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

by THEFUTURE.TEAM

February 2, 2026

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.

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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 Ultimately, the project aims to gradually retire the outdated steam turbines, thereby curtailing emissions and aligning with broader environmental goals.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.

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Greek And Cypriot Banks Propel Economic Growth With Aggressive Credit Expansion

by THEFUTURE.TEAM

May 25, 2026

Robust Q1 Growth Sets The Stage

Banks in Greece and Cyprus are accelerating lending activity, with total credit expansion projected to approach or exceed €15 billion in 2026. The increase is reinforcing the banking sector’s role in supporting profitability and broader economic growth across the region.

Targeted Lending Initiatives And Sector Performance

According to reports by Greek business outlet Newmoney, banks are increasingly relying on credit expansion to sustain earnings growth as interest rate dynamics shift across Europe. First-quarter results already point to strong momentum in lending activity.

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Eurobank has set a target of €3.8 billion in credit expansion this year. National Bank of Greece and Piraeus Bank are each targeting €3 billion, while Alpha Bank aims for €3.5 billion. Smaller lenders are also expanding aggressively, with CrediaBank targeting €1.2 billion and Optima Bank aiming for €1.1 billion.

Notable Banking Results Across Markets

First-quarter results underline the scale of the lending rebound. Banks that have reported Q1 figures recorded cumulative credit expansion of €4.7 billion. Piraeus Bank increased its loan portfolio to €38.6 billion, while net credit expansion reached €1.3 billion across major business segments. At National Bank of Greece, new loan disbursements rose 50%, contributing to net credit expansion of €500 million.

Meanwhile, Eurobank reported a 9.8% increase in net credit expansion to €1.1 billion. In Cyprus, Bank of Cyprus recorded Q1 lending of €829 million, up 9% compared with the end of 2025, while Optima Bank posted a 27% year-on-year increase in loan disbursements to €1 billion.

Sectoral Dynamics And Asset Quality Improvements

A recent report from UBS showed that business lending remained the strongest growth driver in March, increasing 10.9% year-on-year. Consumer lending rose 7.7%, while housing loans increased 1.1%. Asset quality also continued to improve. Non-performing loans declined to 3.3% in Q4 2025, down 30 basis points from the previous quarter, reflecting the sector’s ongoing balance-sheet clean-up.

Despite the strong lending momentum, profitability remained broadly stable in the first quarter. Combined net profits at major banks, including National Bank of Greece, Piraeus Bank, Eurobank, Optima Bank and Bank of Cyprus, totaled €1.12 billion, representing a marginal year-on-year decline of 0.27%.

Profitability And Revenue Breakdown

Profit trends varied across institutions during the quarter. Net profit at National Bank of Greece declined 9.9%, while Piraeus Bank reported a 1.42% decrease. By contrast, Eurobank increased profitability by 5.3%. In Cyprus, Bank of Cyprus reported a 3% increase in profit, while Optima Bank posted a 22% rise. Across the sector, net interest income increased 1.4% to €1.93 billion, although performance differed among individual banks. Fee income recorded stronger growth, rising 20% year-on-year to €590 million.

Long-Term Trends And Strategic Impact

Over the past year, listed banks in Greece and Cyprus generated combined post-tax profits of €5.458 billion, up 15.4% from the previous year. During the same period, net interest income declined 4.2% to €9.307 billion, reflecting pressure from changing rate conditions.

Balance-sheet quality continued to strengthen as non-performing loans fell to €5.7 billion, down 5.2% compared with December 2024. Since March 2016, banks in the two markets have reduced non-performing exposures by an estimated €101.5 billion, equivalent to a cumulative decline of 94.7%.

The sustained improvement in asset quality, combined with expanding loan portfolios, is reinforcing the sector’s role in financing business activity and economic recovery across Greece and Cyprus.