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Unlocking The Value Of Battery Storage: A Strategic Shift For Cyprus’s Renewable Future

Cyprus curtailed an estimated 306 gigawatt-hours of solar energy in 2025 due to grid constraints, according to industry estimates. Volume is equivalent to the annual electricity consumption of around 51,000 households. At the same time, the electricity sector incurred €250–350 million in EU carbon allowance costs. Battery storage systems offer a way to use surplus renewable energy and reduce these losses.

Understanding The Scale Of Energy Curtailment

Curtailment levels increased sharply in recent years. Rates were negligible four years ago, reached 29% in 2024, and approached 46% in 2025 as rooftop solar capacity expanded. Limited storage capacity and lack of interconnection prevent export of excess electricity, increasing pressure on the grid as new capacity is added. Annual curtailed volume exceeds the electricity consumption of the city of Paphos.

The Promise Of Battery Storage

Battery storage systems allow excess energy generated during low-demand periods to be stored and used during peak hours. Data from the Cyprus Transmission System Operator’s Day-Ahead Market between October 2025 and February 2026 show a consistent price spread between midday and evening periods. Average prices reached €101 per megawatt-hour during midday hours and €183 during evening peaks, supporting a positive revenue model for storage deployment.

A 5 MW solar park combined with a 20 MWh battery system can generate approximately €294,000 annually by capturing curtailed energy. Payback period for such systems is estimated at six to nine years, followed by continued revenue generation.

Regulatory Progress And Remaining Challenges

Cyprus introduced regulatory changes in January 2026, allowing solar park operators to integrate battery storage systems. The framework was developed by CERA and the DSO under a Category B structure. Current rules limit participation in the electricity market, as storage systems cannot operate independently and must charge only from co-located solar generation.

Scaling Impact And Market Integration

Public investment includes a 120 MW / 400 MWh battery system supported in part by the EU Just Transition Fund. The project supports grid stability but does not address system-wide storage needs. More than 1,000 MW of potential storage capacity is held by 33 private companies, indicating scope for broader deployment if market access expands.

“We are now entering a European BESS cycle. The first wave of solar and wind installations has reached grid limits. Battery storage enables further renewable expansion,” said Dr Arkadius Sybaris.

Economic And Security Imperatives

Cyprus spends €250–350 million annually on EU Emissions Trading allowances, reflecting continued reliance on fossil fuels. Curtailment of renewable energy contributes to higher system costs. Experience from Ireland and the United Kingdom shows battery storage can reduce fossil fuel dependence and improve grid stability.

Grid-forming battery systems have already been ordered by operators in Cyprus, but remain underutilized under current regulations. “We are not talking about future technology. Grid-forming battery systems are already deployed across Europe. Hardware is available, but regulatory approval is required for operation,” said Alexander Papacosta, Managing Director of Lighthief Cyprus & Greece.

The Path Forward

Expanding the value of renewable energy in Cyprus requires regulatory and market adjustments. In other EU markets, storage operators participate in day-ahead trading, provide ancillary services, and support grid stability. Policy changes could include allowing battery systems to operate as market participants, enabling participation in balancing services, and permitting grid-forming systems to provide inertia support. Implementation of these measures would increase system efficiency and reduce curtailment.

About Lighthief Energy Group

Dr Arkadius Sybaris is the founder of Lighthief International, a renewable energy group active in 11 European nations. Lighthief Cyprus manages a portfolio of battery storage projects totaling 249 MW/882 MWh across 51 licensed solar parks on the island. Alexander Papacosta is the Managing Director of Lighthief Cyprus & Greece.

Copyright Law Struggles To Keep Up With AI Training

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.

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