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Friday, July 19, 2024

SAH: The ADIME design requirements for electrical interconnection are disastrous

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ΣΑΗ: Καταστρ οικιααισστοσει ασμΗΜΕ ηλεκτρικor διασν δεσ&eta?

The Cyprus Electricity Market Association (SAH) states in a statement that it is in favor of the electricity interconnection of Cyprus – Europe, however, in a way that will also ensure uninterrupted supply, strengthen the competitive market and offer benefits to consumers and the economy of Cyprus, offering geopolitical value to our country.

In his announcement the SAH notes that none of the above criteria are met, however, as can be concluded from the presentation of the conclusions of the Cost Benefit Study so far by ADMIE (Implementing Agency of the Great Sea Interconnector) held on 5/6/2024 at OEB, in the presence business world and professionals in the energy sector.

According to SAH, in the context of the above meeting, it was not possible for the ADMIE, and the group of experts who accompanied him, to clearly explain the essential assumptions of the Study and to a greater extent they hide risks, which could potentially make an unsustainable solution this project for Cyprus.

The Electricity Market Association expresses strong concern and concern about the intentions of ADMIE, a concern that is reinforced, as it states, by the lack of transparency in this direction.

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"If such a design by ADIME for the Great Sea Interconnector is accepted, it will mathematically lead Cyprus to serious energy dead ends and unbearable financial burdens, with catalytic effects for the economy and society of Cyprus. It will lead to a strangulation of the domestic production and supply of electricity (conventional and RES) both by the EAC and by private initiative» notes the Link.

He also emphasizes that the ADMIE design for the Great Sea Interconnector contains many extremely problematic assumptions, both technical and commercial, and that the state must seriously and objectively study the ADMIE design, with the input of independent and impartial experts.

< p>SAH characterizes as exaggerated the report that, with the design proposed, the electrical interconnection with the Great Sea Interconnector, under the technical and commercial conditions set, will bring reductions of up to 30% in the electricity bills of Cypriot consumers. "Ignore the benefits of importing natural gas, which will bring noticeable reductions in the cost of electricity production and a reduction in significant penalties for pollutants, he notes.

He also notes that based on the schedules, the import of natural gas is expected to completed much faster, than’ that the operation of the Great Sea Interconnector.

"It also, among other things, ignores the reduction in production costs from the imminent operation of two additional conventional production units (6th EAC Unit and PEC power station). It ignores the reduction that will be brought about by the further utilization of electricity production from RES» is added.

He also mentions that a condition is set for the constant import of electricity up to 500MW uninterrupted, 24 hours a day, seven days a week, 365 days a year, indicating that it means not a reduction, but an increase in the cost of electricity, since the consumer will pay the cost of all of existing fixed assets, even increased since it will not be amortized with the disposal of their production approximately 8 months of the year, when the consumption is below 500 MW.

“Extremely provocative and unacceptable”, is, according to the SAH and the ADMIE provision-requirement, that the Republic of Cyprus, i.e. the Cypriot consumer (households, trade, industry, agriculture, etc.), must start to is charged for the use of the Great Sea Interconnector from today, while the project will start operating, if there are no delays, in 2030.

"Extremely challenging and destructive for the economy and society of Cyprus, is also the regulatory decision for the Cypriot consumer to pay at least 63%, the construction and operation of the project.» he adds.

SAH states that in fact, the Great Sea Interconnector, as proposed by ADMIE, has as its strategic goal the cost-free service of ADMIE itself and the interests of producers in Greece, so that through the electrical pipeline, it can channel the surplus to Cyprus of electricity production in Greece, where the production potential is constantly increasing.

Additionally, SAH considers the argument that the cost of €2 billion Great Sea Interconnector with the economic, technical and commercial conditions it proposes, will be more economically advantageous than the "alternative" as presented by the solution, for 3 GWh storage infrastructures and indicates that in such a comparison, it should be mentioned that the cost of storage, with today's prices (which are constantly decreasing), will be €0.75 billion.

"Essentially, ADMIE with the proposed design, what he proposes, is to become the main supplier of electricity, from production sources in Greece and convert the production of Cyprus (conventional and RES) into backup to supplement the needs» states.

And he explains that "this means bankruptcy of local production including the EAC, destruction of local investments, derailment of the goals for the green transition, annihilation of the value of the investment of &euro? 700 million for  natural gas terminal and  the main thing: granting the energy sovereignty of the Republic of Cyprus to the hands of ADMIE».

«For Cyprus, what remains is  a calculated additional cost of €120 million annually to ensure Cyprus' energy reserve, which will be added to electricity bills» adds SAH.

For the above reasons, as it concludes, the Electricity Market Association warns that the design as proposed by ADMIE for the Great Sea Interconnector, will have extremely adverse long-term consequences for Cyprus, and notes that the minimum that the state should do immediately is to seriously and objectively study the planning of the ADMIE, with the contribution of independent and impartial experts.

Source: KYPE 

Source: www.sigmalive.com

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