The Energy Minister has set a three-year time horizon for Cyprus to have a lower cost of electricity production. Speaking on Sigma’s tv show, George Papanastasiou indicated that the high cost of electricity production, delays in renewable energy implementation, high fuel prices, and pollution issues have created a scenario that leads electricity prices to very high levels.
“The planning we have at the ministry is such that we believe that in the next three years, we will be able to have a lower cost of electricity production,” he said. When asked how this would be achieved, the Energy Minister referred to the change of fuel, that is natural gas.
“We have a plan to change the fuel. Our plan is for natural gas, which reduces pollution by 20-30%, so there will be a serious reduction in pollution. The natural gas itself will come from sources that offer much more attractive prices than those sold in Europe today. And the other thing is that we are helping the renewable energy sources to develop and see them in more homes, industries, and hotels,” he said.
Asked to respond on how this programming will be implemented, he referred to the natural gas terminal under construction in the area of Vasilikos, highlighting the importance of the project. Regarding the completion timeline of the work, Mr. Papanastasiou expressed confidence that it will be completed by the end of 2023 or early 2024.
“There are two ways of our programming. As a first step, we intend to use the infrastructure currently being under construction in Vasilikos area. This project has been delayed significantly, it was supposed to be delivered in September 2022. The consortium has promised us that it will be completed by October 2023. The way I see the projects progressing, I believe it will be completed by the end of 2023 or early 2024. So, within the plan and provided that this happens, and this is the purpose, that we will operate this specific terminal for two years until other infrastructure is built to bring natural gas to the area. And the reason I insist on the area is that the introduction of natural gas from the Eastern Mediterranean region is clearly lower than buying LNG, or liquefied natural gas, which will supply the unit in Vasilikos,” he said.
