Half of renewable energy is wasted. Cyprus is saving the system with massive batteries

The Cypriot transmission system operator has issued preliminary grid connection conditions for eight large-scale energy storage projects. Investments with a total capacity of 231 MW and 570 MWh are to be developed fully on a market basis, which—given the current scale of renewable energy curtailment on the island—has become an exceptionally profitable strategy. Developers have already submitted the necessary documentation to obtain final permits.

A response to massive curtailment

The most important takeaway for the market is that all eight projects are to operate as standalone systems, built without any public subsidy. Experts emphasize that the lack of support is not a barrier, but rather proof of the technology’s market maturity in specific island conditions.

Currently, Cyprus faces a significant oversupply of green energy. Due to grid constraints, the operator is forced to curtail nearly half of annual renewable generation. In this context, energy storage becomes a natural system optimization tool—absorbing cheap energy and feeding it back into the grid during peak demand.

Who is building in Cyprus?

Among the key players are both private developers and a state-owned utility:

· Elestore Ltd – the most advanced player, already holding full construction permits for five systems (each 12 MW / 40 MWh)
· Electricity Authority of Cyprus – the state energy company, planning the largest single unit: 80 MW / 160 MWh
· H.E.S.S Ltd and Havvneve Storage Ltd – developers planning 120 MWh and 100 MWh respectively

According to data from the end of last year, Cyprus had over 1.1 GW of installed renewable capacity, of which as much as 957 MW was solar. Such a high concentration of solar generation in a relatively small, isolated system makes the development of energy storage a prerequisite for further sector growth.