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Cyprus To Add 125MW Of Battery Storage Before Summer 2027

Electricity storage batteries are expected to arrive in Cyprus in January 2027, with installation scheduled to be completed before next summer’s peak demand season, Energy Minister Michael Damianos said on Sunday.

Storage Capacity Set To Expand Grid Flexibility

Damianos said contracts have already been signed with the supplier and the Transmission System Operator (TSO) for the battery storage project.

Once operational, the facilities will add 125 megawatts (MW) of storage capacity to the national grid, allowing more renewable electricity to be stored instead of being curtailed during periods of excess generation. The minister said the system is expected to be operational before the summer of 2027.

Addressing Evening Demand

Cyprus currently has just over 1,000MW of conventional electricity generation, which Damianos said is generally sufficient during daytime hours. Demand becomes more challenging after sunset, when solar generation falls while electricity consumption, driven largely by air-conditioning, remains high.

He said battery storage will allow electricity generated during the day to be used during the evening peak.

Additional Projects Under Development

Damianos said approvals have also been granted for 150MW of privately owned battery storage projects, which are expected to become operational during 2027.

The Electricity Authority of Cyprus (EAC) is developing an additional 180MW of storage capacity. Two projects, with capacities of 80MW and 100MW, are expected to be completed before next summer.

According to the minister, several hundred megawatts of battery storage capacity are expected to be connected to the national grid by the end of 2027.

Power Supply Before The Batteries Arrive

Asked how electricity demand would be managed before the storage projects are completed, Damianos said the Transmission System Operator considers the system capable of meeting demand under normal operating conditions.

He said last week’s power supply disruptions were caused by a fault at one of the EAC’s generators and that both the utility and the TSO are working to maintain system reliability with the existing generation capacity.

Damianos added that, provided there are no unexpected outages, the electricity system is expected to remain stable, with the period immediately after sunset continuing to pose the greatest challenge.

Morningstar DBRS Upgrades Cyprus Outlook To Positive, Citing Strong Fiscal Performance

Cyprus President Nikos Christodoulides welcomed the confirmation of the country’s “A” credit rating and an upgrade in its outlook, saying the decision reflects the economy’s momentum and prospects.

In a post on X, Christodoulides said Cyprus is continuing on an upward path while advancing reforms aimed at strengthening competitiveness, resilience and credibility.

Fiscal Discipline Supports Investor Confidence

The rating decision points to the role of fiscal policy in Cyprus’ improving credit profile. Credit ratings remain an important indicator of a country’s institutional strength, borrowing capacity and macroeconomic stability.

For Cyprus, stronger public finances could support investor confidence and improve access to financing over time. A stronger credit outlook may also give the government more flexibility to support economic growth while maintaining fiscal discipline.

Reforms And Growth Create More Policy Space

Christodoulides said responsible fiscal policy and the government’s broader economic strategy are producing measurable benefits, including more and better-paid jobs, higher disposable income and new investment.

He added that these improvements are creating greater policy space to address citizens’ needs while continuing reforms designed to strengthen the economy.

Government Plans To Maintain Course

Christodoulides said his administration would continue pursuing its economic strategy with a focus on responsibility, consistency and reforms aimed at building a more competitive and resilient economy.

The latest rating action adds to recent evidence of improved fiscal conditions and Cyprus’ stronger position in international financial markets.

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