First private power plant to go online in 2023

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The island’s first private conventional power station will be going live in 2023, offering cheaper electricity, as work on the Power Energy Cyprus plant is moving along after some delays.

The €200 mln plant, to be built by the Cyfield group, was initially earmarked to go online this year in time for the arrival of Liquefied Natural Gas (LNG) for power generation.

In an announcement released on Thursday, PEC said it had ordered 3 SGT-800 gas turbines from pioneers in electricity generators Siemens, installed at the station.

According to PEC’s CEO George Chrysochos, the plant is one of Cyprus’ largest infrastructure projects.

The station will operate with modern combined cycle technology with three gas turbines that will produce electricity from natural gas.

Chrysochos argued the station would contribute to bringing down high energy costs in Cyprus to the consumer’s benefit.

“At the moment, the contracts have been signed for the start of construction and installation of the machines that will have a productivity of 60%, something that is expected to reduce the energy costs of Cyprus significantly.

“Based on current data and consumption needs, this station is expected to cover one-third of Cyprus’ electricity demand.”

PEC has also signed and accepted the Transmission System Operator’s preliminary connection terms.

Chrysochos said that all the earthworks had been completed within the initial timeframes.

Fire protection tanks, the storage tank for deionized and drinking water, pumping station, management building, and warehouses have also been built.

The design for installing the underwater pipeline that will carry water from the sea to the station has also been completed.

The plant is expected to be operational in early 2023, and the €200 mln cost of the investment will be covered by equity and lending from Cypriot banks.

PEC will mainly use LNG provided by the state Natural Gas Public Company (DEFA), operating a floating LNG import terminal located at Vasiliko Bay, near Limassol.

The facilities at Vasiliko, Limassol, will be the island’s first LNG terminal, and construction is expected to be concluded in 2022.

In case works at Vasiliko and the arrival of LNG takes longer than initially planned, PEC’s plant can temporarily produce energy by using conventional Diesel fuel.

The power plant being built in the Vasiliko energy hub will have the capacity to produce 260 megawatts (MW) of electricity, Cyprus, has an average capacity of 1100 MW.

Cyfield acquired the project from its previous Russian owners in 2018.