Cyprus is poised to introduce large-scale renewable energy storage solutions by 2026, a move aimed at addressing the nation’s increasing demand for effective energy management. Energy Minister George Papanastasiou confirmed the development during a parliamentary session on Tuesday, underscoring the urgency of integrating storage solutions to counteract excess green energy production.
The ambitious initiative, scheduled for implementation between 2026 and 2030, will see the installation of battery storage infrastructure with a total capacity of 160 megawatts, capable of storing renewable energy for up to three hours. “We are striving to build a network that harmoniously integrates both production and storage,” Papanastasiou stated, emphasizing that without adequate storage, renewable energy overproduction leads to inefficiencies in the grid.
The announcement coincided with an extraordinary session of the House Energy Committee, which deliberated on proposed amendments to the Electricity Market Regulation Law of 2025. If enacted, the legislation would authorize the Transmission System Operator to develop storage systems under specific conditions, enhancing renewable energy penetration, reducing energy curtailment, and ensuring the stability of the electrical grid.
Stakeholder Perspectives and Market Developments
Representatives from the Cyprus Energy Regulatory Authority (CERA) outlined the regulatory landscape, noting that a framework for energy storage was established in 2019, followed by market rules approval in 2021. To date, the Cyprus Transmission System Operator has received 13 applications for storage projects, totaling 224 megawatts of capacity, with eight under review and five currently being processed.
The Electricity Authority of Cyprus (EAC) is also making strides, with Chairman George Petrou announcing active tenders for storage system installations at the Dhekelia power station. Industry players are expected to submit proposals by the end of the month.
However, concerns about market fairness were raised by industry representatives. Electricity Market Association Chairman George Chrysochos criticized existing government subsidy schemes, arguing they disproportionately favor the EAC and create an uneven playing field. Meanwhile, consumer advocacy groups stressed the importance of ensuring that energy storage initiatives do not translate into higher electricity bills for ratepayers.
Calls for a Diversified Energy Storage Strategy
Fanos Karantonis, President of the Renewable Energy Association, advocated for investments in hydrogen storage technology, citing significant European Union funding directed toward this sector. Similarly, the Cyprus Biogas Association voiced concerns over the exclusive focus on battery storage, calling for a more diversified approach to energy storage solutions.
Political and Economic Implications
Parliamentary representatives underscored the critical need for reducing electricity costs. Energy Committee Chairman and DISY MP Kyriacos Hadjiyiannis urged the government to adopt a strategic approach to green energy storage that prioritizes affordability. He further emphasized that any delays in electricity market liberalization would be unacceptable.
AKEL MP Costas Costa offered a stark assessment, stating that Cyprus remains “the only country in the world where thousands of megawatt-hours go to waste due to the absence of centralized green energy storage systems.” He warned that while renewable energy is wasted during the day, the nation teeters on the brink of blackouts at night.
In response to mounting concerns about energy affordability, the parliamentary committee announced plans to request the establishment of an investigative body to examine electricity pricing issues, signaling a growing determination among policymakers to ensure fair and sustainable energy solutions for Cyprus.
With the introduction of energy storage solutions on the horizon, Cyprus is taking a crucial step toward a more resilient and efficient renewable energy landscape, paving the way for a greener and more cost-effective future.
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