EIB funds cleaner new Cyprus power plant

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The European Investment Bank has approved €76 mln to finance the construction of a new power plant outside Limassol by the Electricity Authority of Cyprus for cleaner energy transition.

According to an EIB statement, the new 160 MW Combined Cycle Gas Turbine at Vasiliko power plant will enable a shift away from fossil fuels, reducing greenhouse gas emissions and other forms of air pollution.

The EIB will provide €76 mln via a 15-year loan to finance construction and connection of the new  €152 mln plant at Vasiliko, Limassol, alongside an existing energy generation facility and industrial site.

Once operational, the new 160 MW CCGT plant will contribute to ensuring sufficient generation capacity to support the shutdown of outdated oil-fuelled power plants.

The new Vasiliko plant will also provide flexibility to allow greater use of intermittent wind and solar power in the future.

The new plant will be the most efficient gas power plant in Cyprus and use state of the art CCGT technology.

“The important contribution of the new Vasiliko power plant to enable Cyprus to be powered by cleaner energy has been recognised by the EIB’s latest financing to the EAC.

“The new long-term EIB loan shows how the EU Bank supports transformational investment in this country,” said EAC chairman Michalis Komodromos.

Energy Minister Natasa Pilides said that the EIB has unique technical and financial expertise in the energy sector and is a valuable partner in Cyprus’ efforts to deliver on climate goals and move away from dependence on oil-fuelled power generation.

“We welcome the EIB’s recognition of the importance of supporting the energy transition in Cyprus and their support for the new Vasiliko facility.”

“The European Investment Bank is supporting energy transition in Cyprus and around the world.”

As part of the EIB Energy Lending Policy agreed in 2019, it is committed to supporting gas projects already under appraisal, before moving to renewables-only lending from 2021.

“The EIB looks forward to working together with the Electricity Authority of Cyprus and other energy project partners to support future clean energy investment in Cyprus,” said Lilyana Pavlova, EIB Vice President responsible for lending operations. (source CNA)