Nicosia: Minister of Energy, Commerce and Industry George Papanastasiou, said on Thursday that the government’s goal is energy adequacy and affordable prices of electricity for the consumers, adding that the Vasilikos natural gas Terminal should be completed as soon as possible and operate safely for many years to come.
According to Cyprus News Agency, the Minister, speaking at the Cyprus Forum in Nicosia, emphasized the government’s commitment to finishing the Terminal. He noted that the Natural Gas Infrastructure Company (ETYFA), which owns the project, has appointed a French energy firm to advise on its completion. A critical aspect of this advisory role will be conducting a gap analysis to compare the project’s design with its construction and the materials prepared for installation. If significant discrepancies are found, the project may need redesigning to ensure timely completion and safe operation.
The project comprises three primary components: the vessel, the floating regasification unit, the pier, and the on-land site. Papanastasiou explained that the nearly complete vessel, which has cost approximately 180 million euros, offers promising prospects for early natural gas availability. However, the pier and land components are only 45 to 50% complete, with public sector procedures contributing to delays. He mentioned the possibility of using the ship temporarily while awaiting full project completion.
On the topic of Cyprus’s new competitive electricity market, Papanastasiou expressed uncertainty about its impact on prices, citing the market’s small size as a potential hindrance to healthy competition. He stressed that consumer choice would be crucial for fostering competitive conditions, allowing consumers to select suppliers offering the best prices. The state, he noted, could regulate the market if distortions arise.
The Minister also addressed the integration of Renewable Energy Sources into Cyprus’s electricity mix, highlighting the need for production storage solutions like batteries. Plans are underway to create a central storage system to stabilize the network, and a subsidy plan for home batteries is expected by year-end. For those unable to install photovoltaic systems, such as apartment dwellers, energy communities will be established, with the first in Kato Pyrgos Tyllirias, supported by a European Commission subsidy.
Regarding the Great Sea Interconnector, a European project, Papanastasiou identified three main challenges: funding, technical issues, and geopolitical concerns. The project, he noted, has secured 657 million euros from the EU, with access to another 100 million, but additional funding sources are needed. The technical challenge involves laying infrastructure across a deep, lengthy stretch of sea between Cyprus and Crete, while geopolitical management is crucial for the project’s continuation.
Discussing Cyprus’s Exclusive Economic Zone developments, Papanastasiou mentioned the Aphrodite and Kronos gas fields, which are progressing. Kronos, on a fast track, benefits from nearby Egyptian infrastructure, facilitating connections for gas processing and export. In contrast, the Aphrodite unit will be sea-based, with a pipeline transferring clean gas to Egypt for local use or liquefaction.
Papanastasiou expressed restrained optimism about starting Kronos exports by 2027, acknowledging the challenges but affirming the commitment of all parties involved to achieve this target.