A €95 million investment will upgrade critical parts of the power grid, creating better conditions for greater use of renewable energy, energy storage and reduced curtailment of green electricity.
The project is co-funded by the European Union under the Cohesion Policy Programme “THALIA 2021-2027”, with the actions expected to be completed by December 2029.
The investment focuses on modernising and strengthening existing electricity infrastructure so the system can respond to the growing demands created by the energy transition and the increasing penetration of renewable energy sources.
Modernising key infrastructure
A central part of the project involves upgrading the Electricity Transmission System through the modernisation of existing Transmission Substations and the installation of new Primary Substations in areas with increased energy demand.
Transmission Substations in Strovolos, Orounta, Akoursos, Papakosta, Ypsonas and Mari, as well as the Lanitio Primary Substation, will be upgraded.
A new Primary Transmission Substation will also be established at the New Limassol Port.
The work includes installing new power transformers, high- and medium-voltage switchboards, and modern protection and remote-control systems. These measures are expected to increase transmission network capacity, reduce bottlenecks and improve the reliability and security of electricity supply.
The power grid will also undergo a digital transformation through modern digital equipment and smart-grid technologies.
Greater use of smart-grid technology
The project also includes the automation of the Medium-Voltage Distribution Network through advanced SCADA/ADMS systems, the creation of a National Distribution Control Centre and the modernisation of Distribution Substations with remote monitoring and control capabilities.
These systems will allow continuous monitoring of the network, faster fault detection, remote equipment management and the immediate implementation of corrective measures where necessary.
A fibre-optic network for the Distribution System will also be co-funded. It will enable the reliable transmission of the large volumes of data generated by the digitisation and automation of the network, including information from smart meters and remotely monitored and controlled Distribution Substations.
The measures are expected to improve the management of the Distribution System in near real time, strengthening the reliability and quality of electricity supply.
The investment also includes a modern Geographic Information System (GIS) environment to support the digital transformation of the Transmission and Distribution Networks and the energy transition.
Benefits for renewable energy
The upgrades are expected to strengthen the reliability, efficiency and capacity of the power grid.
Replacing existing equipment and installing modern control, protection and remote-management systems should improve network management and reduce the likelihood of faults or power interruptions.
Higher network capacity will also create better conditions for integrating renewable energy sources and energy storage systems, gradually helping to reduce the circumstances that currently lead to green energy curtailments.
The measures are also expected to reduce electricity transmission losses and improve the overall energy efficiency of the system.
At the same time, they will provide infrastructure needed for the further development of electric mobility, smart grids, energy storage and other emerging energy technologies.
Helping reduce renewable energy curtailments
One of the key aims is to reduce curtailments of renewable electricity, particularly from photovoltaic systems.
At present, when the electricity system cannot absorb all the energy being generated, part of the renewable output must be curtailed to maintain system safety and stability.
Upgrading substations and increasing network capacity will create better conditions for absorbing more renewable electricity and reducing the frequency of such curtailments.
However, the investment alone will not eliminate the problem completely.
Further reductions will also depend on the development of energy storage systems, additional infrastructure and other measures, as well as the wider transformation of the electricity system in the coming years.
EU funding to limit costs for consumers
The project is expected to provide a significant financial benefit for consumers because European co-financing will cover a substantial part of the investment cost.
Around 70% of the project cost, estimated at approximately €67 million, will be covered by European funds through the Just Transition Fund. This amount will therefore not be passed on to consumers through electricity bills.
The investment does not, however, mean an immediate or automatic reduction in electricity bills, as the measures primarily concern infrastructure upgrades rather than the direct cost of electricity generation.
Further benefits could emerge gradually as greater use of renewable energy, energy storage, reduced technical losses and more efficient network operation help contain energy costs over the longer term.
Infrastructure for the energy transition
With completion scheduled for 2029, the “Transformation of the Electricity Grid to Support the Energy Transition” actions represent a major investment in Cyprus’ energy infrastructure.
The measures do not provide a complete solution to all the challenges facing the electricity system. They do, however, establish an important foundation, with EU support, for the future development of the Cyprus power grid.
The investment is expected to support greater use of green energy, the expansion of energy storage and the gradual adaptation of the electricity system to the demands of the energy transition, according to the press release.
Also read: EU Presidency: Cyprus proves its role as EU–Middle East bridge
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