Nine critical energy projects, mostly involving the Electricity Authority of Cyprus (EAC) and the transmission system, are expected to be completed in 2027, Energy Minister Michael Damianos told parliament’s energy committee. The projects will help lift constraints on the grid and improve the adequacy of electricity supply, and include the central energy storage systems of the Transmission System Operator of Cyprus (TSOC).
One transmission project risks delay, and the contractor for the storage systems has asked for a four-month extension.
Damianos briefed the committee on progress with critical transmission projects to lift restrictions caused by high short-circuit currents. Based on EAC data, six of the seven critical projects are expected to be completed next year, he said.
They include a new 132 kV ‘West Vasilikos’ transmission substation, an overhead line linking Vasilikos, Mari and Kofinou, and a new Kofinou–Alambra interconnection. The Kofinou and Strovolos transmission substations will be upgraded, and the Mari substation converted from open to enclosed type.
The seventh, a new ‘Kostas Petrou’ interconnection in Strovolos, risks delay because of road works to upgrade Tseriou Avenue, according to the ministry’s briefing note.
Central storage systems
The TSOC is also pressing ahead with three central storage systems with a total power of 120 MW and capacity of 400 MWh, which are expected to be completed in 2027. The take-over certificate is scheduled to be issued on June 29, 2027.
However, the contractor has requested a four-month extension, which the TSOC is examining, the minister said. If it is approved, completion would move to around the end of October 2027.
Faster connections
The connection of storage and hybrid systems is also being accelerated. In July, a ministerial notice set the maturity criteria that decide the order of priority for connections. They give the highest score to renewable energy units combined with storage whose discharge capability is at least 50 per cent of the unit’s power.
On the transmission system, according to the TSOC, final connection terms have been issued for five storage systems with indirect connection, with a total power of 60 MW and capacity of 190 MWh. Preliminary terms have been issued for one system with indirect connection (16 MW, 100 MWh) and for two systems with direct connection (139 MW, 280 MWh in total).
Preliminary terms are also being prepared for new solar parks with a power of 112.4 MW. They include two storage systems with a power of 60 MW and capacity of 120 MWh.
On the distribution system, final connection terms have been issued to add storage to 16 existing renewable energy systems, and preliminary terms for eight new renewable systems with built-in storage. A further 92 applications to add storage to existing renewable systems and 250 new applications for renewable systems with built-in storage are being examined.
Dhekelia funding faces state aid check
At the Dhekelia power station, two new 80 MW generating units are planned by the end of 2029, alongside the installation of storage at the station. The first unit is scheduled for March 2029 and the second for December 2029.
The EAC has asked for the units to be funded through public service obligations, a decision the minister will take after consulting the Cyprus Energy Regulatory Authority (CERA). On September 23, the EAC sent the ministry the results of a study by a consultancy firm. According to the EAC, the study concludes that the services the new units would provide relate to the security of supply, power adequacy and reliability of the Cyprus electricity system, and could qualify as services of general economic interest, provided there is an appropriate act of entrustment.
Once it has examined the study and received further information, the ministry will forward the material to the Commissioner for State Aid Control to determine whether it complies with state aid rules.
