The government is considering allocating approximately €30 million to the Electricity Authority (EAC) to strengthen electricity storage systems at three EAC substations, sources told Phileleftheros.
Under legislation approved several weeks ago, the independent Cyprus Transmission System Operator (TSO) will manage central storage facilities, with the primary objective of ensuring balanced and secure operation of the electrical system and preventing power outages during instability or significant fluctuations in production and demand.
The €30 million grant, if finalised, will come from the Just Transition Fund (European Union funds), sources said.
According to the Directorate-General for Development’s website, the Just Transition Fund represents a new EU financing instrument aimed at supporting fair transition to a climate-neutral economy by assisting regions most affected by the shift toward climate neutrality, thereby preventing increased regional disparities.
Cyprus has been allocated €101.1 million from the Just Transition Fund for the 2021-2027 programming period, to be utilised through the “THALIA 2021-2027” Cohesion Policy Programme.
With tenders for installing storage facilities at three EAC substations not yet announced, the estimated total cost and the percentage to be covered by the €30 million grant remain unclear. The funding aims to reduce the ultimate financial burden on electricity consumers.
The Electricity Authority of Cyprus has also initiated a separate process to install electricity storage batteries in Dhekelia, with a capacity of 160 megawatt-hours. This infrastructure, however, will participate in the competitive electricity market, unlike the central storage that will be managed by the TSO.
Read more:
