The upgrade of the Dhekelia power station, estimated to cost approximately €180 million, the installation of battery-based energy storage systems, and the development of photovoltaic parks aimed at reducing energy costs for households and businesses are the Electricity Authority of Cyprus (EAC) priorities for 2026.

Speaking to Brief, Giorgos Petrou, Chairman of the EAC Board of Directors, referred to the ambitious investment programme for upgrading the Dhekelia power station, which is expected to amount to around €180 million.

The investment includes the installation of three generators with a capacity of 81 MW, at a total cost of €140 million, as well as the deployment of energy storage systems using batteries with a capacity of 80 MW, at a cost of €40 million.

The installation of the battery storage systems is expected to take place around mid-2027, with the project estimated to be completed in early 2028.

This project forms part of the broader strategy to strengthen renewable energy sources and promote the hybrid operation of power generation stations, with a dual objective: enhancing grid flexibility and reducing energy costs.

According to Mr Petrou, the investment will be financed through the Authority’s existing reserves and possibly through the European Investment Bank (EIB), with efforts underway to secure a long-term loan.

Domestic financial institutions have also expressed interest in financing the project.

“We are in discussions with all interested parties to determine who can offer us the most attractive interest rate,” Mr Petrou said.

He clarified that, in line with the EIB’s standard practice when lending to organisations in EU member states, financing is often accompanied by grant support.

Specifically, for the battery systems, the EIB is willing to provide a grant of approximately €6 million, while for the generators the corresponding grant could reach €25 million.

“Taking this advantage into account, the EAC may proceed with securing a loan from the EIB,” Mr Petrou noted.

The EAC also aims within 2026 to expand its investment in green energy through the acquisition of photovoltaic parks. Part of the funding for these investments will come from the Recovery and Resilience Plan.

It is noted that negotiations are currently underway between the Authority and companies already active in the photovoltaic sector, with the aim of further penetration into a field where progress should have been made earlier.

According to the Chairman of the EAC Board, particular emphasis is being placed on reducing energy costs and integrating solar energy into the system, with clear priorities set. Battery-based energy storage, Mr Petrou stressed, constitutes one of the key pillars of the EAC’s strategy for modernising the electricity grid.