€50 Million to Be Allocated for Energy Storage Systems in Cyprus

In 2026, Cyprus plans to allocate €50 million for the installation of energy storage systems in three regions of the island. This was revealed during the discussion of the Transmission System Operator (TSO) budget in parliament.

The total TSO budget for the 2026 fiscal year is €67.3 million, of which €49 million for storage projects will come in the form of an EU grant.

Battery complexes (containerized battery arrays) will be located near Electricity Authority of Cyprus substations in:

• Paphos
• Athalassa (Nicosia district)
• Larnaca

The goal of the project is to reduce interruptions in the operation of domestic and commercial solar installations and to stabilize the power grid.

Due to surplus production during low-demand hours, the operator must disconnect solar panels to protect the grid.

Restrictions primarily affect large solar parks, followed by private households. Some owners have reported up to eight disconnections per month, leading to financial losses.

TSO uses specialized software that calculates in real-time how much "green" energy can be safely fed into the grid.

According to TSO representative Costas Mesimeris, tenders have already been announced, and contracts may be signed in March following the approval of the budget by the parliamentary plenary.

The project implementation period is approximately 8 months after the signing of contracts.

The storage systems are expected to be operational by the winter of 2026 (they will likely not be ready for the summer peak season).

As of January 2026, the Photovoltaics for All subsidy program has ended, and classic net-metering is no longer available for new applicants.

The energy system is gradually transitioning to a self-consumption model with mandatory use of battery storage systems.