Cyprus is set to sign contracts on Tuesday for the installation of the first centralised electricity storage systems, with a total capacity of 120MW, marking a major step in the country’s energy transition.
The project will be implemented by the Cyprus Transmission System Operator (TSOC) and aims to reduce the curtailment of solar energy production while improving the utilisation of renewable energy sources.
Major step for renewable energy integration
Energy Minister Michalis Damianos said the signing of the contracts “signals a decisive step” towards reducing the curtailment of photovoltaic production and increasing renewable energy penetration in the electricity system.
He added that battery storage systems are expected to be delivered in January 2027 and installed within two to three months, with full operation targeted by the summer of 2027.
According to the Minister, at least 120MW of storage capacity will be available by the summer of 2027, allowing solar energy that is currently lost due to grid limitations to be stored and reused.
Reduced curtailments expected
The new infrastructure is expected to primarily benefit households producing electricity through rooftop photovoltaic systems, many of which currently face energy losses due to grid constraints.
The Electricity Authority of Cyprus (EAC) is also advancing its own storage investments, while TSOC has issued connection terms for private battery projects, several of which are already under review.
The €50 million project was awarded through an international tender, according to TSOC Director Stavros Stavrinos.
Strong investment interest in storage projects
Beyond the TSOC’s project, significant interest has been recorded from the Electricity Authority of Cyprus and private investors, with a combined planned capacity exceeding several hundred megawatts.
The EAC alone has submitted applications for 180MW of storage capacity across two major projects in Dhekelia and Moni.
Private investors are also pursuing projects totalling 151MW, while 60MW of projects have already received connection offers from the TSOc.
In total, 36 applications representing around 925MW of storage capacity are currently registered, although implementation depends on investor readiness and project financing.
Rising renewable energy curtailments
According to system data, renewable energy curtailments in Cyprus increased in 2025, with daily peak reductions ranging between 50MW and over 400MW depending on weather conditions.
Overall, approximately 306GWh of renewable energy was curtailed in 2025, significantly higher than the 167GWh recorded in 2024.
In May 2026 alone, curtailments frequently exceeded 300MW during peak solar production hours, highlighting the urgency for storage solutions.
Also read: Fuel prices rise 20.5% in Cyprus in May – what’s happening across Europe
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