Cyprus Mail 25 June 2023 - by Chrysanthos Manoli
Serious side effects of not launching a grant scheme for energy storage infrastructure
The Cypriot energy environment, public and private, has fully realized that without the rapid installation of electricity storage infrastructure (but also without the implementation of the interconnection with the networks of Greece or Israel) the plans for the substantial penetration of renewable energy sources in the electricity capacity cannot be implemented, the relevant obligations of the country towards the EU cannot be met and cannot be terminated (nor can they be terminated, nor even reduce) the cuts of green energy from the electricity grid.
We are informed that great interest has already been expressed and continues to be expressed by private producers or potential producers of electricity from RES or suppliers, for the installation of storage systems (batteries) in existing RES parks or in parks that will be built soon. So far, about 30 permits have been issued for storage infrastructure installation, for a total capacity close to 100 megawatts. The submission of applications continues and it is estimated that both the total number of permits and the total storage capacity will gradually increase.
However, other information from Phileleftheros indicates that for the time being none of the permits have progressed and especially have not been implemented. Obviously, storage licensees are waiting for the announcement by the Ministry of Energy of a subsidy plan for the storage facility, in order to carry out their next steps, despite the fact that existing producers suffer significant revenue losses from the extended cut-off of production by the Transmission System Operator and the Distribution Operator, for reasons of protection of the electricity system in periods when electricity consumption does not exceed 500-600 megawatt.
Due to the rise in temperature in recent weeks, production cuts from photovoltaic and wind systems have been greatly reduced, as power consumption has increased. However, cut-offs will return and there will be more (as the installation of renewable energy systems continues to increase) in the autumn.
The long delay by the Ministry of Energy in announcing a subsidy scheme for the installation of energy storage infrastructure also leads to a delay in the implementation of private sector plans in relation to storage and keeps to some extent the share of RES in electricity consumption. The Ministry of Energy is awaiting the approval of the EU, which will co-finance the project, in order to proceed with the announcement of the grants.
At the same time, the Ministry of Energy is in contact with competent services and authorities in order to decide on a framework for the legal operation of a central storage system, under the management of the Transmission Operator, in order to eliminate or reduce security problems in the system.
In addition, CERA consulted on a new draft regulatory decision on the transitional competition regulation, which, inter alia, provides that producers "who have the technical capacity to plan and flexibly their production (i.e. have energy storage capabilities) can also be included in the transitional arrangement, so as to avoid the loss of energy that occurs when their production is limited by mandates of the TSO and/or DSO for for the proper functioning of the system, as a result of the dispersion of production and due to the small and isolated and therefore vulnerable electricity system of Cyprus".
