electricity Authority hopes that the batteries can become operational by next summer (2026). If successful, the Transmission System Operator (TSO) would be bolstered with 160 megawatt-hours, capable of covering urgent system security needs and peak demand during summer afternoons (6 PM to 10 PM).
Efforts on the Dhekelia storage project will intensify in the coming days to expedite the tender award and commence implementation. This project is now seen as an alternative to the increasingly elusive goal for new generators. Simultaneously, the TSO is urged to accelerate procedures for selecting and installing three network-wide storage systems (for a total of 400 megawatt-hours), aiming for their availability by June 2026 to ensure system stability and potentially fill some electricity supply gaps. While CERA (Cyprus Energy Regulatory Authority) set June 2026 as a target, the likelihood of meeting this deadline remains low.
