Cyprus is moving ahead with a €95 million investment programme to modernise key parts of its electricity grid, aiming to support greater use of renewable energy, expand energy storage integration and reduce the curtailment of renewable electricity generation.
The project is being co-financed by the European Union through the Cohesion Policy Programme "THALIA 2021-2027" and is expected to be completed by December 2029, according to the Directorate General for Development at the Ministry of Finance.
The planned works focus on strengthening and modernising critical sections of the existing electricity network to meet growing demands linked to the energy transition and the increasing share of renewable energy sources in Cyprus' energy mix.
The investment includes upgrades to existing infrastructure and the installation of new systems designed to improve the grid's capacity and operational flexibility. Authorities said the measures will provide a foundation for further investments required to support the country's long-term energy transition.
Substations
A central element of the programme is the upgrading of the electricity transmission system through the modernisation of existing transmission substations and the construction of new primary substations in areas with growing demand.
Transmission substations in Strovolos, Orounta, Akoursos, Papakosta, Ypsonas and Mari, together with the Laniteio Primary Substation, will be upgraded. A new primary transmission substation will also be built at the new port of Limassol.
The works will include the installation of new power transformers, high- and medium-voltage switchgear, and modern protection and remote-control systems. The upgrades are expected to increase transmission capacity, ease network bottlenecks and improve the reliability and security of electricity supply.
Smart grid
The project also includes the digital transformation of the transmission network through the deployment of advanced digital equipment and smart-grid technologies.
For the medium-voltage distribution network, plans include the introduction of advanced SCADA and ADMS systems, the establishment of a National Distribution Control Centre and the modernisation of distribution substations with remote monitoring and control capabilities.
A fibre-optic network for the distribution system will also be installed to support the transmission of large volumes of data required for network automation and digitalisation, including communications with smart meters and remotely managed substations.
Digital transformation
In addition, a modern Geographic Information System environment will be developed to support the digital transformation of both transmission and distribution networks.
Authorities said the upgrades are expected to improve conditions for connecting additional renewable energy and storage systems to the grid, helping to reduce the curtailment of renewable generation, particularly from photovoltaic installations.
However, they noted that the planned works alone will not eliminate curtailments. Further progress will depend on the development of energy storage facilities, additional infrastructure projects and the broader transformation of the electricity system.
Renewables
The increased capacity is also expected to enhance the utilisation of electricity generated by solar and wind installations while facilitating the integration of storage technologies.
According to the Directorate General for Development, about 70% of the project cost, estimated at approximately €67 million, will be financed through the EU's Just Transition Fund. As a result, that portion of the investment will not be recovered from consumers through electricity tariffs.
The authorities said the projects are not expected to lead to an immediate reduction in electricity bills because they relate to network infrastructure rather than the direct cost of electricity generation.
Over the longer term, however, increased use of renewable energy and storage, lower technical losses and more efficient network operation could help contain energy costs and improve the overall efficiency of Cyprus' electricity system.
Source: CNA
