electricity battery — The first contracts for large-scale electricity battery storage in Cyprus were signed on Tuesday, marking a significant step towards enhancing the nation’s renewable energy capabilities. This initiative aims to minimise renewable energy cuts and increase the amount of solar power that can be effectively utilised by the national grid.
Electricity battery: Government Commitment to Renewable Energy
Energy Minister Michael Damianos announced the signing of agreements that will cover 120 megawatts (MW) of centralised storage capacity. These batteries will be managed by the transmission system operator (TSO), representing a crucial advancement in addressing persistent challenges within the electricity system.
Project Details and Timeline
The €50 million project is set to see the batteries delivered by January 2027, with installation expected to take two to three months. This timeline aims for the batteries to be operational by the summer of that year. Damianos stated, “In the summer of 2027, we will have at least 120MW of storage batteries from the TSO.” He emphasised the importance of this initiative, noting that it will allow for the utilisation of energy from photovoltaics that is currently lost due to insufficient storage capacity.
Addressing Overproduction Challenges
The new storage systems are designed to capture excess renewable electricity during periods of overproduction and release it during times of heightened demand. This will help mitigate the curtailments currently faced by solar generators across Cyprus.
Collaboration Between Public Entities
The agreement was signed between the TSO and the Cyprus Telecommunications Authority (CyTA), both of which are public organisations. The project includes the installation and operation of three battery energy storage systems at transmission substations located in Nicosia, Paphos, and Larnaca. TSO Executive Director Stavros Stavrinos explained that these locations were chosen to ensure direct connectivity to the transmission system.
Renewable Energy Landscape in Cyprus
Stavrinos highlighted that renewables currently meet approximately 60 per cent of electricity demand, which he described as “a feat.” He noted that installed photovoltaic systems have exceeded 1,040MW, while the average electricity demand in Cyprus is around 650MW. This growing imbalance necessitates the development of more robust storage solutions.
Innovative Technology for Future Needs
One of the three storage systems will feature grid-forming technology, which signals the introduction of advanced systems suitable for isolated electrical grids like that of Cyprus. CyTA will collaborate with Huawei on this project, integrating Smart Battery Energy Storage Systems (BESS) that utilise artificial intelligence to optimise and automate energy storage. These systems will employ algorithms to predict weather patterns, solar generation, and facility demand, determining optimal times for charging and discharging electricity.
Historical Context of Energy Production Losses
Former Energy Minister George Papanastasiou noted that the project has been in development since 2023 in cooperation with the European Commission. It is specifically designed to address the increasing losses from renewable energy production. By the end of May 2023, approximately 160,000 megawatt hours of green energy had been lost due to curtailments affecting residential photovoltaic systems, commercial solar parks, and wind installations. “The problem arises because during several hours of the day, electricity production from renewable energy sources exceeds demand,” Papanastasiou explained.
Growing Demand for Storage Solutions
This issue has become more pressing as solar capacity has expanded more rapidly than the infrastructure capable of managing surplus generation. Data from the distribution system operator indicated that around 306 gigawatt hours of renewable energy were curtailed in 2025, a significant increase from approximately 167 gigawatt hours in the previous year. Papanastasiou acknowledged criticism regarding the slow development of storage infrastructure alongside the rapid expansion of renewable generation, attributing delays to regulatory and funding challenges.
Future Investment in Energy Storage
In addition to the state-backed project, the Electricity Authority of Cyprus (EAC) and private developers are pursuing further storage investments. Recent figures reveal 36 applications for battery storage projects with a combined requested capacity of around 925MW. The EAC has submitted proposals for storage facilities in Dhekelia and Moni, totalling 180MW, while private sector projects exceeding 150MW are progressing through various stages of approval.
Ensuring Grid Stability and Energy Security
Papanastasiou clarified that the state-owned battery system will not operate on a commercial basis but will instead focus on supporting grid stability and energy security. “Its role will be to support the stability of the grid, storing energy during periods of overproduction and channelling it when there is a deficit or risk of outages,” he explained. He added that privately operated storage systems could help lower electricity costs by enabling operators to store cheaper renewable energy and supply it during peak demand periods.
