Cyprus urged to act on stalled energy projects

The Electricity Market Association (EMA) on Wednesday expressed concern over two critical energy projects that directly affect Cyprus’ energy future.

These include the Vasilikos liquefied natural gas (LNG) terminal and the Cyprus-Greece electricity interconnection (GSI).

In a statement following a House Energy Committee session on Tuesday, the Electricity Market Association (EMA) issued a call to action.

The session was attended by Energy Minister George Papanastasiou, officials from the Cyprus Energy Regulatory Authority (CERA), the Natural Gas Public Company (Defa), the Natural Gas Infrastructure Company (Etyfa), and other energy stakeholders.

The EMA urged the relevant authorities to show “the necessary institutional seriousness and sense of responsibility at this crucial phase of Cyprus’ energy trajectory, so we can collectively and properly address the challenges ahead of us.”

The association reaffirmed its longstanding objective of “shaping a long-term strategic energy plan to the benefit of all citizens of the Republic of Cyprus and reducing the cost of electricity”.

It further stated that “the ten-month timeline given to the project manager to assess the works needed at the Vasilikos terminal and to prepare the relevant documentation is unjustifiably time-consuming.”

“It is essential for all relevant authorities to understand that the arrival of natural gas is the most critical step towards reducing electricity costs in our country, where consumers are currently paying the second most expensive electricity in Europe,” it added.

Moreover, the EMA expressed strong concern over the fact that “negotiations with subcontractors for the continuation and completion of the jetty are still ongoing, despite earlier announcements that the process would conclude immediately after the termination of the contract”.

It also said that it finds “the inaction observed in the procedures relating to network and connection of production units to Etyfa’s infrastructure” troubling.

“For some time now, Defa has been in possession of private producers’ intention to carry out the required connections at their own expense,” it added.

With regard to the Cyprus-Greece electricity interconnection, the EMA said that the project “has effectively been suspended, with well-known backtracking on the geopolitical issue”.

“Despite the undeniable fact that the project is at a complete standstill, Admie, citing the continued construction of the cable by Nexans, is demanding payment of €125 million from the Republic of Cyprus,” the EMA said.

It called on CERA “to analyse the facts and protect the Cypriot taxpayer, who will be asked to bear the related cost from the emissions fund”.

The EMA also said that the ultimatum sent by Nexans one year ago, threatening to suspend cable works if the full notice to proceed was not issued, “has proven to be a communication tactic and a pressure lever”.

It added that “about a year later, the full notice to proceed has still not been granted, despite Cyprus agreeing to Admie’s requests and, according to yesterday’s parliamentary session, the cable is proceeding normally with its production”.