Filenews 20 June 2025 - by Chrysanthos Manolis
A very important decision for the smooth and safe operation of the electricity system of Cyprus was taken on Wednesday 18/6/25 by the Energy Regulatory Authority of Cyprus (CERA), approving the request of the Cyprus Transmission System Operator (TSO) to proceed with the development and management of electricity storage facilities, integrated into the electricity grid.
The request of the independent Transmission Operator for the installation and utilization of storage systems was submitted after the Parliament voted on a harmonizing bill submitted by the Government for harmonization with an EU Directive on electricity matters. The Directive also includes a derogation granted to the Republic of Cyprus, at the request of the Minister of Energy, in order to enable the Operator to install the batteries in the grid and use them for the security of the system, in order to serve the public interest, without the tender procedures provided for by the EU acquis.
Where will the stores go
With its decision, CERA allows the Transmission System Operator to own, develop, manage and operate energy storage facilities, without following an open, transparent and non-discriminatory procurement process.
By way of illustration, CERA states that the approval is provided for the installation:
- a storage system at the "Athalassa" substation, with an output capacity of 40MW and a storage capacity of 80MWh,
- a storage system at the "Free Industrial Zone" substation (near Kalo Chorio, Larnaca), with an output capacity of 40MW and a storage capacity of 160MWh, and
- a storage system at the "Anatoliko" substation (Paphos), with an output capacity of 40MW and a storage capacity of 160MWh.
The conditions set by CERA
CERA's decision contains the following conditions to the TSO:
- Ownership of the storage systems will be held by the TSO,
- In relation to the implementation of the storage facilities, only the projects related to the substation and the equipment for their connection to the transmission system will be included in the Ten-Year Transmission System Development Program.
- The implementation and connection of the storage systems will be completed by June 2026,
- The activation of (private) storage facilities in the electricity market will ensure (ed. by the TSO) that priority will be given to them for the provision of the relevant services to the TSO.
What he took into account
As CERA explains in its decision, it took into account the following in order to give the green light to the Operator:
- The necessity for the immediate installation of storage for the needs of the electricity system in the public interest, especially for the safety, reliable operation and economic operation of the electricity system, as well as for the protection of consumers – self-producers of energy from RES from energy cuts,
- The fact that with the derogation granted to Cyprus by the European Parliament and the Council, with the European Directive (EU) 2024/1711 and its adoption by the House of Representatives with its incorporation into the national legislation with the amending Law L.56(I)/2025, the necessity of the immediate storage facility by the TSO, is presumed,
- The fact that, in addition to the storage facility by the TSO, there is sufficient scope for the installation of further storage systems, by investors, for commercial purposes, as well as given that storage by the TSO will operate in such a way as to give priority to storage facilities operating on the market for the provision of the required services to the TSO;
- The fact that the TSO's request for the inclusion of the entire storage system in the Ten-Year Transmission System Development Plan is not accepted, because the TSO must have ownership of the storage facilities.
The announcement by the minister follows
According to the harmonization law recently approved by the Parliament, provided that the Cyprus Transmission System Operator secures the approval of CERA (which was done as we mentioned elsewhere on 18/6/25), the Minister of Energy, with a notification published in the Official Gazette of the Republic, may allow the TSO, until the transmission system in Cyprus is connected to the transmission systems of other Member States through interconnection lines, own, develop, manage and operate energy storage facilities, without following an open, transparent and non-discriminatory procurement process.
Therefore, the decree – notification by Minister George Papanastasiou should now be issued, in order for the Operator to proceed with the issuance of the tender for the supply and installation of the three storage systems.
The Minister's notification should also specify the procedure for the gradual abolition of the derogation, with a timetable for the gradual transfer of energy storage facilities from the TSO to third parties, through an open, transparent and non-discriminatory tendering process carried out by the TSO.
