Government Approves €207.4 Million Supplementary Funding Amid Strategic Budget Adjustments

by THEFUTURE.TEAM

December 5, 2025

The House is set to review additional credits totaling €207.4 million in the coming days. Today, the first supplementary budget for 2025 was formally submitted to Parliament, outlining a fiscal response to increased departmental needs. According to the Ministry of Finance, these adjustments aim not only to address heightened operational demands but also to bolster the efficiency of public administration through strategic staffing enhancements.

Supplementary Budget Credits and Strategic Positioning

The supplementary budget covers essential areas, including the creation of new positions designed to strengthen the state apparatus. Notably, among the changes are the establishment of two new Assistant Supervisors in the Specialized Independent Services. In the Ministry of Defence, structural adjustments include the creation of nine Colonel positions, 19 Lieutenant Colonel roles, 12 Major positions, and 34 First-Class Sergeant roles. Concurrently, 39 Lieutenant positions, 13 Corporal roles, and 22 hourly wage positions have been abolished to maintain a fiscally neutral balance.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Formation of New Strategic Leadership Roles

Following the Cabinet’s decision to establish the General Directorate of Civil Protection, two pivotal roles will be introduced: one General Director and one National Coordinator, both tasked with enhancing the nation’s emergency preparedness. The overall supplementary budget remains fiscally balanced with offsetting savings amounting to €207.4 million, ensuring that the 2026 staffing structure remains consistent with projections.

Comprehensive Government Budget Amendments

In parallel, the Cabinet approved key modifications to the 2026 state budget. These adjustments, which will be integrated into the budget discussion beginning on the 15th at Parliament, involve reallocating funds, transferring resources among departments, and recalibrating personnel configurations. Specifically, the reforms include the creation of 153 new or additional positions, the elimination of 153 public service roles along with 52 vacancies in hourly wage positions, and the renaming or upgrading of select positions and organizational structures.

Fiscal Discipline and Operational Savings

The Ministry of Finance assures that these revisions will not alter the overall employment landscape. In fact, the reduction of 14 permanent roles in the 2026 budget relative to 2025 remains constant. Provisions are also made for establishing the General Directorate of Civil Protection within the Ministry of Interior, with the impending transfer of the Fire Service and select Forestry Department functions under its purview. Moreover, adjustments to public service allowances are set in accordance with the recently signed agreements between employer organizations and labor unions.

Robust Savings Towards Fiscal Stability

The government expects significant savings through these budget modifications, with anticipated reductions of €46.3 million in 2026, €57.1 million in 2027, and €56.4 million in 2028. The overall fiscal balance remains static as the total ceiling for the 2026 budget is maintained at €10.7 billion. Savings are largely attributed to changes in the overtime payment processes for seconded staff at OKYPI, where overtime will now be managed directly by the organization rather than the Ministry of Health.

The Future Forbes Realty Global Properties

Cyprus Moves To Unlock More Solar Power With First Large-Scale Battery Storage Contracts

by THEFUTURE.TEAM

June 23, 2026

Cyprus is preparing to sign the first contracts for large-scale electricity storage batteries on Tuesday, a project expected to improve the grid’s ability to manage growing renewable energy production and reduce the curtailment of solar power.

A Long-Awaited Grid Fix

Energy Minister Michalis Damianos said the agreements will cover 120MW of centralised storage capacity that will be managed by the transmission system operator. The project, valued at €50 million, is expected to deliver the batteries in January 2027, with installation scheduled to take place over the following two to three months.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

According to Damianos, the system should become operational by the summer of 2027, a period when both electricity demand and solar generation typically peak. He said the storage facilities will allow energy currently lost due to a lack of storage capacity to be retained and used when needed.

Why Storage Has Become Essential

The batteries are designed to absorb excess renewable electricity during periods of overproduction and release it back into the system when demand increases. Their introduction is expected to reduce the curtailments currently affecting solar generators and improve the use of renewable energy already being produced across the island.

Former Energy Minister George Papanastasiou told Sigma that planning for the project began in 2023 in cooperation with the European Commission. The objective was to address growing losses from renewable energy generation that the electricity network cannot currently absorb.

By the end of May 2026, approximately 160,000 megawatt hours of renewable energy had been lost through curtailments affecting residential photovoltaic systems, commercial solar parks, and wind installations. According to Papanastasiou, renewable electricity production exceeds demand during several hours of the day, leaving part of the output unable to be utilised.

The Cost Of Growing Faster Than The Grid

The challenge has become more pronounced as renewable generation capacity has expanded faster than the infrastructure required to manage surplus electricity. Data from the distribution system operator show that around 306 gigawatt hours of renewable energy were curtailed in 2025, compared with approximately 167 gigawatt hours a year earlier.

Papanastasiou acknowledged criticism that storage deployment has not kept pace with the growth of renewable energy projects, although he noted that regulatory and financing challenges slowed implementation. He added that the development of storage and generation capacity needs to progress in parallel, a challenge faced by many energy markets.

Private Capital Is Also Entering The Market

The state-backed battery installation forms part of a broader expansion of energy storage capacity across Cyprus. Alongside the project managed by the transmission system operator, the Electricity Authority of Cyprus (EAC) and private developers are advancing their own investments.

Current figures show 36 applications for battery storage projects with a combined requested capacity of approximately 925MW. The EAC has submitted applications for storage facilities in Dhekelia and Moni with a combined capacity of 180MW, while private-sector projects exceeding 150MW have progressed through various stages of the approval process.

Grid Stability Comes First

According to Papanastasiou, the state-owned battery system will primarily serve grid stability and energy security objectives rather than operate as a commercial trading asset. The facilities will store electricity during periods of surplus generation and release it when demand rises or when supply pressures emerge.

Privately operated storage projects could also contribute to the market by storing lower-cost renewable electricity and dispatching it later when demand and prices are higher.

As renewable energy continues to account for a larger share of Cyprus’ electricity mix, storage infrastructure is expected to play an increasingly important role in balancing supply and demand, reducing curtailments, and improving the overall efficiency of the power system.

Breaking news