Parliament unanimously approved legislation on Thursday that creates the framework for electricity storage at cost-reflective prices under the responsibility of the Transmission System Operator (TSOC).
The law, described as long overdue, was made possible after Energy Minister George Papanastasiou convinced the European Commission and his EU counterparts to grant a derogation for Cyprus’s isolated electricity system.
This exemption allows the country to bypass standard tender procedures, enabling the Transmission System Operator to install and manage storage systems in collaboration with the Electricity Authority of Cyprus (EAC).
Six MPs from AKEL, DIKO, and DEPA parties submitted amendments to restore the bill to its original form after House Energy Committee Chairman Kyriakos Hadjiyiannis had made significant unauthorised changes to the legislation.
The most controversial alteration introduced by Hadjiyiannis required the Cyprus Energy Regulatory Authority (CERA) to conduct a study before granting permission for the Transmission System Operator to establish centralised electricity storage – a requirement not present in the original EU directive.
MPs viewed this addition as potentially delaying the urgent implementation of storage systems needed to balance the grid and reduce energy curtailment from domestic and commercial photovoltaic installations.
Hadjiyiannis had also added provisions giving CERA discretionary powers not included in the government’s bill, including authority to decide whether the Transmission System Operator would receive reasonable compensation for future transfer of energy storage facilities to third parties.
These amendments were overwhelmingly rejected in parliament, with only Hadjiyiannis himself and DISY MP Nikos Sykas voting in support of the changes.
Following approval, the Transmission System Operator is expected to promptly apply to CERA for installation of storage systems at EAC substations. The construction process is estimated to take 12-18 months under favourable conditions.
The storage facilities will allow the Operator to store energy from domestic or commercial photovoltaic and wind systems, using it during electricity shortages or for system stabilisation, significantly reducing renewable energy curtailment.
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