INTIEACyprus · Aid Scheme for Installation of Energy Storage Systems in Combination with Renewable Energy Sources (The Scheme)PolicyIn force

Aid Scheme for Installation of Energy Storage Systems in Combination with Renewable Energy Sources (The Scheme)

Managed by the Ministry of Energy, Commerce and Industry (MECI), this scheme facilitates the deployment of hybrid energy systems (combining renewable generation with storage) to mitigate energy curtailment and enhance grid stability. The programme is divided into two phases:…

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Country / jurisdiction: Cyprus · Year: 2024 · Status: In force · Level: National · Type: Voluntary

Managed by the Ministry of Energy, Commerce and Industry (MECI), this scheme facilitates the deployment of hybrid energy systems (combining renewable generation with storage) to mitigate energy curtailment and enhance grid stability. The programme is divided into two phases:

Phase A (Investment Aid): Backed by €40 million from the EU Just Transition Fund (JTF), this phase provides grants for the installation of storage units at both existing and new RES plants. The investment aid is capped at €125,000 per MW of storage capacity.

Phase B (Operating Aid): Funded by the national RES Fund, this phase supports new hybrid projects through two-way Contracts of Difference (CfDs).

Key Requirements & Technical Details:

Eligible Technologies: Targets mature technologies including lithium-ion batteries, flow batteries, and pumped hydro storage.

Storage Duration: Systems must have a guaranteed discharge duration of at least 2 hours (for systems up to 120 kW) or 3 to 4 hours for larger plants.

75% Rule: To ensure clean charging, the storage component must absorb at least 75% of its energy from the directly connected renewable energy installation on an annual basis.

Contract Length: New projects under the scheme are eligible for 10-year contracts.

Official source: https://bfu.meci.gov.cy/wp-content/uploads/2024/05/%CE%A0%CE%B1%CF%81%CE%AC%CF%81%CF%84%CE%B7%CE%BC%CE%B1-%CE%92-Hybrid-RES-storage-scheme.2024.Final_.pdf

Source

https://www.iea.org/policies/30945

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