Filenews 15 July 2023 - by Chrysanthos Manoli
With a long delay, compared to the leaps made and continue to be made by other EU member states, the Republic is attempting its first steps towards the construction of a central storage system, which will support the mission of the Cyprus Transmission System Operator (TSO) for system security, full utilization of green energy production and uninterrupted electricity supply.
At the same time, the Ministry of Energy announced yesterday the launch of a public consultation to promote the subsidy of hybrid storage systems, i.e. batteries that will be installed in existing and new RES parks, for better production management.
The fact that the Government is attempting to enter the very early stages of a process that is envisaged complex, does not allow optimism that storage, especially the central system that is of huge importance for the country's electricity system, will be achieved soon. However, the launch of the process is something welcomed by all actors in the energy sector in Cyprus, although some hold views on different options and will obviously express them in the public consultation that has been launched.
EAC and TSOC
According to the General Policy Framework for storage, announced yesterday by the Ministry of Energy, the Government chooses at this stage "the installation of centralized energy storage systems by the state, owned by the Electricity Authority of Cyprus (Network Business Unit) and managed by the Cyprus Transmission System Operator". The total amount allocated for these systems will be at least €40 million, the statement said, suggesting a system for a capacity of about 35-40 megawatts. The central system will allow the Operator to store excess generation from photovoltaics and wind, during periods when power consumption is limited, and recover it when needs arise in the system. Thus, production from RES that is not exploited for some months of the year will be limited to some extent, and the problems of consumer loss in cases of sudden fluctuations in production and consumption will be significantly reduced.
The Ministry of Energy says that the completion of the project, after the final decision has been made and all permits have been secured, is expected to take place within a period of 18 to 24 months for battery systems, while in case of choosing another storage technology, the implementation time is expected to be longer than 24 months.
Approval by the European Commission is necessary for the implementation of the central storage system by EAC and TSO to proceed (a request for derogation has already been submitted), since the harmonizing law gives clear priority to the "players" of the competitive market through expression of interest and not to the TSO or EAC through assignment.
RES with storage
The General Policy Framework also includes the implementation of an Aid Scheme (sponsorship) for RES projects with energy storage capacity, which is subject to public consultation. The budget of the project will range from €10 million to €40 million, depending on the savings from the Just Transition Fund, the revenues from the Emissions Fund, and the RES and EE Fund (following the approval of the budget for 2024).
The first phase of the Public Consultation will run until 26/07/2023 at 23:59. For more information, please contact gpartasides@meci.gov.cy and energyservice@meci.gov.cy.
The final Plan will be submitted for approval by the Office of the Commissioner for State Aid Control and/or the Directorate-General for Competition of the European Commission, in accordance with EU law and after the final public consultation.