Cyprus is taking an important step in the development of its energy infrastructure. The island’s first utility-scale electricity storage systems are expected to arrive in January 2027, with commissioning planned before the beginning of summer 2027. Energy Minister Michalis Damianos recently announced the development.
The project is intended to address one of the main problems facing Cyprus’ electricity system: the inability to store surplus solar energy, which forces operators to regularly curtail power generation. Once the new storage systems, with a total capacity of 125 megawatts, become operational, the authorities expect to significantly reduce such restrictions and improve the reliability of the electricity supply.
Why Cyprus Needs Utility-Scale Energy Storage
Contracts between the contractor and the Cyprus Transmission System Operator (TSOC) were signed at the end of June 2026. The new battery facilities will store electricity generated by solar power plants during the day and feed it back into the grid during peak demand hours. At present, the main problem arises in the evening. Solar power plants produce large amounts of electricity during the day, but it cannot be fully utilised. As a result, the operator is forced to restrict the operation of solar parks.
At the same time, conventional generation capacity in Cyprus stands at just over 1,000 megawatts. On hot summer evenings, when thousands of air conditioners are operating simultaneously and the peak tourist season increases electricity consumption, existing capacity becomes insufficient. Storage systems will help cover this shortfall without additional power cuts or emergency measures.
Solar Energy Losses Continue to Rise
Statistics show that the problem is becoming increasingly serious. According to CyprusGrid, during the first five months of 2026, commercial solar power plants connected to the SCADA system were subject to curtailment on 145 out of 151 days. During this period, 115,322 megawatt-hours of electricity were lost. By comparison:
- 2025 — 275,975 megawatt-hours lost;
- 2024 — 165,432 megawatt-hours lost.
According to the Electricity Authority of Cyprus’ (EAC) annual report for 2025, the level of curtailment reached:
- 50–100 megawatts per day during periods of low demand;
- more than 300–400 megawatts on sunny days in spring, summer, and autumn.
These figures indicate that a substantial share of the clean energy generated is currently being wasted.
Several Hundred Megawatts of Storage Capacity to Be Installed
The state project is only one part of a large-scale modernisation of the electricity system. In addition to the 125 megawatts to be developed by the Transmission System Operator, the connection of a further 150 megawatts of privately operated energy storage has already been approved. These facilities are also expected to become operational during 2027. In addition, the state-owned EAC is implementing its own projects with a combined capacity of 180 megawatts:
- 80 megawatts in the Dhekelia area;
- 100 megawatts in the Moni area.
Some of these facilities are expected to begin operating before summer 2027. As a result, by the end of 2027, the combined capacity of electricity storage systems in Cyprus will reach several hundred megawatts, representing the largest upgrade to the island’s energy infrastructure in recent years. These projects are also viewed as an important stage in preparing Cyprus for a further increase in the share of renewable energy. According to Eurostat, renewable sources accounted for 27.5% of all electricity generated on the island in 2025. However, due to the lack of storage systems, a significant share of solar generation could not be fully utilised.
Will Electricity Bills Decrease?
The Energy Minister noted that the installation of several hundred megawatts of storage capacity could theoretically lead to a slight reduction in electricity costs. However, no specific promises regarding tariffs have been made so far.
The main objective of the project remains to improve the reliability of the electricity supply and reduce curtailment of solar generation.
Until the first storage systems are commissioned, the situation is unlikely to change significantly. Owners of residential solar systems and commercial photovoltaic parks are expected to continue facing generation restrictions at least until summer 2027. For other consumers, the most challenging period will remain the evening hours during the hot summer months, when demand on the electricity system reaches its highest levels.
The launch of utility-scale energy storage systems will become one of the key stages of Cyprus’ energy reform. It will allow the island to make more efficient use of solar power, strengthen the resilience of the electricity system, and create the conditions for the further development of renewable energy.