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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.

LVMH Revenue Rises, But China Weakness Continues To Weigh On Luxury Giant

A Softer Quarter Exposes The Limits Of Luxury’s Recovery

LVMH, the world’s largest luxury group and parent of Louis Vuitton, Dior, Celine and Hennessy, reported revenue of €18.5 billion in the three months to the end of September, underscoring both the scale of its business and the pressure building across parts of the luxury market.

The company’s revenue rose 1.2% year on year in the third quarter, following a 0.1% increase in the second quarter and a 5.9% decline in the first. The trajectory points to stabilization, but not yet to a convincing rebound.

Organic Growth Misses Expectations

Organic sales growth, which strips out currency effects and portfolio changes, slowed to 1% in the third quarter from 3% in the previous quarter. That result fell short of market expectations and reinforced concerns that the luxury cycle remains uneven.

For the first nine months of the year, LVMH generated sales of €57.1 billion, with organic growth of 2%.

In its statement, the company highlighted the breadth of its portfolio, saying that diversification continues to provide resilience in an uncertain geopolitical and economic environment. That remains one of LVMH’s defining strengths: when one category weakens, another can help offset the downturn.

China Remains The Key Pressure Point

LVMH said sales performed well in the United States, Europe and Japan, but conditions in China remained less favorable. That matters because the country has long been one of the most important growth engines for global luxury brands.

The fashion and leather goods division, LVMH’s most closely watched unit, saw organic sales fall 5% as weaker demand in China weighed on performance. Deutsche Bank said the decline was steeper than the roughly 2% drop expected by analysts.

The segment had delivered its first organic sales gain in two years in the previous quarter, making the latest retreat a notable setback.

Brand Equity Faces A Test In China

The quarter also highlighted the reputational risks facing global brands in China. Louis Vuitton drew criticism after suing local tea company Molly Tea over logo copying. Although the company won the case, the dispute sparked social media backlash and boycott calls, adding another layer of pressure to an already fragile environment.

For a company built on scarcity, aspiration and brand discipline, perception is an asset as valuable as inventory. In a market as digitally connected as China, that asset can shift quickly.

Mixed Performance Across The Portfolio

Not every division weakened. LVMH’s selective retailing business, which includes Sephora, posted an 8% organic sales increase. Watches and jewellery, along with wines and spirits, both recorded 6% organic gains.

That broad mix is precisely what has historically given LVMH an advantage over rivals: it can absorb softness in one category without relying on a single growth driver.

Analysts See A Longer Recovery Ahead

Deutsche Bank analysts said the results could lead to further cuts in earnings forecasts for the second half of 2026 and 2027. They added that it is difficult to see what could improve investor sentiment in the near term.

Still, the bank framed the weakness as cyclical rather than structural. In its view, recovery is taking longer because Chinese demand remains subdued, but the problem does not appear to reflect a permanent deterioration in the brand franchise. Analysts said ongoing brand initiatives are beginning to show results, though improvements are likely to remain gradual.

Investor Pressure Continues To Mount

LVMH’s share price has fallen nearly 40% since the start of the year. In September, L’Oréal overtook the group as France’s most valuable listed company, a symbolic shift that captures how sharply sentiment has changed.

Shares in LVMH were down more than 1.6% in Paris around 10 a.m. CEST following the release.

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