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€120 mln loan deal signed for first private energy plant

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Cyprus’ first private power plant is on track to go online in 2023, as the project owners Cyfield Group announced the signing of the final financing agreement for the 260MW station.

As announced by Cyfield, the final financing agreement was signed following a partnership between the Bank of Cyprus and Eurobank for the first private conventional gas-fired electricity generation station, known as Power Energy Cyprus (PEC).

The loan of €120 mln, which will largely cover the construction costs of the power plant, was jointly undertaken by the Bank of Cyprus and Eurobank (partnership). In addition, Cyfield has raised another €80 mln.

The €200 mln plant to be built by the Cyfield group at Vasiliko will operate with modern combined cycle technology with three gas turbines producing electricity from natural gas.

“With great efficiency, it is estimated that the station will significantly reduce electricity costs for companies and households.

“It will also come to cover the energy sufficiency of Cyprus, having the ability to work non-stop for 30 years,” said Cyfield.

Soon the company will enter the Electricity Supply sector, offering Cypriot consumers cheaper electricity and better service, it claims.

The conventional private power generation station will produce 25-30% of Cyprus’ electricity needs.

The power plant at the Vassiliko energy hub will have the capacity to produce 260 megawatts (MW) of electricity, Cyprus, which has an average capacity of 1100 MW.

PEC said it had ordered 3 SGT-800 gas turbines from pioneers in electricity generators Siemens to be installed at the station.

Siemens will also supply PEC with a steam turbine, which will utilize the gas turbines’ exhausts to produce more energy at an even lower cost.

The steam turbine will be responsible for one-third of the plant’s total energy production.

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.

Cyfield said the plant is expected to be up and running by the end of 2023; however, natural gas may not be available.

The government’s most optimistic estimates say the LNG terminal will be operational in late 2023, with some official sources saying it will not be operational before 2024.

In a recent interview with Phileleftheros daily, Energy Minister Natasa Pilides confirmed delays in constructing the LNG terminal infrastructure.

Meanwhile, the Electricity Authority of Cyprus has already commissioned the Greek company TERNA to construct a new 160-megawatt combined cycle plant at Vassiliko, with expected delivery in the summer of 2024.

The island’s electricity supply will largely depend on whether these two plants come online before mid-2024.