The Republic of Cyprus is set to invest EUR 40 million in energy storage projects to tackle the country’s existing lack of storage capacities for excess energy produced by wind and solar power plants. The funding has been secured from the European Union’s Just Transition Fund, aimed at supporting the transition to a greener and more sustainable energy system.
The Minister of Energy, Trade, and Industry, George Papanastasiou, highlighted the importance of energy storage in enhancing the electricity system’s stability. “The stored energy can be utilized for consumption or to provide ancillary services for system operators,” he explained. This move marks a significant step towards mitigating production and consumption issues while fostering a more reliable and efficient energy grid.
To oversee the centralized energy storage facilities, Transmission System Operator Cyprus (TSOC) will take charge. However, compliance with the European Union’s Electricity Directive 2019/944 requires derogations due to internal market rules. The Ministry of Energy, Trade, and Industry will submit a formal request to the European Commission for approval, as confirmed by Minister Papanastasiou.
The completion of the request marks a crucial milestone, and the ministry is optimistic about receiving the necessary approval from the European Commission. Once approved, Cyprus can proceed with its plans to establish a robust centralized energy storage system, ensuring the stability and resilience of its electricity grid.
This initiative comes as Cyprus faces escalating challenges in production and consumption. Earlier last year, TSOC warned of the need for systemic improvements to address the increasing share of renewable energy production in the country. Insufficient storage capacities resulted in rolling outages and disconnections of solar power plants, leading to disruptions in the electricity supply.
Stavros Stavrinos, the Executive Director of TSOC, emphasized the need for further production cuts in the renewables segment to alleviate strain on power plants and the transmission and distribution systems. The investment in energy storage projects will help address these issues, enabling a smoother integration of renewable energy sources into Cyprus’ power grid.
Through this significant investment, Cyprus aims to enhance its energy infrastructure and create a more sustainable future. The EUR 40 million secured from the EU’s Just Transition Fund will pave the way for the development of advanced energy storage technologies, ensuring a stable and reliable electricity supply for the country.
Source: Balkan Green Energy News
