A historic step toward strengthening and modernizing Cyprus’s electricity system, mobilizing both government planning and the private sector, is the recent decision to develop central storage systems by the Cyprus Transmission System Operator (CTSO), alongside corresponding private initiatives, a source from the CTSO told CNA.

“It can be said that these systems are a key part of our country’s infrastructure, just like hospitals, ports, and airports, because their existence ensures the reliable operation of these infrastructures,” the source emphasized.

At the same time, the same source noted that the Hellenic Electricity Transmission System Operator (HETS) has already issued final and preliminary connection terms to private investors for stand-alone storage systems (stand-alone), with a total capacity of over 200 MW and a storage capacity of approximately 500 MWh, as well as final connection terms for private hybrid systems (photovoltaic systems with batteries), with a total capacity of 29 MW and a storage capacity of approximately 100 MWh.

“With these projects, Cyprus is entering a new era of energy security, accelerating the country’s green transition and creating the infrastructure for a greener and more cost-effective electricity system,” he emphasized.

He also noted that the CERA’s involvement does not limit, but rather paves the way for the private sector, as “the prospects for further investment in storage will continue to be attractive.”

Furthermore, he noted that electricity storage is “one of the most critical pieces of the green transition puzzle, especially for an isolated island power system such as Cyprus’s.”

“Without the ability to store energy, the disproportionately high real-time generation from Renewable Energy Sources (RES) relative to consumption—especially during midday hours—is often curtailed,”, he added.

Furthermore, she noted, the system remains vulnerable to fluctuations as it is subject to weather conditions and large, sudden changes in load demand.

Referring specifically to CERA Decision 217/2025 of the CERA, which approved the CTSO’s request to develop and manage privately owned electricity storage facilities, which will be integrated directly into the transmission grid, the source from the CERA told CNA that this approval grants the Operator “the right to develop and operate storage systems as a transitional solution until the physical interconnection of Cyprus’s electricity system with the grids of other countries.”

In this context, he continued, the CTSO recently awarded a contract for the supply and installation of three storage systems, with a total capacity of 120 MW and a storage capacity of 400 MWh.

He noted that the HTSO’s new storage units will operate in the public interest, with the aim of ensuring the safety and reliability of the Transmission System.

Specifically, he stated that the new units are expected to protect the grid from sudden fluctuations in renewable energy generation (e.g., due to cloud cover or changes in wind conditions), will be able to immediately supply power to the grid in the event of an unexpected loss of generation, and will absorb excess energy during periods of RES overproduction (primarily during midday hours from solar PV) and will feed it back into the system (discharge) in the afternoon, helping to meet demand during peak hours and reducing Green Energy curtailments.

In addition, he noted that the units will be installed at geographically selected transmission substations in three different provinces to provide optimal and immediate support for the system’s needs.

He also noted that the introduction of advanced central storage technologies into the Transmission System enables the Hellenic Transmission System Operator (HTSO) to gain significant experience and expertise in the operation, management, and utilization of such systems, particularly for the provision of ancillary services and the improvement of system security and stability.

The operational framework for the units is currently being developed

However, the same source told CNA that the operational framework for these storage units is currently being developed, with the fundamental principle being to ensure the sound functioning of the competitive electricity market.

“The operation of the CEMT’s storage systems will be conducted in a manner that gives priority to private storage facilities operating commercially in the market,” he clarified.

He noted that, in accordance with the law, the procedure for the gradual phasing out of this exemption will be determined by notification from the competent minister.

Finally, he stated that the timeline will provide for the gradual transfer of the CERA’s facilities to third parties through an open, transparent, and non-discriminatory tender process, once Cyprus’s electrical interconnection with other member states is completed.

Source: CNA