The energy regulatory authority (Cera) has approved in principle an application from the Cyprus Transmission System Operator (TSO) to develop energy storage systems, it emerged on Friday. 

The request was submitted after parliament passed a harmonisation bill submitted by the government. 

Cera’s decision allows the TSO to temporarily own, develop, manage and operate energy storage facilities. 

The decision provides for a storage system at the Athalassa substation near Nicosia, with an output power of 40 megawatts and a storage capacity of 80 megawatt hours, a storage system at the substation near Kalo Chorio, Larnaca, with an output power of 40MW and a storage capacity of 160MWh and a storage system at the Anatoliko substation in Paphos, with an output power of 40MW and a storage capacity of 160MWh. 

The conditions are that ownership of the storage systems, even if they are privately created, will be held by the TSO and that the implementation and connection of the storage systems will be completed by June 2026. 

Cera said it had taken into account the necessity for the immediate installation of storage for the needs of the electricity system in the public interest “for the safety, reliable operation, and economic operation of the system as well as for the protection of the consumers who are self-producers of energy from renewable sources and who have experienced cuts”. 

 “The fact that, in addition to the storage installation by the TSO, there is sufficient scope for the installation of further storage systems by investors for commercial purposes,” Cera said. 

Cera said that until the transmission system in Cyprus is connected to the transmission systems of other EU member states through interconnection lines, TSO can own, develop, manage and operate energy storage facilities, “without following an open, transparent and non-discriminatory procurement procedure”. 

It also said that the energy ministry, in addition to issuing a decree on the storage facilities, should also specify a timetable for the gradual transfer of energy storage facilities from the TSO to third parties through an open, transparent and non-discriminatory tendering process conducted by the TSO. 

The TSO had been responding to requests from private investors for the installation of autonomous storage facilities directly connected to the transmission system. 

Preliminary connection terms have already been issued to seven applicants for installations with a total capacity of 151 MW/410 MWh. 

The TSO said previously that the very high penetration of renewable energy required immediate measures for the optimal integration of energy produced, the limitation of cuts in electricity production from renewable energy sources, and the response of the electricity system in cases of failures. 

It said a recent amendment to the law to harmonise Cyprus with amendments made to the relevant European directive gives the TSO the right to own, develop, manage and operate energy storage facilities. 

A prerequisite was that the TSO first secure the approval of Cera and the minister before it creates storage systems needed.