Energy Minister Michael Damianou said on Wednesday that Cyprus is expected to have “several hundred megawatts” of energy storage capacity installed by the end of 2027, allowing greater use of renewable energy and strengthening the island’s electricity system.

Speaking before a high-level workshop organised by the Cyprus Employers and Industrialists Federation (OEV) on reducing electricity costs, Damianos said battery storage would enable more solar energy to be integrated into the grid while improving overall system resilience.

He also confirmed that the government is examining whether to invoke Article 34 of the Electricity Market Regulation Law, following a request from the Cyprus Energy Regulatory Authority (Cera), which would allow for the rapid installation of conventional electricity generation units if required.

However, he stressed that the issue was being assessed collectively by the energy ministry and Cera, noting that the Cyprus Transmission System Operator (TSO) has already indicated there should be no electricity adequacy problems this summer.

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Asked whether the measure could be implemented immediately, Damianos said this would be difficult.

“The transmission system operator has stated that there will be no adequacy problems this summer, so this is something we will examine together with the ministry and Cera,” he said.

On energy storage targets, Damianos said the TSO has already signed contracts for its own battery storage units, which are expected to arrive in Cyprus in January 2027.

He said 120MW of TSO-owned storage capacity is expected to be installed before the summer of 2027.

The Electricity Authority of Cyprus (EAC) has also made progress with its storage projects, while private developers have already secured connection terms for more than 150MW of battery capacity.

“I believe that by the end of 2027 we will have several hundred megawatts of storage in the system, allowing greater penetration of renewable energy, particularly solar power, into our energy mix, which will also help improve adequacy,” he said.

He cautioned, however, that storage alone cannot solve Cyprus’ electricity security challenges.

“There are days when there is no sunshine. If photovoltaic systems are not generating electricity, there will be no energy available to charge batteries,” he said.

Nevertheless, he added that storage would significantly reduce renewable energy curtailments, including for household solar systems, making it “a step in the right direction”.

On high electricity prices, Damianos said the main challenge lies in the electricity distribution and settlement system.

“It is a major issue which we expect to resolve,” he said, describing the matter as highly technical.

Asked about fuel prices following developments in the Middle East, Damianos said they remain subject to international market conditions.

“There are always fluctuations depending on developments in the Middle East. Prices reached very high levels before easing somewhat,” he said, adding that the issue is driven by external factors beyond Cyprus’ control.

The workshop, hosted by OEV, brought together government officials, regulators and energy stakeholders to discuss practical ways of reducing electricity costs.

OEV president George Pantelides said the organisation’s primary objective was to identify practical measures that would lower energy costs for businesses and, by extension, consumers.

He added that participants would also assess the effectiveness of the competitive electricity market, nine months after its launch, and examine alternative energy options including natural gas, hydrogen and nuclear energy.

Earlier, Damianos also marked the 52nd anniversary of the 1974 coup, describing it as “a sad day for our country” and “the beginning of the twin crimes of the coup and the invasion”, while paying tribute to those who defended democracy.