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Cyprus plans to launch a tender in September to support the installation and operation of battery energy storage systems of 150 MW in total, Minister of Energy, Commerce and Industry George Papanastasiou said. He revealed that Tesla and Samsung have expressed interest. It is the only non-interconnected country in the EU, struggling to handle the surplus in solar power production.
The only way to improve the competitiveness of the Cypriot economy is in three pillars that the government has determined, Minister of Energy, Commerce and Industry George Papanastasiou said. The aim is to reduce electricity prices.
The first part of the strategy is building a liquefied natural gas (LNG) import terminal for power plants, he pointed out. It would immediately cut pollution by 35% to 40%, Papanastasiou claimed. The current carbon dioxide emissions of three million tons incur EUR 300 million in costs, he underscored. They are passed on to the electricity consumer, he explained.
Batteries are necessary to integrate photovoltaics
Renewables and primarily photovoltaics are the second pillar, according to Papanasthasiou. The solar power capacity in Cyprus reached 750 MW but only 19% of output reaches the grid, he noted. Being the only non-interconnected country in the EU, it is struggling to handle the surplus in the segment.
“It is unthinkable,” the minister stressed. He said a tender for state aid to battery energy storage systems (BESS) of an overall 150 MW in operating power is up for public discussion. The government intends to kickstart the procedure in September.
Big global names such as Tesla and Samsung “and a few others” have expressed interest in participating, Papanasthasiou revealed. The subsidy package amounts to EUR 40 million.
Cyprus wants to assign EU funding as its stake in electricity interconnection with Greece
The remaining pillar is the Great Sea Interconnector with Greece. Papanasthasiou said the government is waiting for a cost-benefit study within its bid to redirect the European Union’s funding into an ownership stake. Cyprus proposed a sum of EUR 100 million.
It would imply finding capital to fill the gap and a likely increase in the costs for taxpayers. The project for the subsea cable will be completed by mid-2029, the minister claimed.
Turning to electricity market liberation in the island country, Papanasthasiou said the target date is July 2025.
Notably, the Ministry of Finance estimated green transition investments in Cyprus by 2030 at more than EUR 3 billion. One third is from EU chests, and the rest it sees coming from the private sector and the state budget.
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