Cyprus activates emergency clause to address potential 2030 electricity supply shortfall
Cyprus has activated a special legal clause to enable emergency measures aimed at preventing a potential electricity supply shortage by 2030. The Energy Ministry invoked Article 34 of the Regulating the Electricity Market Law, allowing for a capacity mechanism to ensure the country meets its future power needs. This move follows warnings from the energy regulator Cera about a potential shortfall of approximately 720 megawatts due to planned decommissioning of conventional power turbines that fail to meet EU environmental standards.
The capacity mechanism, if implemented, will involve inviting bids for additional capacity from various energy technologies, including renewables and conventional sources. This system is designed as a market-based solution to guarantee available capacity and avoid blackouts during periods of high demand or insufficient renewable generation. However, the implementation incurs costs that will ultimately be passed on to consumers.
Lawmakers were briefed on the situation, with calls for clear plans and timetables to address the looming gap. The capacity mechanism is pending a ministerial decree and European Commission approval, with the government currently consulting relevant stakeholders to finalize the process.
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