Dhekelia’s new turbines running late, may not arrive till 2030

The new turbines ordered for the power plant at Dhekelia may not arrive until 2030, officials of the Electricity Authority of Cyprus (EAC) told MPs on Monday.

EAC board chairman Giorgos Petrou said that, after a tender, they awarded a contract worth €140 million for the three turbines.

Initially the delivery timeline was two-and-a-half years from the present day – placing it in mid-2028.

But two weeks ago, the manufacturer (Siemens) notified the EAC it would take four years to deliver.

“We were going to give [the contractor] incentives for every month sooner than the two-and-a-half years…now they want four years,” Petrou said.

He attributed the delay to international demand for turbines, especially the demand for power by data centres in the United States.

The EAC boss said they’ve discussed the matter with the energy minister. He said they’d assess the manufacturer’s demand, not ruling out cancelling the purchase of the Siemens turbines.

Petrou explained that some of the existing turbines at Dhekelia – running on mazut – will need to be decommissioned by 2029.

Unless they get replaced by then, there could be a deficit in power production. But he expressed the hope that natural gas would start being used for energy generation by 2029.

The new machines would be used to boost capacity at the outdated Dhekelia plant, complementing the current turbines that are approximately 40 years old.

The European Commission had initially demanded that Cyprus shutter the power station given that it does not meet the EU’s emissions targets. But the Cyprus government promised to modernise it to mitigate emissions.

It’s understood the new turbines – each with 27 megawatts capacity – would run on diesel. They are not configured to also run on natural gas.

Contacted by the Cyprus Mail later, Petrou said the EAC had received two bids in total for the turbines tender. One was from Terna, the other from the Avax Group. In both cases, the manufacturer was Siemens. The contract was awarded to Terna.

The matter came up at the House finance committee where MPs were reviewing the EAC’s budget for fiscal year 2026.

The EAC’s balance sheet consists of €2.55 billion expenditures, and projected revenues of €1.95 billion.

Capital expenditure comes to €456 million.

MPs flagged an item in the budget – some €250 million for ‘unforeseen expenditures’. Among other things, it covers contingencies such as major fluctuations in fuel prices.

Taking questions, EAC officials said this spending item serves as a ‘cushion’.

Wary parliamentarians pressed on, wanting to know if the EAC can furnish more precise data on its anticipated expenditures which, in turn, would impact the price charged to consumers.

EAC general manager Adonis Yiasemidis told MPs that currently Cyprus ranks as the tenth most expensive country in the EU in terms of energy. When taxes are factored in, Cyprus becomes the eighth most expensive country.

Asked if electricity supply would be sufficient this coming summer, the EAC’s Petrou demurred. His response was that ‘unknown variables’ – like unexpected serious malfunctions to old equipment – could pose a problem.