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Cyprus’ green energy transition, once a major draw for investors, is now facing serious roadblocks as the national electricity grid struggles to handle more renewable energy projects. Entrepreneurs who rushed to develop photovoltaic (PV) parks in 2019 and 2020 saw impressive profits in 2022 due to favorable conditions, but those hoping to connect new solar projects to the grid today are hitting a wall.
The problem? Saturation. According to Kathimerini's Dorita Yiannakou, in key areas, particularly western Nicosia, the grid is already overloaded with renewable energy sources (RES), meaning new solar parks can’t connect unless the infrastructure is upgraded. The Cyprus Transmission System Operator (TSO) has acknowledged the issue, but solutions will take time—upgrades are part of the Ten-Year Transmission System Development Programme, but investors are left waiting. Meanwhile, businesses that have secured permits from regulatory authorities are being told that actual grid connectivity will be delayed indefinitely.
Where Solar Can (and Can’t) Grow
According to the Transmission Substation RES Reception Capacity Map, some areas still have room for solar energy, while others are completely saturated. For example:
- Latsia (Nicosia) is overloaded, with 69.1 MW of installed RES, making further PV development impossible for now.
- Kolossi still has space, with substations capable of handling more RES integration.
- Larnaca’s commercial center (66.3 MW available) and Dasoupoli (71.9 MW available) are also areas where new PV projects could still move forward.
This mapping system aims to inform investors where they can (and can’t) install large-scale PV parks, but the broader issue remains: without significant grid expansion, Cyprus’ solar future looks increasingly uncertain.
The Shift to Self-Consumption
With large PV projects running into roadblocks, industry experts say self-consumption solar systems for homes and businesses will dominate the next phase of Cyprus’ renewable energy push. According to Fanos Karantonis, president of the Cyprus Association of Renewable Energy Companies (SEAPEK), more than 85% of licensed solar parks in Cyprus will never be built—a reality that is playing out globally as infrastructure struggles to keep up.
Currently, only 1 in 10 licensed PV parks in Cyprus will manage to secure connectivity, raising concerns among investors. Karantonis is calling on the Ministry of Energy to clear out inactive projects and prioritize those that have real potential to move forward.
Profits Under Threat: The Issue of Energy Cuts
Adding to investor frustration, frequent energy cuts are hitting operational PV parks, reducing profitability. According to the TSO, large solar parks are the most affected, and some owners have already taken legal action against authorities. The Electricity Authority of Cyprus (EAC) regularly orders reductions in solar energy production, leading to financial losses for park operators who had counted on stable returns.
What’s Next?
Despite these challenges, interest in new PV projects remains high. The Environmental Authority is currently reviewing three new environmental impact assessment studies (EIA) for solar parks:
- A 1.5 MW agro-photovoltaic park in Frenaros, Famagusta.
- A 1.34 MW photovoltaic park in Marki, Nicosia.
- Another 1.5 MW solar project in Tseri, Nicosia.
While these projects are still in the consultation phase, whether they will actually move forward depends on grid capacity and government action.
The Big Picture
Cyprus’ green energy ambitions remain strong, but without serious grid upgrades, the future of large-scale solar projects looks bleak. The focus is shifting towards self-consumption for households and businesses, while investors in large PV parks are left battling delays, energy cuts, and an uncertain future. The government will need to act fast to address grid saturation and streamline solar project approvals, or risk losing momentum in the country’s renewable energy transition.
