4 March 2025
Cyprus will begin implementing renewable energy storage systems in 2026 at the earliest, Energy Minister George Papanastasiou announced during parliamentary discussions on Tuesday, addressing the country’s growing need to manage excess green energy production.
The planned battery storage infrastructure, to be installed between 2026 and 2030, will have a total capacity of 160 megawatts with the capability to store renewable energy for 2-3 hours, Papanastasiou told the House Energy Committee.
“We are trying to build a network that incorporates both production and storage capabilities,” the minister stated, noting that storage solutions have become necessary due to renewable energy overproduction without corresponding consumption patterns.
The announcement came during an extraordinary committee session examining proposed amendments to the Electricity Market Regulation Law of 2025. If approved, the legislation would allow the Transmission System Operator to develop storage systems under specific conditions to increase renewable energy capacity in the transmission network, reduce energy curtailment, and ensure electrical system balancing.
Multiple stakeholders presented perspectives during the session. The Cyprus Energy Regulatory Authority (CERA) representatives reported establishing a regulatory framework for energy storage in 2019, followed by market rules approval in 2021. The Cyprus Transmission System Operator has received 13 storage applications totaling 224 megawatts capacity, with eight applications processed and five under review.
Electricity Authority of Cyprus (EAC) Chairman George Petrou announced ongoing tender processes for installing storage systems at the Dhekelia power station, with company proposals expected by month-end.
Industry representatives raised concerns about existing programs. Electricity Market Association Chairman George Chrysochos claimed current government subsidy schemes exclude significant market segments while favoring the EAC, describing it as “monopolistic practices and unfair competition.” Consumer associations emphasized avoiding additional costs for ratepayers.
Renewable Energy Association President Fanos Karantonis advocated for hydrogen storage technology investment, noting significant European Union funding in this direction, while the Cyprus Biogas Association highlighted that existing storage schemes focus exclusively on battery technology.
Parliamentary representatives emphasised the need for reduced electricity costs. Energy Committee Chairman and DISY MP Kyriacos Hadjiyiannis called for a green energy storage strategy prioritizing lower energy costs and stressed that electricity market liberalisation “cannot be delayed even by a day.”
AKEL MP Costas Costa characterised Cyprus as “the only country in the world where thousands of megawatt-hours go unused due to lack of centralised green energy storage systems,” adding: “During the day we waste megawatt-hours because we lack storage, and at night we are one step away from blackouts.”
The parliamentary committee indicated it would request the establishment of an investigative committee to examine electricity pricing issues, reflecting growing concerns about energy costs among consumers and policymakers.
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