The Cyprus Energy Regulatory Authority (CERA) has approved the installation of the country’s first large-scale public energy storage systems, authorizing the Cyprus Transmission System Operator (TSOC) to develop, own, and operate them directly—without open tender procedures.

The approval, granted on June 18, 2025, stems from a special derogation under EU Directive 2024/1711, recently incorporated into national legislation. This exemption enables Cyprus to act swiftly in deploying battery storage infrastructure to reinforce grid stability, ensure a reliable electricity supply, and prevent curtailment for renewable energy prosumers.

Three utility-scale battery energy storage systems (BESS) will be installed at key substations:

• Athalassa: 40 MW output / 80 MWh capacity

• Free Industrial Zone (Larnaca): 40 MW / 160 MWh

• Eastern Substation (Paphos): 40 MW / 160 MWh

All systems must be fully installed and connected to the grid by June 2026.

Although TSOC retains ownership and operational control, CERA has stipulated that private storage operators will receive priority for grid services, preserving space in the market for commercial energy storage initiatives. The regulator emphasized that this move does not close the door to private investment, and that there remains significant potential for independent system development.

Cyprus’s Energy Minister is expected to issue a formal notification initiating TSOC's procurement process and laying out a roadmap for phasing out the current derogation.