The Electricity Authority of Cyprus (EAC) has reached an agreement with German industrial giant Siemens for the purchase of three diesel generators to upgrade the Dhekeleia power station, according to information obtained by Phileleftheros.
Under the deal, EAC will acquire three industrial-type generators, each rated at 27 megawatts and running on diesel fuel.
Siemens will deliver the first generator in spring 2028, the second during summer 2028, and the third in early 2029. The agreement covers delivery only — installation and maintenance will require a separate tender, which EAC will need to launch promptly so that contractors are ready to begin work as soon as each unit arrives.
The deal was reached through direct negotiations between EAC management and Siemens in recent weeks, following a preliminary agreement to purchase the generators through Greek firm TERNA.
The agreement rescues an upgrade project that had appeared close to collapse. Until February, hopes of finalising a deal — whether through direct generator purchase or via an external installation contractor — had nearly evaporated.
Earlier in the year, bidders in a running tender had been unable to guarantee delivery and operation before 2030, owing to intense global demand from power producers and other industries.
The delivery timeline is significant. Under a commitment made by the Republic of Cyprus to the European Commission, the six ageing and polluting steam-electric units at Dhekeleia — with a combined nominal capacity of up to 360 megawatts — must cease production by the end of 2029.
The new generators will partially offset that loss, and their installation before the deadline was considered a priority for both EAC and the government.
EAC also intends to move quickly on preparatory procedures for a tender covering the supply and installation of a modern combined-cycle generating unit at Dhekeleia, which is earmarked as the second pillar of Cyprus’s electricity production and supply system, according to unconfirmed information obtained by Phileleftheros.
Separately, EAC’s sixth combined-cycle unit at Vasiliko, rated at 160 megawatts, remains on standby. Though complete, it cannot be brought into operation until natural gas is introduced to Cyprus.