Cyprus TSO favored in national battery storage tender

Pressed by the lack of electricity system flexibility, Cyprus is rushing to deploy battery storage facilities under indirect state control. Private companies are complaining that Transmission System Operator Cyprus (TSOC) is favored at a current tender for three units of 40 MW each.

EMA, the electricity market association of private companies has been trying to hinder or delay the installation of a central battery storage system within the network of state-owned Electricity Authority of Cyprus (EAC), but to no avail, philenews reported.

After several complaints, including to the European Commission, the group urged the Cyprus Energy Regulatory Authority (CERA) to reconsider the approval that it issued in June to Transmission System Operator Cyprus (TSOC). A tender is underway for the same three facilities with 400 MWh in total capacity, to be installed at three EAC’s substations.

The one in Athalassa would have 40 MW in operating power and a duration of two hours, translating to 80 MWh. The battery energy storage systems (BESS) at the substations in Anatoliko in Paphos (Pafos) and the free industrial zone in Larnaca would each have 40 MW and 160 MWh.

EU gave green light for rushed procedure

EAC owns TSOC, which has raised the issue of transparency. However, the government has obtained a derogation from the European Commission. In its request, it cited the delays in interconnecting with the European electricity grid, lack of energy storage and the instability affecting the island country’s electricity system.

The project for centralized BESS capacities on the transmission grid is an emergency measure to prevent blackouts and curtailments

The Great Sea Interconnector project for a subsea cable to Crete is late and even jeopardized due to breach deadlines. The Cypriot grid is constantly strained as it needs flexibility systems, while a huge part of solar and wind power is curtailed.

There were several major rolling outages and load-shedding events this summer on the island. One last week occurred amid a breakdown in one of the fuel oil–fired power plants, which the country relies on for baseload energy. Two new units of 400 MW overall are designed to use gas, but there is still no gas. Namely, the project for a liquefied natural gas (LNG) terminal is suffering delays as well.

BESS tender is worth EUR 41 million excluding VAT

As for the tender, applications last until September 19. The cost is estimated at EUR 41 million altogether, excluding value-added tax. The BESS facilities need to operate at least 128 months.

AEC said in the documentation that it expects the European Regional Development Fund (ERDF) to support the investment. Earlier reports suggest that EUR 30 million is available.

The government said the three battery energy storage systems are planned to be commissioned by June. EAC’s two power stations are also planned to be equipped with BESS units, it added.

In addition, the government is funding battery storage projects for renewable electricity plants, prosumers and even the army.

Power market liberalization in one month

Notably, Cyprus is liberalizing its power market on September 15 for independent producers and retail suppliers. The change is scheduled to come fully into force on October 1, the first day for transactions.

In a separate article, the same media outlet stressed that the country’s energy policy in the electricity segment is inadequate, uncoordinated and fragmented, with the cost of wrong decisions being passed on to consumers.