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Cyprus is set to take a major step toward solving one of its most frustrating energy problems, the fact that a large share of solar power produced on sunny days simply goes to waste because the grid cannot absorb it.
On Tuesday, the Cyprus Transmission System Operator (TSO) will sign contracts for the country’s first centralized electricity storage systems, marking the beginning of a new phase in how Cyprus manages renewable energy.
Energy Minister Michalis Damianos described the move as a “decisive step” that will help reduce the curtailment of photovoltaic production, in simple terms, the forced shutdown of solar panels when the system cannot handle excess electricity.
The project will deliver 120 megawatts of storage capacity, expected to be operational by the summer of 2027. The batteries are due for delivery in January 2027, with installation to follow within two to three months.
“In the summer of 2027, we will have at least 120 MW of storage batteries in the system,” Damianos said. “This means energy from photovoltaics that is currently being lost will now be stored and used.”
For many households and small solar producers across Cyprus, that loss is already a familiar frustration. On bright, sunny days, which are hardly in short supply on the island, electricity generation often exceeds demand. Without storage, the excess power is simply cut off.
The new batteries are expected to ease those cuts, particularly for residential solar producers who currently see parts of their production discarded due to grid limitations.
At the same time, the Electricity Authority of Cyprus (EAC) is pushing ahead with its own storage investments, while private companies are also entering the field. The TSO has already issued connection terms for several private battery projects, with applications actively progressing.
Officials believe that from 2027 onward, Cyprus will finally start building meaningful storage capacity, something the system currently lacks.
“This is a capability we do not yet have in practice,” Damianos noted. “From 2027 onwards, that will begin to change.”
The TSO project is part of a broader €50 million investment, following an international tender already awarded, according to TSO Director Stavros Stavrinos.
Growing wave of battery projects
Beyond the state-led system, interest from both EAC and private investors is rising quickly.
EAC alone has submitted plans for two major storage facilities, one 80 MW project in Dhekelia and another 100 MW facility in Moni, bringing its total planned capacity to 180 MW.
Private investors are also moving forward with projects totalling 151 MW, including developments in Ergates and Psevdas, which are in advanced stages of licensing and technical review.
A further five projects across areas including Arediou, Platanistia, Orounda, Alambra and Paleometocho have already received connection offers from the TSO, putting them one step closer to implementation.
In total, around 36 applications for storage projects have been submitted, representing a potential 925 MW of capacity. However, officials stress that not all projects are guaranteed to move ahead, as final decisions rest with investors and financing conditions.
Solar waste still a major issue
The urgency behind these investments is clear in the numbers.
In 2025 alone, Cyprus was forced to cut around 306 gigawatt-hours of renewable energy, mostly from solar systems, because the grid could not handle the excess supply. That is a sharp increase from 167 GWh in 2024.
On peak sunny days, curtailments regularly reached 300–400 MW, meaning a significant portion of clean energy was effectively switched off. Even in May 2026, cuts frequently exceeded 250–320 MW during high production hours.
In practical terms, this means that during some of the sunniest hours of the year, Cyprus is literally producing more electricity than it can use, and then wasting it.
A turning point for the grid?
Officials say the introduction of large-scale storage could finally change that equation by capturing excess solar energy during the day and releasing it when demand is higher, such as in the evening.
For households, that could eventually mean better use of rooftop solar systems. For the wider system, it could reduce reliance on conventional generation and ease pressure on electricity prices.
But the real test will come in 2027, when the batteries are expected to go live, and Cyprus will find out whether its long-running solar surplus problem finally has a practical solution.
