The Electricity Authority of Cyprus (EAC) is moving forward with a massive €180 million investment to modernise the Dhekelia power station, marking a critical step for the island’s energy security and green transition.
The ambitious project involves installing new production units and advanced battery energy storage systems (BESS) to replace aging, polluting steam turbines. An Environmental Impact Assessment is currently open for public consultation until 28 February 2026.
The expansion includes a new production unit featuring two to three Open Cycle Gas Turbines (OCGT) with a total capacity of 60-115 MWe. These flexible units will initially run on diesel but are designed to switch to natural gas as soon as it becomes available.
A key component of the upgrade is a 160 MWh lithium-iron-phosphate battery storage system. This technology will provide the necessary grid stability to allow for greater penetration of Renewable Energy Sources (RES). To manage emissions, the new units will be fitted with Selective Catalytic Reduction (SCR) systems to strip nitrogen oxides from exhaust gases.
Funding for the project will come from the EAC’s own reserves, supported by grants from the European Investment Bank (EIB). This strategic financing allows for infrastructure upgrades without increasing public debt and is expected to eventually lower electricity bills for households and businesses.
The Dhekelia station, which currently generates about 34.5% of the EAC’s total electricity, has been operational since 1953. The current “Dhekelia B” units, installed in the 1980s, rely on heavy fuel oil. The transition to the new OCGT units will allow for the gradual decommissioning of these older plants, significantly reducing the facility’s carbon footprint.
The study confirms that the project is fully compatible with the area’s industrial character and adheres to strict SEVESO safety regulations. Any potential impact from a technical accident would be contained within the station’s fenced perimeter.