Newsroom
Cyprus is advancing a major programme to modernise key parts of its electricity network, backed by roughly €95 million in co-financing from the European Union’s Cohesion Policy Programme “THALIA 2021-2027”. The work aims to prepare the grid for higher shares of renewable energy, energy storage and fewer instances of renewable generation being switched off.
Projects are scheduled for completion by December 2029. They will modernise and strengthen critical sections of the existing system so it can handle rising demand linked to the energy transition and growing renewable capacity.
Work will include upgrades to current infrastructure plus installation of new equipment and systems that expand capacity and flexibility. Officials describe the package as an essential base for further investments needed for the shift to cleaner energy.
Substation upgrades and digital systems
A central element is the reinforcement of the electricity transmission system. Existing transmission substations in Strovolos, Orounta, Akoursos, Papakosta, Ypsonas and Mari, together with the Laniteio primary substation, will be modernised. A new primary transmission substation will be built at the New Port of Limassol.
The programme covers new power transformers, high- and medium-voltage switchgear, and contemporary protection and remote-control systems. These changes are designed to raise transmission capacity, ease bottlenecks and improve the reliability and security of supply.
Digital transformation of the transmission network will advance through modern digital equipment and smart-grid technologies. For the medium-voltage distribution network, advanced SCADA/ADMS systems will be introduced, a national distribution control centre established, and distribution substations equipped for remote monitoring and control.
A fibre-optic network for the distribution system will support the large data flows required by digitalisation and automation, including information from smart meters and remotely managed substations. A modern geographic information system environment will also be put in place to assist the digital overhaul of both transmission and distribution networks.
Fewer renewable curtailments and environmental gains
The upgrades are expected to create better conditions for connecting more renewable energy sources and storage systems. This should gradually reduce the need to curtail renewable output, especially from photovoltaic installations.
Grid reinforcement alone will not remove the problem entirely. Further progress will depend on the roll-out of energy storage, additional infrastructure and wider system changes in the years ahead. Greater grid capacity should also allow better use of electricity from solar and wind plants and ease the integration of storage technologies.
By supporting higher renewable penetration and storage, the programme contributes to Cyprus’s environmental goals of cutting reliance on conventional generation and lowering the carbon intensity of the electricity system.
Consumer costs and benefits
Around 70 percent of the estimated cost, approximately €67 million, will come from European funds via the Just Transition Fund. That share will not be recovered from consumers through electricity bills.
The projects are not expected to produce an immediate drop in household or business electricity charges, because they focus on infrastructure rather than the direct cost of generating power. Over time, however, higher use of renewables and storage, lower technical losses and more efficient grid operation could help contain energy costs and improve the overall performance of Cyprus’s electricity system.
Greater network reliability from the new transformers, switchgear, protection systems and digital controls is also intended to reduce the risk of supply interruptions linked to capacity constraints or ageing equipment.
