President Nicos Anastasiades believes Cypriots will soon be paying less for electricity once the market opens up and Cyprus’ natural gas resources start flowing to the LNG terminal being built.
Anastasiades expressed his expectations on Monday when receiving the annual report of the Electricity Authority of Cyprus (EAC) for 2019, from its chairman Michalis Komodromos.
Cyprus has started building its first LNG import facility at Vassiliko, a cornerstone of its cleaner energy drive from fuel-powered plants.
Touted to be the largest energy project in Cyprus, costing €289 mln, the natural gas import terminal will have an LNG floating storage, regasification unit (FSRU), pipeline and related infrastructure.
The Electricity Authority of Cyprus is also contributing 43 million euros to the project.
It is expected to be completed over the next two years.
Opening up the electricity market has been an ongoing project for years with developments expected in 2021.
Komodromos said that the Annual Report includes the financial results and the challenges that the organisation will be facing in the near future.
“The results for 2019 are positive, however indications regarding results for 2020 are negative.
“This is mainly due to the reduction in the sale of electricity and the €35 mln that the EAC has had to absorb as a result of a price reduction by 10% over a six-month period,” said Komodromos
Anastasiades congratulated the EAC on the proper management and social sensitivity the Authority exhibited by reducing the price of electricity in light of the pandemic, expressing the hope that plans for opening the market will proceed.
“I believe that the natural gas terminal is proceeding according to the time frames, so that the project can be completed in 2022, to receive a supply of natural gas which will reduce production cost.”
“As a result, we will have the opportunity to offer cheaper electricity to the people of Cyprus,” President Anastasiades concluded.