Apostolos Tomaras
The signing of contracts for Cyprus’ first central electricity storage systems marks a major step toward reducing the solar energy that is currently being wasted from both residential and commercial photovoltaic systems.
The project involves the installation of three battery storage systems with a combined capacity of 120MW by the Cyprus Transmission System Operator (TSO). In simple terms, the batteries will store excess solar power that would otherwise be lost when photovoltaic systems are forced to reduce output to protect the stability of the electricity grid.
According to official figures, Cyprus lost 306GWh of solar energy in 2025 due to these curtailments. That amount of electricity would have been enough to help meet demand even during periods of high consumption, when the grid operator was forced to implement power cuts.
A key role in the project will be played by CYTA, which has been tasked with delivering the systems by the first half of 2027. Under the contract signed between the TSO and CYTA, the batteries are expected to be delivered in January 2027 and installed over the following two to three months, allowing them to become operational before the summer of that year.
The project
The storage systems are being implemented under a decision issued by the Cyprus Energy Regulatory Authority (CERA) in June 2025, instructing the TSO to develop energy storage facilities at three existing transmission substations.
The project carries a price tag of approximately €50 million and will be funded through the EU’s Thalia 2021-2027 Cohesion Policy Programme.
The three battery systems will be installed in different parts of the island:
- A 40MW / 80MWh system at the Athalassa substation in Nicosia
- A 40MW / 160MWh system at the Eastern substation in Paphos
- A 40MW / 160MWh system at the Free Industrial Zone substation in Larnaca
The locations were selected to maximize the benefits of energy storage while allowing direct connection to the transmission network.
According to the TSO, this setup will not only store surplus renewable energy but also provide essential backup reserves to the electricity system without restrictions, benefiting the entire grid.
More projects waiting in the pipeline
Beyond the three government-backed systems, there is growing interest from both public organizations and private investors in energy storage.
The TSO currently has 36 applications on its registry for battery storage projects with a combined requested capacity of around 925MW.
The Electricity Authority of Cyprus (EAC) is among the most active applicants. According to the latest connection applications list published by the TSO, the EAC has submitted plans for:
- An 80MW storage facility in Dhekelia
- A 100MW storage facility in Moni
Together, the two projects would add 180MW of storage capacity.
Several private-sector projects are also advancing. Among the most mature applications are:
- A 32MW storage system in Ergates
- A 59MW storage system in Psevdas
Additional projects are planned in Arediou, Platanisteia, Orounta, Alambra and Palaiometocho, with a combined capacity of 60MW.
Solar cutbacks to continue for now
Until the first battery systems become operational, the TSO will continue curtailing solar production and may still need to implement electricity supply restrictions depending on demand levels.
Cyprus currently has more than 1,040MW of installed solar capacity, while average electricity demand stands at around 650MW.
Because there has been no large-scale storage available, the grid operator has had to regularly limit solar generation. As a result, 306GWh of renewable energy was lost in 2025, up significantly from the 167GWh curtailed in 2024.
According to EAC data, daily peak solar curtailments ranged from around 50-100MW on milder days, mostly during winter, to more than 300-400MW on sunny days during spring, summer and autumn.
Last month alone, daily peak curtailments ranged from roughly 80MW to more than 300MW.
Government sees boost for green energy
The government welcomed the signing of the contract, describing it as a milestone for Cyprus' energy transition.
Energy Minister Michalis Damianos said the project demonstrates the government's commitment to energy storage and the broader green transition strategy.
He said the batteries will help increase the use of renewable energy, create a more efficient and reliable electricity system, and reduce pollution.
The TSO also welcomed the growing investment interest from private developers, stressing that all storage projects are needed if Cyprus is to meet its national and European renewable energy targets.
Officials say the expected long-term result will be less wasted green energy, fewer emissions and, ultimately, lower electricity costs for consumers, alongside improvements in the overall reliability of the power system.
