Alpha News

Dhekelia New Units Operation Postponed to 2030

Published February 9, 2026, 17:33

The operation of the three new production units in Dhekelia has been postponed to 2030 due to delays from Siemens. The initial agreement for delivery within 2.5 years has been extended to 4 years, due to high international demand, particularly from data centers in the US. EAC is reviewing the agreement, considering the increased cost and delivery time, with the possibility of not proceeding with the purchase of the units. The delay creates a gap in electricity production, as some fuel oil units will be disconnected in 2029, with the hope that natural gas will be available by then. The EAC budget provides for total expenditures of €2.555 billion and revenues of €1.956 billion, with a cash deficit of €349 million. Capital expenditures amount to €456,679 million, increased compared to 2025, for projects and upgrades, including the absorption of more 'green' energy. A provision of €250 million is included for unforeseen expenses, which will be covered by price adjustments or charges. During the budget discussion in the House Finance Committee, questions were raised about the uncertainties and the contingency fund. Explanations were requested for individual expenditure lines and for more accurate forecasting of electricity costs. The cost of pollution and the possibility of reducing costs with the use of natural gas were also discussed. The Minister of Energy was informed about the issue and EAC is planning a meeting with him to discuss the impact of the delay and possible solutions. EAC is considering all options, taking into account Cyprus's needs for reliable and cost-effective electricity production.