EAC

A principle synonymous

with development

Electricity was first introduced to Cyprus in 1903 with the installation, by the colonial British administration, of an electric generator for the needs of the Governor in Nicosia. A second generator was installed soon after at the capital’s General Hospital.

Electricity was first introduced to Cyprus in 1903 with the installation, by the colonial British administration, of an electric generator for the needs of the Governor in Nicosia. A second generator was installed soon after at the capital’s General Hospital.

On a wider scale, electricity was gradually enjoyed by Cypriots from 1912 onwards, with production and public distribution on a commercial basis.

A leading city was Limassol, where an electricity company was established with generators.

In the very next year, the Nicosia Electric Company was founded, and several years later (1922 onwards) other cities and rural centers (such as Morphou, Platres , Pedhoulas , Lefkara , Paralimni) followed.

An historic 1951 photo of the operation of a power transmission line tower.

The establishment of the EAC

The first distribution networks (low voltage) were installed in the city centers and connected to existing electrical generators for lighting, supplying a small number of consumers.

The Cyprus Electricity Authority was established on October 30, 1952. The Authority’s first offices in Nicosia (Old Electric).

Until 1952, when the Cyprus Electricity Authority was established, electricity expansion over the whole island continued at a very low pace, while rural electrification was virtually non-existent.

The aforementioned method of electricity production and distribution was uneconomic and did not allow for its rapid expansion and contribution to the development of the local economy. The ideal solution would be the establishment of a central organization that would respond to the electricity needs of the whole of Cyprus.

Thus, on October 30, 1952, the Cyprus Electricity Authority (ECA) was established, responsible for the production, transmission and distribution of electricity. In the first two years following its establishment, EAC proceeded to expropriate the small electrical companies of all the cities of Cyprus, in launching the massive effort of island wide electrification.

The power plants

In 1953, the first power station was established in Dhekelia through government funding. With the operation of the Dhekelia station, the main transport lines that would connect it to the main cities were also built.  Dhekelia-Nicosia, Dhekelia-Larnaca, Larnaca-Limassol and so on. From here on, the development of the EAC moved rapidly, particularly following the establishment of the Republic of Cyprus in 1960.

The first electricity generating station in Cyprus was built in Dhekelia.

With the ever greater development of the Cyprus economy, demands for electricity rose. While in 1952, the Authority supplied just Nicosia and Limassol, by 1954, electricity was introduced to 11 cities and small communities and on independence year, it multiplied to 100 cities and communities, with a corresponding increase in transmission lines, transmission Substations and Network and Distribution Substations.

The forging of an electricity transmission system began in 1952, under adverse working conditions, without mechanical means.

EAC built a second power station in Moni, with the first phase of construction completed in 1966 and the last (third) in 1976.

In parallel, the transmission and distribution network was upgraded in the city centers and expanded significantly, gradually supplying the whole of Cyprus.

Following the tragic events of 1974, a leapfrog development of the Cypriot economy followed again, necessitating the construction of a new power plant, to meet the growing demand for electricity, but also replace the first and now non-viable units of the first plant in Dhekelia.

In 1980, next to the old Dhekelia station, construction work began on the first phase of the new power station, Dhekelia B, completed in three stages in 1993. The old station was demolished in 2002 after operating for 40 years.

Construction of the Moni Power Station (1964).

The Vassiliko Station

In 1997, work begun on the construction of a new power plant in the Vassiliko area. The first phase of the Vassiliko Power Station, consisting of two steam generating units and an open cycle gas turbine, became operational in 2000.

Subsequently, a third steam generating unit was installed and became operational in 2004, with two combined cycle gas turbine units added in 2010 and 2011. Additionally, in Dhekelia, internal combustion engines were installed and put into commercial operation in 2009 and 2010.

The deadly explosion at the Mari naval base on 11/7/2011 almost wiped out the Vassiliko Power Station.

The Vassiliko station was destroyed by deadly explosion at Mari.

The destruction forced the EAC into a titanic struggle to repair the Vassiliko station and restore operation. In an undeniably great achievement, the station was rebuilt in just two years. By the summer of 2013, all production units became fully operational.

In just two years, the EAC managed to rebuild Vassiliko.

Independent Regulated Activities

According to a European directive and related decisions of CERA in 2014, the EAC has been separated into four Basic Independent Regulated Activities and Non-Regulated Activities.

Each Core Regulated Activity organises its departments independently in order to effectively respond to new market needs. The functional separation of EAC’s activities ensures equal treatment of all market participants, full transparency and prevents cross-subsidies.

Transmission and Distribution are monopoly activities by legislation and are regulated by CERA, while production and supply are now active in free competition.

New unit in Vassiliko

In February 2022, the contract was signed for the 6th Combined Cycle Gas Turbine Unit at the Vassiliko Power Station with a maximum capacity of 160MW. The new production unit is expected to commercially operate before summer 2024. The unit will have natural gas as its main fuel, but will also have capacity to operate with refined oil ( diesel ) as an alternative fuel.

Visit by the EAC President to Vassiliko.

EAC today

2022 marks the 70th anniversary of the establishment of the EAC.

The energy sector, both internationally and in Cyprus, faces significant challenges and the EAC is called upon to respond to the constantly changing external environment and the intensifying demands of interested parties.

EAC has a modern and reliable transport system. The transmission network forms the backbone of the EAC’s electrical system, as it interconnects the power plants with the distribution network. It consists of 62 transmission substations, 1150 kilometers of high voltage overhead lines and 212 kilometers of underground cables.

The e – charge service was created by the EAC seven years ago. At the moment there are 31 vehicle charging stations in operation throughout Cyprus and is planning to purchase another 40, which will be installed subsequently.

The EAC distribution system, connecting transmission stations to the load-consuming premises, consists of 6,266 distribution substations, 10,849 overhead transformers, 11,264 km of underground cables and 16,358 km of overhead lines.

Green energy

Based on the EU decision to transition to a zero-carbon economy (zero emissions) by 2050, aimed towards making Europe the first climate-neutral region in the world, the integration of green energy was launched, with the consumer closely involved. He now turns into an active customer, who produces almost all his own energy needs. on average.

The EAC ‘s vision is a green energy future.

Based on the above, the network is transformed from a cable system to a platform of two-way flow of energy and information.

In this way, the distribution system becomes the driving force of the energy transition.

The aspects underlying the transformation of the distribution network, in its new role, are evolution, operational systems and design so it can support the required observability, predictability and real-time decision making.

The main actions connected to the above and being implemented, are briefly the following:

    • Connection and integration of RES into the system
    • MDMS System Application ( Meter Data Management System ) – Metric Data Recording and Management System
    • Mass installation of 400,000 smart meters by 2026
    • Installation of Network Control and Monitoring System and its Advanced Management ( SCADA / ADMS )
    • Equipment modernization and automation
    • Study on the redesign of the network and its evolution in the decade 2021-2030

Vassiliko leads the way

Today, approximately 65% of total electricity production comes from the Vassiliko Power Station and 35% from Dhekelia. The Moni Power Station, where the steam-electric units have been deactivated, there are only backup units (four open-cycle gas turbines), mainly to deal with high demand and/or emergencies.

The fuel used in EAC’s production units is fuel oil (in all the units of the Dhekelia Power Station and the steam-electric units of the Vassiliko Power Station ) and diesel (in all the gas turbines of IS Vassilikos and Moni). With the exception of the open-cycle gas turbine at the Vassiliko Power Station, all the other production units of the said station are currently in the final stages of their conversion/upgrade work, so they can operate with natural gas when it becomes available on the island.

A natural gas player

EAC is a 30% participant in the share capital of the joint venture that has been created for the construction and operation of the necessary infrastructure for receiving and storing liquified natural gas (LNG). The use of natural gas in power generation will contribute to a 25%-30% reduction in carbon dioxide emissions, with a drop in the cost of purchasing corresponding rights, as well as emissions of industrial pollutants nitrogen oxides, sulfur oxides and dust.

As Cyprus is totally dependent on oil for energy production, we are vulnerable to a rise in international prices. This is why the EAC is working on reducing dependence on fossil fuels and promoting RES.

In addition to the photovoltaic park at Tseri, the EAC has begun construction of a new 12 MW photovoltaic park at Akrotiri in Limassol. Also, in the context of a joint venture between EAC and the Holy Archbishopric, the EAC has completed planning of the development of a major photovoltaic park in the Ahera area.

In addition, the EAC, utilizing know-how and experience and in collaboration with the Ministry of Education, is proceeding with the installation of photovoltaic systems in more than four hundred schools in Cyprus. Also, the project of installing LED lamps in street lighting throughout Cyprus is almost complete.

Investments in other sectors

Beyond the production, transmission, distribution and supply of electricity, and as part of its development policy, EAC invests in a number of other sectors such as desalination, where it has high-level expertise. EAC has been operating the Desalination Unit at the Vassiliko Power Station since 2014, with the capacity to produce 60,000 cubic meters of drinking water per day, significantly facilitating the water balance of Cyprus since all production is channeled to the Water Development Department.

In addition, EAC is leading the way by supporting efforts to introduce car electrification in our country. The e – charge service was created by the EAC seven years ago, with the aim of providing electric vehicle owners access to reliable charging of their vehicles in public areas.

There are currently 31 stations in operation all over Cyprus and the EAC plans to purchase another 40 charging stations, to be subsequently installed.

Competition is a motivation for EAC development

2022 marks the 70th anniversary of the establishment of the EAC.

The Cyprus Electricity Authority was founded on October 30, 1952 and is responsible for the production, transmission and distribution of electricity in the country.

It is a public law organization that has linked its course with the progress and development of Cyprus. Today, seven decades later, business logic, flexibility, efficiency, extroversion and a customer- centric approach are required for EAC in the competitive environment. EAC President Despina Panayiotou Theodosiou, spoke to us about past, present and future.

The President of the EAC, Despina Panayiotou Theodosiou.

What is it like to head up an organisation as important to the country as EAC?

Clearly, massive responsibility and high demands for an organisation of vital importance and public benefit, which belongs to the Cypriot citizens.

In an era of constant energy changes and new data, the goal is for EAC to remain a leader on the energy map of the country.

Ahead of us is a road defined by major challenges, such as the opening up of the electricity market, the expansion of the utilisation of Renewable Energy Sources (RES), the advent of natural gas, the implementation of the investment program for the modernisation and development of infrastructure.

They are challenges that require changes and rapid adaptability, which highlight new characteristics, such as business logic, flexibility, efficiency, extroversion and a customer- centric approach.

In a wider environment of threats as well as opportunities in our sector, together with the Board of Directors and the people of EAC, we are here to shield the Organisation and utilise the opportunities that will present themselves.

Work methodically, with modesty, but also self-confidence, preparing the next day’s EAC.

With the pool of know-how, experience, specialisation and professionalism of our people, in the direction of change, I believe that we will achieve our goals, as a vertically integrated Organisation, always within the framework of Functional Separation.

The EAC headquarters in Nicosia.

Adaptability

What does the long history of the EAC bring to present and future?

During nearly 70 years of existence, the EAC has been associated with the progress and development of Cyprus.

It has given its energy to the place and its people, providing a steady boost to the economy and being the ‘pillar of reference’ in what we call quality of life.

An Organisation with a very strong social dividend carries the will for development over time. Development of human resources and infrastructure that is necessary and imperative in successfully facing constant change and new challenges in the energy sector.

The Cyprus Electricity Authority was established on October 30, 1952. The Authority’s first offices in Nicosia (Old Electric).

What determined the EAC DNA?

Undoubtedly, the ability to adapt is what defined the Organisation, its historical course, but also how it prepares for the future. After all, evolution requires adaptability and the EAC, must change in a timely manner in order to serve role and mandate.

Το προσωπικό αποτελούσε πάντα το πιο σημαντικό περιουσιακό στοιχείo της Αρχής.

Market liberalisation

How does the EAC deal with the liberalisation of the electricity supply sector?

We view the competition as a new important challenge and a motivation to improve. The opening up of the electricity market brings new conditions for the EAC as production and supply are now required to operate in non-monopoly conditions. This requires business logic, speed of reaction and flexibility.

In an ever-changing environment, complacency is a major threat.

That is why the EAC, within the institutional framework of its public character is changing so it can effectively respond to the new needs of all its consumers and customers. The upcoming competition in the production and supply of electricity creates a new development requirement, through the upgrading of infrastructure, equipment and services.

Our vision is a green energy future

What is EAC doing on green energy?

Our vision is a green energy future. That is why the EAC is implementing a multi-faceted development investment program which includes upgrading the transmission and distribution Networks, development and implementation of RES projects, modernisation of technological and mechanical equipment, participation in the natural gas infrastructure company and installation of environmental protection systems.

The EAC ‘s vision is a green energy future.

The RES sector is of particular importance as the common goal is the gradual withdrawal from fossil fuels and the reduction of greenhouse gas emissions.

After creating the first photovoltaic park of Cyprus in 2014, located in Tseri, the EAC has steadfastly promoted the development and licensing of a number of new photovoltaic installations.

Construction work has recently begun on the first phase of the large photovoltaic park at Akrotiri Limassol, with a total capacity of 12 MW. In parallel, the licensing of additional RES projects is progressing with the ultimate goal of RES making a significant contribution to the EAC’s energy mix.

EAC changes and invests in its future, committed to its role and mandate.

The EAC is also utilising its know-how and experience and in collaboration with the Ministry of Education, is installing photovoltaic systems in many schools across Cyprus. We are at 50% completion, scheduled to finish in the coming summer.

The Ukraine crisis

We are in a difficult situation in Cyprus. Following the 2013 crisis, the pandemic hit hard, followed now by the Ukrainian war. What’s your take on prospects?

The covid pandemic and, more recently, the war in Ukraine, have led to a significant increase in international fuel prices. This is obviously a global issue, so it is unrealistic to make safe predictions, especially while the wider international environment in the energy sector remains unstable and volatile.

Despite widespread uncertainty, the EAC has made significant efforts to reduce impact on consumers. With related decisions, it has offered a reduction in its tariffs, in two separate periods during the past two years, corresponding to 56 million euro. The amount in question has essentially been returned by the EAC back to society and the economy.

The Organisation seeks to respond to reasonable social demands for the cheapest electricity possible, always considering the limits of our financial capacity.

The EAC must be able to continue implementing its essential development program (such as upgrading and expanding the transmission and distribution network, development and implementation of Renewable Energy Sources projects, preparation for the operation of the competitive market, conversion of production units for the use of natural gas and so on), so as to ensure the reliability of the electricity production, transmission, distribution and supply system.

At this point it would be interesting to see how electricity prices are formulated.

As you know, Cyprus and the EAC import all their fuel needs. The price of electricity mainly concerns the cost of fuel and the purchasing greenhouse gas rights.

Recognising that we are highly dependent on imported fossil fuels, with the consequence that we are also exposed to any fluctuations on international markets, we believe that an important measure is to increase production from RES, especially photovoltaic systems. In addition, EAC production and spply should be allowed as soon as possible to sign contracts with independent suppliers and independent producers, respectively, as this will lead to a reduction in consumer prices.

Qualified staff

Memorable moments?

Despite my brief time at the organisation, I definitely distinguish the daily effort that every person of the Organisation makes so that we safeguard have, as seamlessly as possible, the good of electricity.

Something as seemingly simple as flicking a switch to turn on a light or power an appliance, involves an incredible degree of complexity.

Action time for Authority staff.

The production, transmission, distribution and supply of electricity involves highly complex processes and infrastructure structures that are supported by highly qualified personnel. So that we can all enjoy electricity, some other fellow citizens give us their own ‘responsible energy’ every day. This is a valuable intangible asset of the EAC and the region.

A public organization of Cypriots

The EAC, as noted by the Authority, “is a public law organisation that belongs to all Cypriot citizens and acts within the framework of the law that governs its operation, faithfully following the rules of good administration.

The responsibility of the Authority, as an electricity provider, extends far beyond its main mission, a reliable supply of energy with quality services to its approximately 600,000 customers.

It also has the responsibility of building a better future for everyone by implementing good practices in the main areas of administration in full compliance with the new Public Administration Code, which aims at good administration and maximising the value of the services provided.”

The Cyprus Electricity Authority was established on October 30, 1952. The Authority’s first offices in Nicosia (Old Electric).

 

The first electricity generating station in Cyprus was built in Dhekelia.

 

They add that “the continuous and intensive efforts of the organisation’s administration and Management, in the context of its strategy for the design and implementation of an efficient and human-centered management system based on international standards of quality, safety & health, environment, risk management and business continuity, ensures continuous improvement and compliance with complex regulatory and supervisory requirements.

System supervision by the committees of the Board of Directors and the multiple systems of control and review of the results, ensure the optimal efficiency and fulfillment of the strategic aims and objectives of the Organisation on a continuous basis.

The EAC’s goal is to keep upgrading services to customers, remaining a financially sound and active business.

With the capacity of responding to the challenges of the times, through the implementation of its investment and development planning, the EAC is ‘the solid energy pillar that Cyprus needs’, management notes.

The struggle following the deadly explosion

What is the most important moment of this long journey?

Well, there’s many of them. Perhaps the most important is the explosion at the naval base in Mari, in July 2011, which brought terrible pain to Cyprus, also completely destroying the Vassiliko power station.

The Vassiliko station was destroyed by deadly explosion at Mari.

This was an historic milestone for the EAC that redefined its relationship with Cypriot society.

It marked the starting point of a titanic struggle and an unprecedented effort by our people to restore the electricity supply as soon as possible and to re-operate the power station. It took only two years to fully rebuild the station and, by the summer of 2013, all of its generating units were in commercial operation.

In just two years, the EAC managed to rebuild Vassiliko.

Another moment of special importance is the one approaching next autumn and it is none other than the opening of the electricity market in Cyprus.

The EAC now has to face the competition, a reality opening up a new development challenge for the organisation.

Close to society since establishment

How much importance does the organization attach to corporate social responsibility?

EAC, is a public benefit organisation that essentially belongs to society, so beyond supplying electricity and within the framework of its Corporate Social Responsibility, it supports programs and actions with a positive social impact.

They include activities in Health, Environment, Safety, Energy, Society, Corporate Governance, Education, Sports and Culture.

The EAC has been close to society since establishment. A photo from the annual Christmas campaign “Give Light to a Life”, co-organized with the Cyprus Cancer Society.

For the EAC, Corporate Social Responsibility is a pillar of its ESG policy (environment, society, governance) and is included in its daily management, activities, philosophy and development strategy.

It takes into account ethical, social, economic and environmental aspects, as well as the relationship with its employees , suppliers and customers, as well as those directly or indirectly affected by its activities.

Address.

Photi Pitta 15, 1065 Nicosia
Τ.Θ. 21413, 1508 Nicosia

Telephone.

+357-22202243 / 22202343