Cyprus prepares power mechanism to address potential 2030 electricity shortage

The Cyprus Energy Regulatory Authority (RAEK) has initiated the process to activate Article 34 of the Electricity Market Regulation Law. This move aims to implement a power mechanism to address potential long-term electricity shortages.

During a parliamentary committee meeting, RAEK President Polyvios Lemonaris presented a worst-case scenario based on ongoing adequacy studies through 2030. This scenario assumes delays in both the arrival of natural gas and the completion of electrical interconnections. Such delays, combined with the decommissioning of conventional power units due to environmental restrictions, could result in a power deficit of approximately 720 MW by 2030.

The proposed mechanism may utilize various technologies and methods depending on system needs, though its implementation will incur costs passed on to consumers. Lemonaris cited Ireland as a precedent where a similar mechanism was used to manage significant deficits until permanent infrastructure was completed.

Nikos Georgiou, Chairman of the Parliamentary Energy Committee, expressed grave concern, stating that the country is in a critical position regarding energy adequacy. He noted that the mechanism would require European approvals and warned of the significant economic burden on consumers, referencing Ireland's implementation cost of approximately €1.5 billion.