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Electricity Authority Of Cyprus Invests in Dekeleia Energy Upgrade to Boost Green Power

Advancing Energy Security And The Green Transition

In a decisive move towards enhancing energy security and accelerating the green transition in Cyprus, the Electricity Authority of Cyprus (EAC/AHK) is modernizing its Dekeleia Power Station. With a substantial investment of €180 million, the authority is spearheading the installation of new generation units and advanced energy storage systems, marking a pivotal step away from aging, high-emission steam turbines.

Comprehensive Investment And Environmental Oversight

The project, which integrates state-of-the-art Open Cycle Gas Turbines (OCGT) capable of operating on diesel initially and transitioning to natural gas as it becomes available, showcases both flexibility and a clear path toward cleaner energy solutions. The initiative is currently subject to an Environmental Impact Assessment (EIA), with formal public consultations scheduled to conclude on February 28, 2026. This transparent process ensures that all stakeholders are informed as AHK modernizes its infrastructure.

Enhancing Production Capacity And System Reliability

The proposed expansion involves deploying a new OCGT unit with a capacity between 60 and 115 MWe. Designed to boost production capability and system stability, this unit is expected to significantly reduce the carbon footprint of the Dekeleia facility. Ultimately, the project aims to gradually retire the outdated steam turbines, thereby curtailing emissions and aligning with broader environmental goals.

Integration Of Advanced Battery Energy Storage

A central element of the project is a 160 MWh Battery Energy Storage System (BESS). The system is intended to stabilize the grid and enable greater use of renewable energy. It will consist of modular battery units, likely based on lithium iron phosphate or similar technology, housed in prefabricated enclosures with cooling, flame detection and fire-suppression systems.

Robust Operational And Safety Measures

The new OCGT unit and planned natural gas supply system will be located within the existing Dekeleia site, primarily on the western side of the plant. The facility operates under SEVESO safety regulations, which are designed to limit the impact of potential industrial incidents. Additional safeguards include selective catalytic reduction (SCR) systems to reduce NOx emissions and leak-prevention measures.

Financial Strategy And Broader Impacts

The modernization project is financed through the authority’s reserve resources, with significant backing from the European Investment Bank (EIB) via grants. This strategic financing not only upgrades critical infrastructure without adding to public debt, but it is also projected to yield lower electricity prices for both households and businesses. Currently, the Dekeleia Power Station contributes approximately 34.5% of AHK’s total electricity production, emphasizing its central role in Cyprus’s energy framework.

A Legacy in Transition

The Dekeleia facility, operational since 1953, has evolved from the pioneering Dekeleia A, with its early 84 MW capacity, to the larger Dekeleia B complex consisting of six conventional steam turbine units with a combined capacity of 360 MW. Supplementary internal combustion units (MEC 1 and MEC 2) further bolster production, ensuring the facility’s adaptability to rising energy demands. As the transition to modern OCGT and cleaner fuels gathers momentum, the legacy infrastructure that once defined Cyprus’s energy production is being reimagined for a sustainable future.

Looking Ahead

This transformative project underscores AHK’s commitment to a robust, reliable, and environmentally responsible energy system. With technologically advanced generation units, integrated battery storage, and rigorous safety measures, the Dekeleia Power Station stands at the forefront of Cyprus’s journey towards a cleaner and more efficient energy landscape. The strategic modernization not only meets current demands but also paves the way for the future integration of renewable sources, ensuring long-term stability and reduced environmental impact.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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