Nicosia: A distributed energy storage system with a capacity of 120 MW is set to be operational by June 2026, as announced by George Papanastasiou, Minister of Energy, Commerce and Industry. This announcement was made during the presentation of the Cyprus Electricity Authority’s (EAC) 2024 annual report. The system will operate transparently under the ‘Policy for Management and Participation in the Competitive Electricity Market.’
According to Cyprus News Agency, the Cyprus Transmission System Operator estimates that the country will need at least 600 MW of storage capacity by 2030. The minister also highlighted the challenge of energy poverty, which in 2023 affected 66,700 households, or 17.5% of all households in Cyprus, an increase from 50,290 households in 2022. This is compared to an EU average of 10.6% based on household heating capabilities. In Cyprus, 19.3% of households reported difficulties in heating their homes.
The Energy Minister emphasized the government’s collaboration with the EAC to overcome challenges in the electricity and energy sectors. The focus is on ensuring adequate electricity supply, safe system operations, reducing electricity prices, fostering green growth, and enhancing the country’s competitiveness.
Papanastasiou also addressed challenges such as grid upgrades and storage system installations to increase renewable energy penetration and reduce curtailments. Other initiatives include the EAC’s power generation development program, the Dhekelia Power Station upgrade, and new renewable energy systems, alongside the competitive electricity market’s operation.
The EAC’s commitment to modernization, such as upgrading and digitizing transmission and distribution networks, was praised by the Minister. This includes the Vasilikos power station upgrade and the installation of a new natural gas-powered unit.
EAC Chairman George Petrou highlighted the authority’s strategic priorities: tackling climate change, providing affordable electricity, ensuring energy security, and high-quality customer service. He noted that energy storage is vital for Cyprus’s stability, cost reduction, and green energy utilization, with investments in sustainability, energy efficiency, and technology.
Petrou mentioned the challenges of exporting surplus renewable energy and the role of storage as a balancing mechanism. He spoke about large-scale projects and storage systems at transmission substations being implemented by the EAC and Transmission System Operator.
The EAC is also focused on rapidly increasing photovoltaic park operations, with recent additions of solar parks in Akrotiri, Limassol (12 MW), and Achera, Nicosia (8 MW). These parks reduce electricity costs for consumers, and additional solar projects are in the licensing process to boost renewables in the energy mix.
To secure future electricity generation capacity, the EAC is involved in major national infrastructure projects, including the LNG import terminal for energy transition and the Vasilikos desalination plant for addressing water scarcity.
Lastly, electric mobility is a priority for the EAC. The e-charge service is expanding with a network of fast and semi-fast chargers, currently operating 35 dual stations, including four fast chargers, with plans to add 40 more by 2026, covering mountainous areas.