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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.

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.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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