Former Justice Minister Ionas Nicolaou has submitted a proposal for private companies to install 800 megawatts of energy storage capacity at existing solar parks, seeking state subsidies of approximately 45 per cent of eligible costs.
Ionas Nicolaou, representing multiple solar energy firms, sent the detailed proposal to the Minister of Energy and House Energy Committee on Tuesday.
The plan, which could see subsidies increase by 20 per cent for smaller installations, would cost an estimated €135.6 million, with proposed government grants totalling €60 million.
In his submission, Nicolaou criticised the Electricity Authority of Cyprus (EAC) for its plans to install a 40MW storage system at the Dekeleia power station. He argued that “the recent announcement by the EAC… does not serve the principles of transparency and impartiality, nor the goals of significant investments in the development of energy storage systems.”
The proposal includes companies such as Easy Power, Dianary, and Esperia Energy, who wish to participate in both the Transitional Electricity Regulation and the future Competitive Market.
The storage systems would be installed within existing solar parks to protect investor production from seasonal cuts due to oversupply.
Whilst the state utility’s plan aims to reduce overall electricity costs for consumers, particularly households, Nicolaou contends that private investors could install five times more storage capacity for a similar grant amount.
However, these operators would be able to set prices without regulatory restrictions, as is currently the case with renewable energy production in the Transitional Regulation.
The Energy Regulatory Authority (CERA) has already approved numerous private storage applications, though implementation has stalled pending the finalisation of state grant schemes due to various bureaucratic and technical hurdles.
Ionas Nicolaou served as justice minister under Nicos Anastasiades between 2013 and 2019. He resigned on May 2, 2019, after accusations of police failure relating to the investigation of serial killer Nicos Metaxas who murdered seven migrant women and children.
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