Energy storage and hydrogen solutions align perfectly with Cyprus’ regional ambitions, as we promote the Mediterranean as a green corridor for energy transmission between EU and non-EU countries, Minister of Energy, Commerce and Industry George Papanastasiou said addressing the Energy Storage and Hydrogen Solutions conference in Nicosia.
The Minister remarked that innovative storage solutions will be critical to this success.
In his welcome address, the Minister said we are at a crucial juncture regarding our green transition efforts. On the one hand, climate change is having a profound effect on all our lives and, on the other hand, the whole world, but especially Europe, is looking for ways to urgently diversify its energy routes and suppliers, as a result of the energy crisis caused by the war in Ukraine and the current situation in the Middle East.
“Consequently, all countries, including Cyprus, are dynamically reshaping their energy strategies to reflect new geopolitical realities, secure their energy supply and address the need for affordable energy”, he said.
Within this global context, Cyprus, Papanastasiou added, “with its isolated energy system, faces its own unique set of energy challenges, which require tailored solutions”. We stand, he remarked, at a pivotal moment in the evolution of Cyprus’ energy landscape. Our high dependence on imported fossil fuels, combined with the lack of interconnections with continental Europe or neighbouring countries, has historically resulted in elevated energy costs and significant vulnerability to price fluctuations and supply disruptions.
Noting that Cyprus has made significant strides in renewable energy deployment, despite facing various challenges, the Minister said the country has developed comprehensive policy frameworks aimed at enhancing energy security, self-sufficiency, and geopolitical stability. The revised National Energy and Climate Plan for 2030 sets ambitious targets, including a minimum of 33% Renewable Energy Sources (RES) in gross final energy consumption. This plan envisions 38% of RES in the electricity sector, 54% in heating and cooling, and 17% in transportation, with solar energy expected to play a crucial role due to its cost-effectiveness and abundant availability.
As Cyprus increases its reliance on renewables, said Papanastasiou, it confronts the challenge posed by the intermittent nature of RES, necessitating robust system stability measures. Energy storage systems and hydrogen solutions are critical in this context, transforming energy storage into not just a technical solution but a strategic asset in the nation’s energy security.
The approach to integrating energy storage involves three main pillars. Firstly, the Ministry of Energy has laid a solid policy framework with the General Policy Framework for Energy Storage Systems published in July 2023, offering clear implementation guidelines. Secondly, regulatory reforms initiated by the Cyprus Energy Regulatory Authority (CERA) are facilitating the participation of energy storage facilities in the electricity market, effective from November 2024. And thirdly, he added, considerable financial resources have been allocated, with €40 million from the Recovery and Resilience Plan aimed at supporting hybrid storage systems alongside renewable projects, targeting around 150 MW of power capacity and 350 MWh of storage.
These efforts are yielding outcomes, as evidenced by CERA issuing licenses for standalone storage systems totalling 482 MW and 1,600 MWh, in addition to 790 MW for hybrid systems.
The Minister noted that while advancing on energy storage, Cyprus is also simultaneously exploring its hydrogen capabilities as a complementary solution. He announced that on February 28th, 2025, a public consultation on Cyprus’ National Hydrogen Strategy was launched which will remain open until March 31st, 2025.
So far, through technical assistance funded by the European Commission under the REPowerEU initiative, Papanastasiou said our analysis has yielded several pivotal findings that fundamentally guide our national hydrogen strategy.
Notably, direct electrification represents the most suitable option for Cyprus, particularly considering our island’s renewable energy potential.
Moreover, the gradual introduction of hydrogen in the transport sector by 2030, as the optimal and most cost-effective way to include hydrogen in our country’s energy mix, has been identified. According to our National Energy and Climate Plan estimates, he said, we anticipate the gradual introduction of truck and bus hydrogen fuelled vehicles by 2030.
In addition “we recognise the need for a comprehensive regulatory framework, which we aim to complete by 2027”.
Acknowledging the significant challenges to developing the hydrogen sector in Cyprus he explained that these include the water scarcity being of critical concern, as the production of green hydrogen through electrolysis requires substantial amounts of clean water (9 to 15 kg of water per 1 kg of green hydrogen), the absence of natural gas infrastructure while the technology faces economic challenges.
Pointing out that senior decision and policy makers from both the public and private sectors, alongside academics and experts, have a unique opportunity today to shape the future energy landscape of Cyprus, Papanastasiou said energy storage and hydrogen solutions align perfectly with our regional ambitions, as we promote the Mediterranean as a green corridor for energy transmission between EU and non-EU countries. For this, “innovative storage solutions will be critical to our success” he said.
(Source: CNA)
