Cyprus announces €95 million electricity grid upgrade project

Cyprus has launched a €95 million project to modernize and strengthen its national electricity transmission network, aimed at facilitating the energy transition and integrating more Renewable Energy Sources (RES). The project, which is scheduled for completion by December 2029, is co-financed by the European Union under the 'THALIA 2021-2027' Cohesion Policy Programme. Approximately 70% of the costs, or about €67 million, are provided by the EU’s Just Transition Fund. Officials confirmed that this financing model ensures the investment costs will not be passed on to consumers through electricity bills.

The upgrades will involve both existing infrastructure and the installation of new advanced systems. Key focus areas include the modernisation of transmission substations in Strovolos, Orounta, Akoursos, Papakosta, Ypsonas, and Mari, as well as the Lanitio Primary Substation. Additionally, a new primary transmission substation will be established at the New Limassol Port. These interventions are designed to increase grid capacity, improve flexibility, and reduce energy curtailment, though authorities noted that this is a step in a broader, ongoing effort rather than a comprehensive solution to all system weaknesses.