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Cyprus Launches First Utility-Scale Energy Storage Projects To Strengthen The Power Grid

Energy storage is set to play a central role in Cyprus’ electricity system, helping the country manage renewable energy more efficiently, reduce curtailment from solar and other clean sources, and strengthen grid stability.

Speaking after the signing of an agreement between the Cyprus Transmission System Operator and CYTA for the supply and installation of the country’s first large-scale energy storage systems, Energy, Commerce and Industry Minister Michalis Damianos described the project as a major step in modernising the national power network.

A Strategic Step In Modernizing The Power System

Damianos said the initiative marks an important milestone in Cyprus’ broader effort to upgrade its energy infrastructure.

“With its implementation, we are entering a new phase in strengthening the resilience and reliability of our island’s electricity grid,” he said. “These storage projects will materially improve the management of renewable energy production, reduce the curtailment of electricity from renewables, and reinforce system stability.”

Energy Transition Requires Time, Coordination And Execution

According to the minister, the energy transition is a complex process that requires careful planning, technical coordination and sustained cooperation among all stakeholders. Against that backdrop, Tuesday’s agreement represents a significant step in implementing Cyprus’ national energy storage strategy and advancing the country’s broader green transition.

Damianos also praised the Transmission System Operator for its planning and execution, while commending CYTA for taking responsibility for the project. “Collaboration among public organizations is a cornerstone for delivering projects that serve the public interest and advance our national energy and climate goals,” he said.

Looking ahead, he reaffirmed the government’s commitment to expanding renewable energy through a more efficient, reliable and lower-emission electricity system.

Three Sites, One Systemic Objective

Stavros Stavrinos, executive director of the Cyprus Transmission System Operator, said the project stems from Regulatory Authority of Energy Cyprus decision 217/2025, issued on June 18, 2025, which instructs the operator to deploy storage systems at three existing transmission substations.

Funding for the systems is expected to come from the EU cohesion policy programme Thalia 2021-2027. For that purpose, the operator is working closely with the Control Directorate of the Ministry of Transport, Communications and Works, which acts as the intermediate body.

Under the project, a 40 MW / 80 MWh storage system will be installed at Athalassa substation in the Nicosia district, while two additional 40 MW systems, with 160 MWh of storage each, will be deployed at the Anatoliko and Free Industrial Zone substations in the Paphos and Larnaca districts, respectively.

Why Location Matters

Stavrinos explained that the three substations were selected to maximise the operational value of the storage systems.

Their direct connection to the transmission network will allow the batteries to provide the required reserves without restrictions, while supporting smoother electricity flows and reducing congestion during periods of high demand.

He added that the project will not affect existing renewable energy developments, whose planning and grid connection work are already included in the transmission system’s ten-year development plan.

Preparing For A Grid Dominated By Renewables

Stavrinos said the role of storage is becoming more urgent as Cyprus’ installed photovoltaic capacity has surpassed 1,040 MW, compared with the average national demand of about 650 MW.

“This level of penetration requires flexible resources,” he said. “Storage gives the operator another tool to ensure the system can respond to demand in a reliable way, which is part of our statutory responsibility.”

He also pointed to the fact that renewable generation already covers more than 60% of demand for several hours on many days, and in some half-hour periods reaches 70% over the course of the year. That is a significant achievement, he said, but it also underscores the need for new balancing mechanisms that can protect system stability as renewable penetration rises further.

Grid-Forming Technology Signals A New Phase

One of the most notable elements of the project is that one of the storage systems will feature grid-forming technology, a capability Stavrinos described as a step toward introducing advanced solutions into Cyprus’ power system.

He noted that this technology was developed to support isolated electricity systems such as Cyprus, where flexibility and resilience are especially valuable. For the operator, he said, it represents another major technical challenge, but also a strategic opportunity.

Private Investment Can Advance Alongside Public Infrastructure

Alongside the state-backed project, privately developed storage facilities are also moving forward. According to Stavrinos, the operator has already issued connection terms for independent storage systems with a combined capacity of 60MW and 190MWh, with several projects now at an advanced stage.

“Our conclusion is clear: all storage projects are welcome and necessary if Cyprus is to meet European and national renewable targets,” he said. “They will significantly reduce renewable curtailment and, by extension, emissions. Ultimately, the consumer should benefit through lower electricity costs and improved system performance.”

Implementation is expected to begin shortly, with an estimated eight-month period before the systems enter the execution phase.

CYTA Sees Public Value And Institutional Confidence

CYTA chair Maria Tsiakka said the company will deliver the project through an open and transparent process designed to benefit citizens, support technological progress and contribute to sustainable development.

She added that the assignment reflects the confidence placed in CYTA to manage complex national infrastructure projects while reinforcing its role in initiatives that create value for the wider economy. “Our participation also reflects CYTA’s active role in initiatives that create real value for the economy,” she said.

Tsiakka said CYTA will work closely with all stakeholders to ensure the project is delivered on schedule and meets the country’s future energy needs.

Cyprus Promotes Ship Registry In Asia As Fleet Grows To 25-Year High

Cyprus is stepping up efforts to attract international shipowners, with Shipping Deputy Minister Marina Hadjimanolis holding high-level meetings in China and Japan as the country’s ship register reaches its strongest level in 25 years.

Running from October 14 to 29, the Asian mission focuses on expanding commercial ties, promoting the advantages of the Cyprus flag and strengthening cooperation with shipowners, shipbuilders and maritime authorities.

China Meetings Target Shipowners And Industry Leaders

In Shanghai, Hadjimanolis met Wang Qian, vice-director of the Shanghai Pudong New Area Commission of Commerce and Shipping Service Office, ahead of the North Bund International Shipping Forum on October 20–21. Organisers expect around 4,000 participants from more than 50 countries and regions, with discussions covering international shipping, maritime safety, financing, insurance, digitalisation and the transition to cleaner fuels.

The minister also met representatives of Dalian Trawind Shipping and Fortuna Shipbrokers Inc. to present the Cyprus registry’s advantages and explore registration opportunities for vessel owners. On October 20, she is scheduled to speak at the 10th Annual Capital Link International Shipping Forum in Pudong, joining a ministerial roundtable on international maritime leadership.

A visit to Zhoushan is also planned for the naming ceremony of Kypros Island, a new vessel for the Cyprus register owned by Safe Bulkers. Launched in June at the Tsuneishi shipyard on Xiushan Island, the 81,200-deadweight-tonne methanol dual-fuel bulk carrier is scheduled for delivery at the end of October. According to the Zhejiang Maritime Safety Administration, sea trials were due to take place between October 11 and 16.

Japan Engagements Strengthen Maritime Ties

Before travelling to China, Hadjimanolis met Japan’s Parliamentary Vice-Minister for Land, Infrastructure, Transport and Tourism, Kenta Aoshima, in Tokyo on October 16. Her programme also included meetings with senior representatives of Shoei Kisen Kaisha, Nihon Shipyard, NYK Line, ITOCHU Corporation and SSY Projects, focusing on cooperation with Japanese shipowners, shipbuilders and shipping operators.

At the 5th Annual Capital Link Japan Maritime Forum, held at the Tokyo American Club, Hadjimanolis discussed maritime leadership, competitiveness, policy and international cooperation with Capital Link founder and president Nicolas Bornozis. Other sessions examined Japan’s shipbuilding strategy, new-vessel financing and the development of ammonia-powered ships.

The Tokyo programme followed a Cyprus Ship Registry reception on October 15 for representatives of Japan’s maritime and business communities. Hadjimanolis outlined the country’s shipping services and regulatory framework, while Polys Hajioannou, chief executive of Safe Bulkers and president of the Cyprus Union of Shipowners, delivered the opening remarks.

Registry Reaches Highest Level In 25 Years

At the reception, Hadjimanolis said the Cyprus Ship Registry had grown by 27% since September 2023, reaching its highest level in a quarter of a century. She attributed the expansion to efforts to improve competitiveness, simplify administrative procedures and provide more responsive services to international shipowners.

Cyprus’s inclusion on the White Lists of the Paris and Tokyo Memoranda of Understanding was another point highlighted by the minister. These lists reflect the safety and inspection performance of ships flying a national flag.

Existing commercial links with Japan include Safe Bulkers’ announcement in May of four Japanese-built dry bulk vessels scheduled for delivery in 2029.

South Korea Next On The Maritime Agenda

Hadjimanolis’ mission will continue in South Korea, where she is expected to attend the 2026 World Maritime Day Parallel Event and Korea Maritime Week alongside International Maritime Organization Secretary-General Arsenio Dominguez and government representatives from several countries.

Her programme will also include discussions on implementing international maritime conventions and bilateral talks aimed at strengthening Cyprus’s shipping ties with South Korea.

The Asian outreach comes as maritime centres compete for shipowners amid geopolitical uncertainty, fleet renewal and pressure to reduce shipping emissions. For Cyprus, the strategy combines promotion of its registry with closer relationships across Asia’s shipbuilding and shipping sectors.

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