Cyprus is expediting the development of central electricity storage systems after a decision by the Transmission System Operator (TSO) to establish storage infrastructure alongside private sector projects.

According to the Cyprus News Agency, the initiative aims to strengthen the reliability of the electricity network and support the wider transition towards renewable energy.

The TSO has already issued preliminary connection terms to private investors for stand-alone storage systems with a combined power capacity exceeding 200 MW and storage capacity of around 500 MWh.

Connection terms have also been issued for private hybrid solar and battery systems with 29 MW of power and approximately 100 MWh capacity.

The TSO said electricity storage is particularly important for Cyprus due to its isolated electricity network and the increasing contribution of renewable energy sources.

Without storage capacity, excess renewable energy produced during periods of high generation, particularly midday hours, can be lost.

The electricity grid itself remains exposed to fluctuations caused by weather conditions and changes in demand, adding that storage would help manage these challenges.

Following a decision by the energy regulatory authority approving the development and management of privately owned storage facilities integrated into the transmission network, the TSO awarded a tender for the supply and installation of three storage systems with a combined capacity of 120 MW and 400 MWh.

The units will operate in the public interest by improving network stability, absorbing excess renewable energy during periods of high production and returning electricity to the system during periods of increased demand.

The TSO said the operating framework for the units is still being developed, with priority to be given to privately operated storage facilities participating commercially in the electricity market.

The transfer of the TSO facilities to third parties will reportedly take place through an open tender process once Cyprus completes its electrical interconnection with other member states.