EAC declares PEC’s 260 MW private power plant pumping station near Vasilikos illegal

The Electricity Authority of Cyprus (EAC) has rejected allegations that it is blocking the launch of a private power plant near its Vasilikos complex. In a statement issued on 27 August, the EAC insisted that the competitor’s key facility does not have the necessary permits.

The facility in question belongs to PEC (Power Energy Cyprus) Ltd, part of the Cyfield group, and has a nominal capacity of 260 MW. It has been completed but is not yet operational. This week, Cypriot media reported that the EAC was deliberately stifling competition, while the island lacks sufficient generation capacity.

According to PEC, one issue remains unresolved: a pumping station that is supposed to discharge into the sea the water used to cool the turbines. The discharge pipes run across a plot of state-owned land leased by the EAC and reach the shore near the point where the EAC itself draws water to cool the Vasilikos turbines. The lease on this plot expires in approximately two years.

The EAC said that the pumping station has neither zoning nor environmental approval, and that PEC had not obtained the EAC’s consent to locate the facility on the leased plot. The company therefore considers both the pumping station and the discharge pipes illegal. Its second objection is that the discharged water is hot and that its entry into the water-intake area would disrupt the operation of Vasilikos.

“The EAC complies with all procedures and rules provided for by law and obtains all necessary permits when implementing any project. Others should do the same,” the statement said. The company stressed that it “has never obstructed and does not intend to obstruct healthy competition”, but would not tolerate being “subjected to unfounded accusations” and reserved the right to take legal action.

The dispute has been ongoing for some time: previously, Cyprus’s auditor general pointed to irregularities in the construction of the pumping station. The EAC believes that the facility should be dismantled, while the company cannot sublease the plot because the land belongs to the state. PEC objects that the plot is nevertheless lying unused.