EU-backed €50m plan targets grid stability improvements

A total of €50 million will be invested this year in the installation of electricity storage systems at three locations across Cyprus, members of parliament heard during discussions on the Transmission System Operator’s (TSO) 2026 budget. The TSO’s total budget for the fiscal year amounts to €67.3 million, with the majority of the storage project funding — €49 million — secured through an EU grant.

The storage systems, consisting of large-scale battery units housed in specialised containers, are designed to improve grid stability and reduce interruptions affecting domestic and commercial photovoltaic installations. Tenders for the procurement of the systems have already been launched and are close to being awarded, pending final approval of the budget. Contracts are expected to be signed in March, with the project timeline estimated at eight months from award. While completion is unlikely before this summer, authorities are targeting operational readiness by winter 2026.

The battery units will be installed adjacent to substations of the Electricity Authority of Cyprus in Paphos, Athalassa and Larnaca. The move comes amid ongoing challenges linked to excess renewable energy production during periods of low demand, which has led to temporary disconnections of solar systems to safeguard grid stability. The introduction of storage capacity is expected to significantly reduce such curtailments, support greater integration of renewable energy and enhance the overall efficiency and resilience of the national electricity network.