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Major global companies like Tesla and Samsung have expressed interest in developing a battery-based electricity storage system in Cyprus, according to Minister of Energy, Trade, and Industry George Papanastasiou. Speaking at the International Business Forum in Limassol, Papanastasiou announced that formal tenders for the 150 Mega Watt project will be issued in September.
Papanastasiou outlined the government's strategy to lower electricity costs, which he termed essential for enhancing the country's economic competitiveness. The strategy is built on three pillars aimed at transforming Cyprus into an energy hub.
The first pillar is the rapid establishment of a liquefied natural gas (LNG) import terminal for power generation. This project is expected to reduce pollutants by 35%-40% and lower electricity costs by cutting down on the annual production of 3 million tonnes of carbon dioxide, equivalent to €300 million in emission allowances currently borne by consumers.
The second pillar focuses on expanding the use of renewable energy, particularly photovoltaics. Despite Cyprus producing 750 MW from photovoltaics, only 19% is integrated into the grid, with most being wasted. To address this, the government plans to create a battery storage system with private sector involvement and a €40 million subsidy. Tenders for 150 MW of storage capacity will be launched in the first phase around September, attracting interest from companies like Tesla and Samsung.
The third pillar involves electrical interconnection between Cyprus and Greece. Papanastasiou noted that electricity typically flows from the cheapest to the most expensive destination. The government awaits a comprehensive cost-benefit study from the project developer, which will be reviewed with the assistance of a reputable firm before committing €100 million to the project's capital. The interconnection project has received €657 million in funding from the European Commission under the Connecting Europe Facility.
Additionally, Papanastasiou mentioned that the competitive electricity market is set to open in July 2025, with plans for a smart electricity grid to facilitate further use of renewable energy sources.
[Information from CNA]
