Big names such as Tesla and Samsung have shown interest in a public tender aiming to set batteries to store electricity in Cyprus, Minister for Energy, Commerce and Industry George Papanastasiou has said, adding that the first phase concerns a 150-Mega Watt storage facility for which a tender is expected to be launched in September.

Addressing the International Business Day organised by the Cyprus International Business Association (CIBA), Papanastasiou outlined the government’s strategy to reduce the electricity prices in Cyprus, which he described as the single source that would provide “a real chance” for the improvement of the country’s competitiveness.

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The Energy Minister referred to the three pillars that would render Cyprus as an energy hub and facilitate green transition. The first pillar concerns the creation “as soon as possible” of the terminal in Vasilicos for the introduction of Liquified Natural Gas (LNG) for electricity generation, which would directly reduce CO2 emissions by 35% to 40% and consequently the cost of electricity, as he stressed.

Such emissions account for €300 million tones of CO2 rights per annum, a cost transferred to the consumer, he added.

The second pillar concerns the further increase of renewables and mainly energy from photovoltaics. Papanastasiou stressed however that while Cyprus generates 750 MW of electricity from solar panels, only 19% enters the electricity grid while the remainder is discarded.

“This is unthinkable,” he said, noting that the Ministry is preparing to use a subsidy scheme for the development of a storage system with the private sector with a total subsidy of €40 million.

Papanastasiou said the project is in the stage of public consultation with the first phase expected to be launched in September for a 150 MW storage system.

“We are already seeing interest from big names such as Tesla and Samsung as 150 MW is a quite substantial capacity,” he added.

Moreover, according to the Energy Minister, the third pillar concerns the electricity interconnection between Cyprus and Greece, with a sub-sea cable called “Great Sea Interconnector,” estimated to be the largest in the world.

He pointed out that usually in the case of interconnectors, the electricity flows from the cheapest to the most expensive destination.

Papanastasiou recalled that the government awaits a cost and benefit analysis, by the Greek IPTO, the project promoter, to take its final investment decision to enter the project’s equity with €100 million.

But he noted that the project will happen, as it secured a €657-million grant from the European Commission via the Connecting Europe Facility, which is the largest financing provided in the context of the Facility.

He also noted that the government aims to launch a competitive market for electricity by July 2025, as well as to create a “smart” electricity grid which would facilitate the increase of renewables in Cyprus’ energy mix.