Major €180m upgrade planned for Dhekelia power station

Cyprus is taking a major step toward a cleaner and more secure energy future with a €180 million upgrade of the Dhekelia power station. The investment focuses on replacing outdated and highly polluting equipment with modern, flexible technology that can better support renewable energy and ensure stable electricity supply.

The plan includes installing new gas turbine units and a large battery storage system, allowing the power grid to operate more efficiently and absorb a higher share of renewable energy. While the new turbines will initially run on diesel, they are designed to switch to natural gas once it becomes available, significantly cutting emissions. Advanced systems will also be used to reduce harmful exhaust gases.

A key feature of the upgrade is a high-capacity battery system that will help balance electricity supply and demand, improving grid stability as more solar and other renewable sources come online. The project is currently undergoing environmental review, with public consultation open until early 2026.

Funded through internal resources and European support, the project avoids adding to public debt and is expected to contribute to lower electricity costs in the long term. Once completed, the modernisation will allow older units—some dating back decades—to be gradually phased out, reducing the station’s carbon footprint while maintaining safety standards and protecting the surrounding area.