**€95 Million Approved for Electricity Grid Upgrades in Cyprus**
The Cypriot government has announced the approval of €95 million for significant upgrades to the national electricity grid, a move aimed at enhancing the grid's capacity and facilitating a greater integration of renewable energy sources into the country's energy mix. The funding for this initiative is notably co-financed by the European Union, which will contribute 70% of the total investment through the Just Transition Fund.
This financial support is part of the broader Thalia 2021-2027 Cohesion Policy Programme, which focuses on financing essential green initiatives, including upgrades to the national electricity grid, electrification of public transport, and the establishment of a new Green Technical School in Nicosia. The government has assured that the costs associated with this investment will not be transferred to consumers through increased electricity bills.
The planned upgrades are set to be completed by December 2029 and include both enhancements to existing infrastructure and the installation of new advanced systems. The Ministry of Finance emphasized that these upgrades represent a crucial step in evolving the electrical grid and increasing the utilization of renewable energy sources. However, it also cautioned that these measures alone do not constitute a comprehensive solution to the challenges posed by the energy transition, nor will they automatically lead to lower electricity prices for consumers.
The upgrades will focus primarily on modernizing existing transmission substations and constructing new primary substations in areas with high electricity demand. Specifically, the government plans to upgrade transmission substations located in Strovolos, Orounta, Akoursos, Papacostas, Ipsonas, and Mari, as well as the primary substation at Lanitio. Additionally, a new primary transmission substation will be built at the new port of Limassol.
The scope of work will also include the installation of new transformers, high and medium-voltage panels, and advanced protection and remote-controlled systems. These improvements are expected to increase the capacity of the transmission grid, alleviate bottlenecks, and enhance the reliability and security of the power supply.
Another significant aspect of the upgrades is the automation of the medium-voltage transmission grid, which will involve the implementation of Supervisory Control and Data Acquisition (Scada) and Advanced Distribution Management System (Adms) technologies. Scada systems will facilitate real-time data collection and remote command, while Adms will integrate outage management and grid analysis, optimizing power distribution through a unified software platform.
Moreover, the project will include the installation of a fibre-optic grid for the transmission system, enabling the transfer of large volumes of data, including information from smart meters to distribution substations. These technological advancements are anticipated to improve overall grid management and reduce the risk of power outages and breakdowns.
The government highlighted that expanding grid capacity will create favorable conditions for the further integration of renewable energy sources and energy storage systems, which will help mitigate the current limitations on green energy production.
As Cyprus moves forward with these upgrades, the government aims to not only modernize its electricity infrastructure but also to support a transition towards a more sustainable energy future. The investment reflects a commitment to enhancing energy resilience while aligning with broader European Union goals for renewable energy integration and climate change mitigation.