Cyprus approves €95 million for electricity grid upgrades

Nicosia, Cyprus. The government has approved €95 million for major upgrades to the national electricity grid, aiming to expand capacity and enable greater use of renewable energy.

The investment is 70 per cent co-financed by the European Union and is not expected to be passed on to consumers through electricity bills.

EU funding and timetable

The funding will be provided through the Just Transition Fund, which is incorporated into Cyprus’ Thalia 2021-2027 Cohesion Policy Programme.

The programme finances green transition initiatives, national electricity grid upgrades, public transport electrification and a new Green Technical School in Nicosia intended to support a fair economic transition.

The planned actions are scheduled for completion by December 2029.

Grid infrastructure works

The measures include upgrades to existing infrastructure and facilities, as well as the installation of new advanced systems intended to increase grid flexibility.

The government said the works will mainly involve modernising existing transmission substations and constructing new primary substations in areas with high demand.

Transmission substations in Strovolos, Orounta, Akoursos, Papacostas, Ipsonas and Mari will be upgraded, along with the primary substation at Lanitio.

A new primary transmission substation will also be built at the new port of Limassol.

Energy transition

The finance ministry said the interventions were an important step towards the gradual development of the electricity grid and further use of renewable energy.

It added, however, that the projects alone would not provide a comprehensive solution to the challenges of the energy transition and would not automatically reduce electricity prices for consumers.