The Electricity Authority of Cyprus (EAC) delivered its annual operational report for 2024, outlining significant progress in cost management, profitability, and renewable energy initiatives. The report, presented by Chairman Giorgos Petrou to government officials and the media, detailed strategic adjustments that have yielded a net profit of €37 million against total revenue of €1.2 billion.
Streamlined Cost Control And Profit Growth
The EAC reported spending €211 million on greenhouse gas emissions allowances – a reduction of €45 million compared to 2023 – benefiting from a decrease in the unit price of allowances. Despite an 8.5% rise in payroll costs driven by new hires and cost-of-living adjustments, the systematic allocation of operating expenses underscores the authority’s disciplined fiscal management. Fuel purchases remained the dominant expense, accounting for 73% of operating costs, while materials and maintenance led to marginal contributions of 4% and 3% respectively. Operating profit reached €57 million prior to interest and tax expenses.
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Expanded Renewable Energy And Technological Upgrades
The utility’s flagship Vasiliko power station continues to generate the majority of electricity at 69%, with Dhekelia and Moni power plants contributing 29% and 1% respectively. In a move to modernize operations, Petrou announced that Vasiliko’s turbines have been modified for natural gas operation – pending final tests – signaling an important shift in fuel versatility.
Fuel prices fell by 4.7% during the year, even as electricity demand increased by 5.6%, reflective of evolving consumption patterns. However, the inability to export surplus renewable energy has necessitated production throttling. To address this challenge, the EAC is investing in multiple energy storage systems at transmission substations, ensuring a more resilient and adaptive energy grid.
Infrastructure Investments And Future Prospects
The authority is also expanding its footprint in solar energy, with operational solar parks at Akrotiri and Acheras delivering electricity at a competitive cost of 5 cents per kilowatt-hour. Plans for additional solar facilities are underway. Additionally, grid modernization is in progress through the rollout of smart meters, with an ambitious target of installing 400,000 units – 150,000 of which are already operational.
To support these extensive upgrades, the EAC has applied for a €215 million loan from the European Investment Bank, dedicated to the enhancement of transmission and distribution networks. These strategic initiatives mark a forward-thinking approach to energy management, underscoring the EAC’s commitment to operational excellence and sustainable growth.
