Cyprus may face an electricity shortage by 2030

Minister of Energy of the Republic of Cyprus Michalis Damianos said that the country needs to complete the construction of the liquefied natural gas terminal in Vasiliko by 2030. According to him, without switching to natural gas, Cyprus risks facing an electricity shortage.

Under its commitments to the EU, Cyprus must decommission the old power units at the Dhekelia power station by the end of 2029. Three new low-emission generators have already been ordered, but their capacity is not enough to fully replace the existing installations. Launching the gas terminal will make it possible to cover this shortfall.

The minister noted that the use of natural gas will not only improve the reliability of the power system, but will also help reduce the cost of electricity generation. Combined with the development of renewable energy sources, this should have a positive effect on consumer tariffs.

Construction of the terminal in Vasiliko is about halfway complete. After the previous contractor left, the work was suspended. The authorities expect to select a new contractor by the end of 2026 or in early 2027.

At the same time, Cyprus is developing energy storage systems. By 2027, it is planned to install batteries with a total capacity of about 450 MW, but they will not be able to replace the new generation capacity. Therefore, according to the minister, bringing the gas terminal into operation remains a priority task.