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Cyprus Must Build Energy Storage Now, Says Cyprus Institute President

Cyprus cannot rely on diesel or natural gas as a long-term solution to its energy needs, according to Cyprus Institute president Stavros Malas, who argued that the country must pair renewable generation with durable energy storage if it is serious about lowering costs and strengthening energy security.

A Testbed For Cyprus’ Energy Future

Malas made the remarks on Friday during a visit by Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou to the Cyprus Institute’s PROTEAS research facility in Pentakomo. He described PROTEAS as “a miniature version of Cyprus as it should be,” pointing to its role as a real-world platform for testing technologies in renewable energy production and storage.

For an island economy with no interconnection to larger power systems, the challenge is not only how electricity is generated but also how it is stored and delivered when the sun is not shining. Malas said the transition must begin now “if we do not want to remain a country producing very expensive electricity.”

“Neither the fuel we have now, diesel, nor natural gas are long-term solutions,” he said.

Why Storage Matters As Much As Generation

The message reflects a broader reality facing energy markets worldwide: renewable generation alone is not enough. Without storage, solar and wind power can struggle to provide a stable, around-the-clock supply. For Cyprus, that issue is magnified by geography, limited grid flexibility and the costs of imported fuels.

Malas’ argument is that the country should treat storage as a core part of energy strategy, not an afterthought. In practical terms, that means investing in technologies that can capture excess power during periods of high production and release it when demand rises.

A Living Example Of Innovation

Damianou described PROTEAS as “a living example of what Cyprus wants to become,” framing the facility as a place where advanced technologies can be tested and translated into broader commercial and industrial use.

He said the site shows that Cyprus can evolve beyond the role of a passive energy consumer and instead become a destination for innovative firms developing solutions for a changing energy landscape.

“The reason I am here is to see and examine, as a government, these innovative solutions being implemented at PROTEAS,” Damianou said.

Research With Commercial And Climate Relevance

During the visit, the deputy minister toured the facility and received a briefing on its work, including research tied to climate change mitigation. He was accompanied by the deputy ministry’s director of research and innovation, Constantinos Kleovoulou.

PROTEAS is the Cyprus Institute’s experimental platform for the research and demonstration of renewable energy technologies, with a particular focus on concentrated solar thermal energy and energy storage. The Pentakomo site allows researchers to test solar technologies under Cyprus’ specific climatic conditions, with applications that could extend to other regions with similarly high solar potential.

The institute says its solar thermal research has also attracted interest from private companies, some of which have installed heliostats at the facility to support research and innovation efforts. That commercial interest suggests a wider opportunity for Cyprus: to turn its natural advantages into a platform for clean-tech development, investment and exportable expertise.

Cyprus Business Electricity Prices Rank Among The EU’s Highest

Electricity prices for a defined group of non-household consumers in Cyprus reached €0.23 per kilowatt-hour in the first half of 2026, placing the country among the most expensive in the EU, according to Eurostat.

The rate matched Italy and exceeded the EU average of €0.18. Ireland recorded the highest price at €0.27 per kilowatt-hour.

The figures cover non-household consumers with annual electricity consumption of between 500 and 2,000 megawatt-hours, rather than all businesses or households.

EU Electricity Prices Continued To Fall

Across the EU, average prices for this consumer group declined by 2% compared with the second half of 2025 and were 5.4% lower year on year.

The lowest rates were recorded in Finland (€0.09 per kWh) and Sweden (€0.12), followed by Denmark, Spain and Portugal, all at €0.13.

Prices Fell In Most Member States

Electricity prices declined year on year in 19 EU countries during the first half of 2026. Luxembourg recorded the largest fall, at 23.8%, followed by Czechia (11.9%) and Greece (11.8%).

Prices increased in eight member states, led by Sweden (18.8%), Finland (18.7%) and Bulgaria (14.2%). Despite the sharp increases, Finland and Sweden continued to have the lowest electricity prices in the bloc.

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