Unions at the Cyprus Electricity Authority (EAC) on Tuesday called for the immediate installation of two new power generation units at Dhekelia power station in addition to storage facilities to restore the system’s reliability, supply security and maintain local production diversity.

They stressed the need for new infrastructure to eventually upgrade these units to a combined-cycle system to improve operational efficiency.

The unions said their statement was “a response to the energy policies of the ministry”, which they describe as “inconsistent and contradictory” and which they say have affected electricity costs.

The ministry initially tasked the EAC with bringing natural gas to Cyprus, yet after significant delay, it created the Natural Gas Public Company (Defa) to take over the responsibility, leading to further confusion on whether natural gas would be delivered via pipeline or in liquefied form.

The unions said the government designated natural gas as an “emerging market” due to the country’s relatively low demand compared to other EU states, aiming to consolidate all gas supplies to reduce import costs. This framework was also intended to support new electricity producers with smaller gas needs.

However, the unions criticised a recent proposal by the energy ministry to abolish the emerging gas market, arguing that it shows a lack of coherence in energy planning, which has shifted frequently over the past two decades with negative consequences for the sector.

The unions claimed that the ministry’s approach “ignores the critical issue of unfinished infrastructure for natural gas and instead focuses on eliminating the emerging market”.

They also said the ministry’s demand for the EAC’s sixth unit at Vasilikos to operate solely on natural gas, with no temporary alternative fuel, has rendered it inactive, impacting the nation’s energy security as demand peaked in 2024.

Highlighting ongoing risks, the unions warned of potential blackouts due to supply limitations and criticised both the ministry and the Cyprus Energy Regulatory Authority (Cera) for inadequate long-term planning.

They also claimed the ministry has ignored its obligations to implement approved expansion and modernisation plans for Dhekelia, which are necessary to maintain adequate and distributed energy production across Cyprus.

In response to remarks made by the Electricity Market Association chairman on natural gas potentially lowering electricity prices, the unions expressed scepticism.