Half of Renewable Energy Goes to Waste. Cyprus Rescues the System with Massive Batteries
The Cypriot transmission system operator has issued preliminary grid connection conditions for eight large-scale energy storage projects. Investments totaling 231 MW of power and 570 MWh of capacity are to be implemented in a fully market-based model, which—given the current scale of renewable energy curtailment on the island—has become an exceptionally profitable strategy. Developers have already submitted the required documentation to obtain final permits.
A response to massive curtailments
The most important information for the market is that all eight projects will operate as stand-alone systems, built without any form of public support or subsidies. Experts emphasize that the lack of subsidies is not a barrier, but rather proof of the market maturity of the technology under specific island conditions.
At present, Cyprus is struggling with a huge oversupply of green energy. Due to grid constraints, the operator is forced to curtail nearly half of annual renewable energy generation. In such conditions, energy storage systems become a natural element of system optimization—absorbing cheap energy and releasing it back to the grid during periods of peak demand.
Who is building in Cyprus?
Among the leaders in the race for Cypriot grid connections are both private developers and a state-owned giant:
Elestore Ltd – the most advanced player, already holding a full set of construction permits for five systems (each with a capacity of 12 MW and 40 MWh).
Electricity Authority of Cyprus – the state-owned energy company planning the largest single unit in this group: 80 MW / 160 MWh.
H.E.S.S Ltd and Havvneve Storage Ltd – developers planning 120 MWh and 100 MWh of capacity respectively.
According to data from the end of last year, Cyprus had more than 1.1 GW of installed renewable energy capacity, of which 957 MW came from photovoltaics. Such a high level of solar generation saturation in a relatively small, isolated system makes the development of energy storage a necessary condition for the further growth of the sector.