The Cyprus Energy Regulatory Authority (CERA) has approved a major energy storage project totaling 120 megawatts (MW), aimed at improving grid stability and securing the island’s electricity supply. The move marks a significant milestone in the modernization of Cyprus’s energy infrastructure.
The project, to be developed and operated by the Cyprus Transmission System Operator (TSOC), will include three battery storage installations: a 40MW/80MWh facility at the Athalassa substation, and two larger 40MW/160MWh systems located at the Free Industrial Zone near Kalo Chorio, Larnaca, and the Anatoliko substation in Paphos.
This approval follows a parliamentary decision to align national legislation with EU electricity market directives. Under a special EU derogation granted to Cyprus, TSOC is permitted to install and manage these energy storage systems without going through the typical competitive procurement process.
CERA’s approval comes with specific conditions: TSOC must retain ownership of the storage systems and complete installation and grid integration by June 2026. Additionally, only substation-related projects and connection infrastructure can be included in the country’s Ten-Year Transmission System Development Programme.
To ensure fair market access, CERA emphasized that privately operated storage facilities will receive priority to provide services to the TSOC once they become operational.
The regulator stressed that the battery systems are urgently needed in the public interest to ensure grid security, reliable energy supply, and to protect renewable energy consumers from potential power curtailments. These provisions are in line with European Directive 2024/1711 and incorporated into Cypriot law through Amendment Act 56(I)/2025.
The next step requires Energy Minister Georgios Papanastasiou to issue an official notification in the government gazette. This will enable TSOC to begin procurement procedures for the three storage facilities. The notification must also outline a roadmap for phasing out the derogation and eventually transferring the systems to third-party operators through open tenders, once Cyprus connects to other EU countries’ grids via interconnectors.
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