- Cyprus has introduced its first-ever energy storage subsidy scheme concerning large-scale renewable energy plants.
- The subsidy scheme runs until 2027, at which time the ministry will be running open calls for bids.
Cyprus has introduced its first-ever energy storage subsidy scheme for large-scale renewable energy plants, targeting a 350 MWh rollout. The scheme has a competitive character, offering EUR 35 million ($36 million) for the purchase and installation of energy storage units alongside existing solar PV, wind, and biomass power plants.
Under the new legislation, solar PV, wind and biomass plants that receive FiTs up to EUR 166/MWh can claim capital expenditure (capex) for purchasing and installing storage capacity up to EUR 100,000/MWh.
However, there is a subsidy cap of EUR 300,000/MW for solar PV and wind farms and EUR 115,000/MW for biomass installations. Equipped with EUR 25 million, this category will receive the scheme’s largest portion of funding.
Furthermore, solar PV and wind parks that receive FiTs larger than EUR 166/MWh and up to EUR 250/MWh are eligible for a maximum subsidy of EUR 50,000/MWh of storage. There is a subsidy cap of EUR 100,000/MW of solar PV and wind power farms. The scheme will finance this category with EUR 2.5 million.
The third category comprises solar PV and wind parks that receive FiTs larger than EUR 250/MWh and up to EUR 340/MWh. The maximum amount of capex subsidy for these plants is EUR 25,000/MWh of storage and the subsidy cap now drops to EUR 50,000/MW of solar PV and wind power capacity. This category has also a budget of EUR 2.5 million.
Finally, renewable power plants that operate under net billing – practically these are all PV installations – constitute the final group. The program will dedicate EUR 5 million for this category and has set a maximum subsidy of EUR 75,000/MWh of storage.
However, for this category only, the subsidy scheme provides only up to 70 per cent of the capex storage costs. On the contrary, plants that belong to the other three categories are eligible for 100 per cent of capex compensation.
The subsidy scheme runs until 2027, at which point the ministry will hold open calls for bids. The first call will run from February 14 to March 28, 2025, and interested parties must apply electronically.
The ministry argues that the primary goal of the new subsidy scheme is to reduce the cost of electricity on the island. This goal, adds the ministry, will be met because storage units will absorb power that is currently curtailed and inject it into the grid, supplying it with cheap electricity.