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EAC’s Strategic Move to Lower Energy Costs

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The Electricity Authority of Cyprus (EAC) is making bold moves to slash energy costs by adopting green practices and investing heavily in renewables. Key initiatives include €148 million for green energy incentives, power plant upgrades, and solar panel installations on schools, all aimed at promoting sustainability and education.

What is the Electricity Authority of Cyprus (EAC) doing to lower energy costs?

The EAC is implementing strategic changes to lower energy costs by preparing for market liberalization, adopting environmentally friendly practices, and investing in renewable energy sources. Key initiatives include €148 million in incentives for green energy, upgrades to power plants, and the installation of solar panels on 405 schools to promote sustainability and education.

The EAC’s Competitive Transformation

The Electricity Authority of Cyprus (EAC) is at a pivotal juncture as it embraces significant changes to remain competitive. With the full liberalization of the electricity market on the horizon in July 2025, the energy minister emphasized the need for the EAC to evolve, stressing that, “This organisation needs to change.” During a press conference, George Papanastasiou, the acting energy minister, highlighted the EAC’s critical role as the country’s main energy producer and its responsibility to reduce electricity costs for consumers.

The challenge is not only about lowering prices but also about adopting more environmentally friendly practices. Decreasing greenhouse gas emissions and shifting away from conventional fuels are part of a broader strategy to cut costs and protect the environment. The energy ministry, in concert with the Renewable Energy Sources (RES) Fund, is gearing up to introduce incentive programs worth €148 million for the 2024-2025 period to further this initiative.

Renewable Energy and Financial Health

Giorgos Petrou, the chairman of the EAC, outlined the organization’s immediate challenges, which include preparing for the expected competition post-market liberalization, the integration of electrical interconnectors, and the introduction of natural gas for power generation. Additionally, significant upgrades are planned for the Dhekelia power station along with the installation of a new turbine at the Vasiliko power plant.

Amidst these developments, the transition to green energy remains a top priority. Petrou pointed out the success of recent projects, such as the operational Tseri solar park and another in Akrotiri, Limassol, which impressively generates electricity at just 5 cents per kilowatt-hour. Simultaneously, the EAC is seeking regulatory approval for a significant energy storage facility in Dhekelia to bolster the grid’s reliability and efficiency, marking a leap towards energy modernization.

EAC’s Solar Initiatives and Education Collaboration

The EAC’s commitment to sustainable energy is further exemplified by its collaboration with the education ministry. Together, they’ve successfully installed solar panels on 405 schools throughout Cyprus, boasting a substantial combined capacity of 4.9 megawatts. This initiative not only contributes to the country’s renewable energy goals but also serves as an educational tool, exposing students to the benefits of solar energy and sustainability from an early age.

In terms of financial performance, the EAC reported encouraging figures for the year 2023. Total revenues reached €1.3 billion, with expenditures slightly lower at €1.2 billion. This financial management resulted in an operating profit of €61 million and a solid net profit of €36 million, marking a noticeable improvement from the previous fiscal year.

Strategic Investments to Secure Energy Future

Looking ahead, the EAC is not just focusing on immediate financial gains but is also investing in strategic projects that will define Cyprus’s energy landscape in the coming years. With the planned liberalization of the market, the EAC is positioning itself as a leader in energy innovation and cost reduction, ensuring that it remains at the forefront of the country’s energy sector and continues to meet the evolving needs of its consumers.

What is the Electricity Authority of Cyprus (EAC) doing to lower energy costs?

The EAC is implementing strategic changes to lower energy costs by preparing for market liberalization, adopting environmentally friendly practices, and investing in renewable energy sources. Key initiatives include €148 million in incentives for green energy, upgrades to power plants, and the installation of solar panels on 405 schools to promote sustainability and education.

How is the EAC preparing for market liberalization in July 2025?

The EAC is taking steps to remain competitive in the upcoming liberalized electricity market by investing in upgrades to power plants, integrating electrical interconnectors, introducing natural gas for power generation, and implementing incentive programs for renewable energy sources. These initiatives aim to ensure the EAC’s continued success in the evolving energy sector.

What educational initiatives has the EAC undertaken in collaboration with the education ministry?

The EAC has collaborated with the education ministry to install solar panels on 405 schools across Cyprus, with a total capacity of 4.9 megawatts. This initiative not only contributes to the country’s renewable energy goals but also serves as an educational tool, exposing students to the benefits of solar energy and sustainability from an early age.

What strategic investments is the EAC making to secure Cyprus’s energy future?

The EAC is investing in projects such as upgrades to power stations, the installation of new turbines, and the development of energy storage facilities to bolster the grid’s reliability and efficiency. By focusing on innovation, cost reduction, and sustainability, the EAC is positioning itself as a leader in Cyprus’s energy sector and ensuring it meets the changing needs of consumers.

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