CERA and the Ministry of Energy are moving towards activating Article 34 of the Law Regulating the Electricity Market, as concerns intensify over power adequacy after 2029–2030, particularly if the import of natural gas proves unfeasible, according to information cited by *Phileleftheros*.
CERA has already warned the Minister of Energy that, without additional conventional generation capacity, the electricity system’s reliability indicators may exceed acceptable limits. Article 34 serves as a safeguard mechanism for EU member states when the competent regulatory authority identifies a risk of electricity shortages based on available generation capacity and projected demand growth.
Article 34 serves as a safeguard mechanism for EU member states when the competent regulatory authority identifies a risk of electricity shortages.
Activating the procedure could lead to the launch of tenders for the installation of new diesel- or heavy fuel oil-fired generation units. CERA would be required to substantiate the additional capacity needed, the measure’s start date and duration, the investment gap, the cost-recovery method and the network’s technical requirements, in compliance with EU Regulation 2019/943 and competition law.
The location of any new facilities is another critical consideration. The wider Larnaca area and the government-controlled areas of Famagusta are considered the most likely options, as Vasilikos is viewed as problematic due to short-circuit current constraints when concentrated generation capacity exceeds approximately 850 MW.
At the same time, Cyfield Group’s PEC is presenting its power plant under construction at Vasilikos as a possible solution, with approximately 200 MW of available capacity when operating on diesel. However, licensing, technical and ownership issues concerning the cooling-water pumping station remain unresolved, while the cost of any new solution is ultimately expected to be passed on to consumers.
Source: Fileleftheros
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