**Cyprus Set for First Grid Batteries to Cut Solar Curtailments**
The Republic of Cyprus is poised to take a significant step towards enhancing its renewable energy infrastructure as the first contracts for large-scale electricity storage batteries are set to be signed on Tuesday. This initiative aims to mitigate the curtailment of renewable energy, particularly solar power, and to increase the capacity of the national grid to absorb solar energy.
Energy Minister Michalis Damianos announced that the agreements will cover a total of 120 megawatts (MW) of centralized storage capacity, which will be managed by the transmission system operator (TSO). The project, which has a budget of €50 million, is expected to see the delivery of the batteries by January 2027, followed by installation that could take two to three months. This would enable the batteries to be operational by the summer of 2027.
Minister Damianos emphasized the importance of this development, stating, “In the summer of 2027, we will have at least 120 MW of storage batteries from the TSO. This means that energy from photovoltaics that is currently lost because it cannot be stored will now be able to be utilized.” The storage systems are designed to capture excess renewable electricity during periods of overproduction and release it when demand increases, thereby reducing the curtailments imposed on solar generators across the island.
Former Energy Minister George Papanastasiou highlighted that the project has been in development since 2023 in collaboration with the European Commission. He noted that the initiative is crucial for addressing the significant losses in renewable energy production due to curtailments. By the end of May 2023, approximately 160,000 megawatt-hours of green energy had already been lost due to curtailments affecting various renewable sources, including residential photovoltaic systems, commercial solar parks, and wind installations.
Papanastasiou explained that the issue of curtailment arises when electricity production from renewable sources exceeds demand during certain hours of the day. He stated, “Significant quantities of energy cannot be utilized,” which has become increasingly problematic as solar capacity has expanded more rapidly than the necessary infrastructure to manage surplus generation.
Data from the distribution system operator indicates that around 306 gigawatt-hours of renewable energy were curtailed in 2025, a significant increase from approximately 167 gigawatt-hours in 2024. Papanastasiou acknowledged the criticism regarding the slow development of storage infrastructure alongside the rapid growth of renewable energy generation. He attributed this delay to regulatory and funding challenges, asserting that “Production and storage had to go together,” and noting that storage has lagged behind production in many regions.
In addition to the state-backed project, the Electricity Authority of Cyprus (EAC) and private developers are pursuing further investments in storage solutions. Current figures reveal that there are 36 applications for battery storage projects with a combined requested capacity of around 925 MW. The EAC has submitted applications for storage facilities in Dhekelia and Moni, which would contribute a combined capacity of 180 MW. Meanwhile, private sector projects totaling more than 150 MW are progressing through various stages of the approval process.
Papanastasiou clarified that the state-owned battery system would not operate on a commercial basis. Instead, its primary role will be to support grid stability and energy security. He stated, “Its role will be to support the stability of the grid, storing energy during periods of overproduction and channeling it when there is a deficit or risk of outages.” He also noted that privately operated storage systems could potentially help lower electricity costs by allowing operators to store cheaper renewable energy and supply it during peak demand periods.
As Cyprus moves forward with this ambitious project, the integration of large-scale storage batteries is expected to play a crucial role in optimizing the use of renewable energy, enhancing energy security, and reducing reliance on fossil fuels. The successful implementation of these storage solutions could serve as a model for other regions facing similar challenges in managing renewable energy generation and grid stability.