Electricity Authority of Cyprus to develop its properties

“Cheap solar” is a myth

The state-owned Electricity Authority of Cyprus is embarking on a nationwide plan to reassess all its properties in order to better utilise them and increase revenue for the power utility.
This falls within a general plan to improve earnings by divesting away from the conventional oil-based power production into new areas, such as alternative sources of energy, for which it is establishing wholly-owned subsidiaries.
Commerce, Industry and Tourism Minister Antonis Paschalides told a recent press briefing that “the EAC plans to commercially develop the area opposite its head offices in central Nicosia” that would benefit the area, the EAC staff (for parking) and would boost EAC revenues. He added that “it is a shame that such valuable property remains unutilised,” but clarified that a sale of the land has not been discussed.
The EAC’s press spokesman, Costas Gavrielides, told the Financial Mirror that “we will review each case accordingly, wherever there are unutilised assets. One example is the vacant lot opposite our regional office in Nicosia on the corner of Photi Pitta and Spyrou Kyprianou Avenue.”
“At present it is being used as a parking lot for the EAC staff and a small number for customers. The idea is to create a development that would include shops and maybe cafes on the ground level, and perhaps offices above that,” Gavrielides said.
“The Nicosia Municipality is keen to see a multi-storey parking facility, either overground or underground. One idea is for the property to be developed by the EAC Pension Fund, which means that the EAC’s own funds would not be used.”
Gavrielides added that the EAC also plans to get more actively involved in alternative sources of energy (ASEs), but explained that there is a general misconception about energy production from alternatives sources such as wind and solar.
“Power generation (from these sources) usually costs much more than petrol generated energy – as much as eight times more expensive in the case of solar and at least four times more in the case of wind power. It’s the initial investment which is expensive,” he explained.
“Despite the EU forcing member states to produce more using ASEs, these cannot replace conventional methods of power generation. But they can contribute significantly towards the reduction of oil and coal produced energy. The maximum that can be reached from ASEs is 15-20%,” he said.
Meanwhile, the EAC confirmed a report published in Monday’s Alithia that the utility plans to create a number of new subsidiaries in order to divest its operations into power production from ASEs. The newspaper report added that the EAC would even create monopolies in certain critical areas.
“The EAC reaffirms its commitment to dynamic involvement in electricity generation from ASEs,” the utility said in an announcement.
“EAC’s plans will also help reduce Cyprus’ purchase of carbon emission credits, for which the Authority is not responsible. The EAC has already invested millions of euros in power generation units that run on natural gas, the delay in the arrival of which cannot be blamed on the Authority. The use of natural gas will drastically reduce carbon emissions.”
Confirming the Alithia news report, the EAC announcement added that it “is studying the prospect of setting up subsidiaries that will have independent accounting procedures and transparency… which will also allow joint ventures with others.”
However, the EAC statement clarified that any new venture “will not prevent any other company from getting involved in ASE power generation, nor will this be considered as a monopoly.”
The newspaper reported that six subsidiaries would be established – four in the area of ASEs (solar, geothermal, wind parks and biomass), one that would be in charge of the EAC’s desalination projects and one that will eventually become the 44% joint venture partner in the new LNG terminal to be built at Vassiliko.
Cyprus wants to import 1 bln cubic meters (35.3 bln cubic feet) of natural gas a year from 2013, rising to an annual 1.7 bln cubic meters after ten years.
Cyprus government officials hope to sign an agreement either with Egypt or with Algeria by the end of the year.