Electricity Storage Emerges As A Key Lever To Cut Costs And Unlock More Renewable Energy In Cyprus

Electricity storage could play a key role in reducing power costs and improving the use of renewable energy in Cyprus, according to the Electricity Market Association.

In a statement, the association also expressed concern over delays in the issuance of Connection Terms by the Distribution System Operator, warning that bureaucratic procedures are discouraging multimillion-euro investments and ultimately driving up costs for consumers.

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Production Curtailments Are Undermining The System

“One of the most significant problems facing Cyprus’ electricity system today is production curtailment,” the association said.

According to the group, curtailments at large photovoltaic parks reached as high as 66% in April. It added that electricity lost from residential solar systems between January 1 and May 31 could have covered the annual consumption of around 7,500 households.

Curtailments occur when solar generation exceeds electricity demand or the grid’s capacity to absorb additional power, resulting in clean, low-cost energy being wasted.

Why Storage Matters For Consumers

Battery storage allows households and businesses to retain and use a larger share of the electricity they generate, reducing reliance on the grid and improving the return on their solar investment.

Beyond strengthening the electricity system, the association said, wider deployment of storage could also lower energy bills for consumers while helping the grid manage intermittent renewable generation more efficiently.

Regulatory Delays Are Slowing Investment

Despite growing demand for storage, progress in Cyprus remains slow because of lengthy administrative procedures, the association said. It argued that delays in issuing Connection Terms by the Distribution System Operator, which operates under the Cyprus Electricity Authority, raise concerns about the transparency and efficiency of the process.

According to the association, those delays discourage multimillion-euro investments, limit the use of lower-cost renewable electricity and preserve market distortions.

“Ultimately, they pass higher costs on to consumers,” the statement concluded.

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Mercedes-Benz Posts Higher Profit Despite China Slowdown

by THEFUTURE.TEAM

July 29, 2026

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

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Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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