THE ELECTRICITY Authority (EAC) yesterday denied it had wasted £11 million on a coal-fired boiler for its Vassiliko power station, saying it had been purchased in an effort to protect electricity production.
The denial came after Commerce Minister Nicos Rolandis told yesterday’s Politis the boiler was "useless".
Rolandis said the EAC "essentially threw away the money because the facilities will not be used and so are useless."
The minister said he had been informed about the blunder last year and had enquired how it had come about.
Rolandis told Politis the answer he had received was that "there had been thoughts on having a dual-firing station."
The EAC yesterday defended its decision to buy the boiler: "The Authority’s decision to install dual-firing boilers was taken on December 14 1993 and was announced at a news conference on December 17 1993. The relevant Minister, the Council of Ministers and the House of Representatives were informed about the issue and approved the necessary EAC budget."
It said the decision had been based on "serious financial and environmental reasons as well as a national strategy on fuel."
The statement also quoted a speech by the EAC’s then board president, which said that while oil was the preferred electricity generating substance of the time, Cyprus should not become prisoner to only one fuel.
The EAC added that the current high level of oil prices indicated the need for dual-firing stations and "confirm the seriousness with which the EAC and the government face the issue."
The authority added many countries still preferred to use coal, and that this trend did not seem likely to change, especially in the light of high oil prices.
Rolandis had told Politis that using coal to produce electricity would cost an additional £15-20 million to transport the coal to the station and to modify the plant to take advantage of the new fuel.
Politis reported these preparations would entail making the area’s harbour deeper, building storage houses for the material and purchasing coal-grinding machinery.
"It seems that burning coal is not feasible," Rolandis said. "Today coal is used mostly by countries that produce it. In addition to everything else, burning coal also causes many environmental problems."
The Vassiliko plant on the outskirts of Limassol uses oil to produce electricity.