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MPs warn of power shortage by 2030

Cyprus Mail · 2026-07-02

AI SUMMARY

• What happened: Opposition MPs in Cyprus warned of a potential electricity shortage by 2030, following a closed-door session discussing a stalled LNG project at Vasiliko, which is crucial for the island's energy future. • Why it matters: The decommissioning of 720 megawatts of power generation capacity by the end of 2029 raises urgent concerns about Cyprus's ability to meet its electricity demands, potentially leading to high costs and energy crises. • What to watch next: The government's progress in securing new contractors for the LNG project and developing a comprehensive energy strategy will be critical in addressing the looming power shortage.

**MPs Warn of Potential Power Shortage in Cyprus by 2030**

Cyprus is facing a potential electricity shortage by the year 2030, according to opposition politicians who spoke out following a closed-door session of the House audit committee on Thursday. The session focused on a report from the Audit Office regarding the stalled liquefied natural gas (LNG) project at Vasiliko, which has raised significant concerns about the island's energy future.

The meeting was not open to the media due to the sensitive nature of the discussions, which may affect ongoing arbitration proceedings in London involving the Cypriot government and a Chinese consortium that previously held the contract for the LNG terminal. However, following the session, opposition leaders expressed their alarm over the current state of Cyprus's energy infrastructure.

Stefanos Stefanou, leader of the opposition party Akel, characterized the situation as “one of the biggest scandals in the history of Cyprus,” warning that the island is at risk of being left without adequate power supply after 2030. He emphasized the urgency for the government to take action, stating, “We risk being left without power after 2030, and the solutions will be bloody, financially speaking.”

Stefanou pointed out that the failure to utilize natural gas has resulted in persistently high electricity prices for consumers. He noted that Cyprus has incurred significant costs related to greenhouse gas emissions allowances, amounting to €1.2 billion between 2018 and mid-2025. He criticized the current administration's response to the crisis, describing it as “slow as molasses” and accusing the government of exacerbating the situation rather than addressing it effectively.

The opposition leader highlighted a critical deadline approaching at the end of 2029, when the authorities are required to decommission power turbines at the Dhekelia power station and three additional turbines at the Vasiliko plant. This decommissioning will remove a total of 720 megawatts from the grid, necessitating the urgent replacement of this capacity to avoid power shortages.

“The government must assume its responsibilities and give convincing answers,” Stefanou urged, calling for immediate action to prevent a looming energy crisis. He also mentioned that the government is still in the process of seeking new contractors for the LNG project, which has been stalled for several years. According to Stefanou, the government is still at preliminary stages in addressing the project, indicating a lack of progress.

Alma MP Odysseas Michaelides acknowledged that the current administration had inherited the LNG project issues but criticized it for failing to resolve the problem over the past three years. The LNG contract was originally awarded in 2019 with a 24-month deadline for completion. However, the Chinese-led consortium responsible for the project has missed multiple delivery deadlines, including September 2022, July 2023, October 2023, and the latest target of July 2024. In July 2023, the consortium terminated the contract, citing irreconcilable differences with the Cypriot government and outstanding invoices.

The closed session of the audit committee included the auditor-general and officials from the energy ministry, the attorney-general’s office, the energy regulator, and the Natural Gas Public Company (Defa). The discussions underscored the complex and contentious nature of the LNG project and the broader implications for Cyprus's energy strategy.

As the situation develops, the opposition continues to call for greater transparency and urgency from the government to address the impending energy crisis. With the decommissioning of significant power generation capacity on the horizon, the need for a robust and sustainable energy plan has never been more critical for Cyprus.

Source: Cyprus Mail
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