in-cyprus 24 February 2025 - by Chrysanthos Manoli
Cyprus’s cabinet has approved draft legislation allowing the national grid operator to develop electricity storage facilities, a move aimed at preventing waste of renewable energy during low-demand periods.
The amendment to electricity market regulations, approved on February 12, follows successful negotiations with the European Union for a derogation that considers Cyprus’s unique power system characteristics.
The Cyprus Transmission System Operator will be permitted to develop and manage storage units to address imbalances between supply and demand, with current renewable energy capacity of 957MW often exceeding average daily demand of 600MW on weekdays.
The legislation also introduces consumer-focused measures including energy sharing schemes, multiple supply contracts, and protection against disconnections, while allowing fixed-price contracts to shield consumers from price fluctuations.
Energy Minister George Papanastasiou secured EU approval for the derogation after previous attempts to implement storage solutions were deemed incompatible with European regulations.
