Recent scheduled power cuts during the summer have highlighted the structural weaknesses that continue to affect Cyprus’ electricity system.
Breakdowns in generation units can occur in any electricity network. What distinguishes a modern energy system from a less mature one is its ability to absorb unexpected disruptions without affecting consumers’ electricity supply. Recent experience has once again shown that Cyprus remains some distance from that goal.
Following a statement by EAC trade unions referring to longstanding weaknesses in energy planning, the public debate is increasingly shifting from the power cuts themselves to the underlying causes.
Energy security depends not only on the availability of conventional generation units, but also on the overall design of the electricity system, adequate infrastructure and the ability to make effective use of every available energy source.
The renewable energy contradiction
The contradiction in Cyprus’ energy model has become increasingly evident.
Despite the significant growth of renewable energy sources (RES) in recent years, large quantities of clean electricity are still being curtailed during periods of strong sunshine because the grid cannot absorb them.
At the same time, when the availability of conventional generation units is reduced, the same system can face adequacy problems that may even result in power cuts.
This raises questions about why available renewable electricity is being curtailed while the system continues to face supply risks, as well as which institutional, technical and regulatory factors are preventing the full use of RES.
Three longstanding problems
The current state of Cyprus’ electricity grid is closely linked to three major structural issues affecting the energy market.
The first is the continued curtailment of renewable energy production. Electricity that cannot be absorbed by the grid is effectively lost, while ageing and highly polluting conventional generation units continue operating almost continuously to maintain system stability. They are often kept online because repeatedly shutting them down and restarting them is considered more costly.
This practice not only affects Cyprus’ environmental targets but also increases the cost of balancing the system, which is ultimately passed on to suppliers and, in turn, consumers.
The second issue is the slow development of energy storage systems. In many European markets, batteries have become a key tool for absorbing surplus renewable generation, reducing curtailments and strengthening security of supply.
In Cyprus, however, licensing and implementation procedures have faced significant delays and continue to progress slowly, despite energy storage now being recognised as an important condition for the effective operation of the electricity market.
The third issue concerns delays in connecting and licensing new renewable energy projects. Investments that could strengthen the country’s generation capacity remain on hold for long periods, limiting the development of a more competitive and decentralised energy model.
The need for central planning
These issues affect more than electricity producers and suppliers. They concern every household and business facing high energy costs, as well as consumers who have invested in photovoltaic systems but often cannot fully use the clean energy they generate.
Recent developments show that the discussion can no longer be limited to repairing a fault or managing an emergency.
Energy security requires a comprehensive modernisation of the electricity system, including sufficient generation capacity, modern energy storage infrastructure, faster implementation of RES projects, grid reinforcement and more effective operation of the Competitive Electricity Market.
A turning point for Cyprus
The recent power cuts during a period of extreme heat could provide an opportunity for a broader discussion about the future of Cyprus’ energy system.
The real challenge is not only to restore electricity quickly after a breakdown, but to create the conditions for a modern, flexible and resilient electricity system capable of meeting growing energy needs and responding effectively to the challenges of the energy transition.
Also read: €95m investment to upgrade Cyprus’ electricity grid
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