Strategic battery storage projects to end Cyprus's renewable energy curtailment
"The Electricity Authority of Cyprus (EAC) is aggressively pushing forward with three major battery energy storage systems (BESS) at Dhekelia, Moni, and Vasilikos power stations. Designed to store surplus solar power generated at midday for use during evening peak hours, these facilities aim to stabilize the grid and drastically reduce the forced curtailment of renewable energy."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
The Electricity Authority of Cyprus (EAC) is actively developing battery energy storage projects at key grid locations across the island. These initiatives at Dhekelia, Moni, and Vasilikos power stations are designed to reduce the curtailment of renewable energy, benefiting consumers, and significantly enhancing grid reliability. Concurrently, practical measures are being implemented to optimize the utilization of green power generation, especially in conjunction with photovoltaic systems and self-consumption.
At the Dhekelia Power Station, envisioned as the island's secondary electricity generation hub, EAC is installing an 80MW/160MWh storage system. The contract for this project was awarded to CYTA for €33,733,640. Construction commenced on February 9, 2026, with commercial operation anticipated around mid-September 2027.
The Moni Power Station project is currently undergoing licensing for a storage system with a total capacity of 100MW and 200MWh. The Cyprus Energy Regulatory Authority (CERA) has already issued the construction permit, and an application for connection terms has been submitted to the Transmission System Operator of Cyprus (TSOC). The Limassol District Local Government Organisation (DLGO) is awaiting an evaluation of the Information Report and an environmental opinion from the Department of Environment to finalize its assessment of the town planning permit application. This Moni project, estimated to cost €50,000,000, is expected to take 12 months to complete, with construction slated to run from January to December of the same year.
Meanwhile, an application has been lodged for a large-scale storage system at Vasilikos Power Station, boasting a total capacity of 250MW and 640MWh. CERA has issued the construction permit for this site. EAC is awaiting the Department of Environment’s review of the Information Report to complete the town planning permit assessment, while also preparing a separate application for connection terms for TSOC. The authority is further investigating suitable locations for smaller hybrid storage systems.
According to the Information Report submitted to the Environmental Authority, the Vasilikos project represents one of Cyprus’s most substantial energy infrastructure developments in recent years, with a total budget of €118,500,000. It involves integrating a battery system, with a maximum power of 250MW and a total storage capacity of 640MWh, within the existing Vasilikos power station facilities. This strategic placement leverages the site's existing high-voltage grid connections. The battery system will be installed on the northeastern side of the station, on land previously utilized for concrete production during the station's initial construction phases.
Historically, the inability to store surplus green energy during peak sunshine hours has necessitated the disconnection of photovoltaic systems to prevent blackouts on Cyprus’s isolated electricity grid. Upon completion of these storage projects, green energy generated around midday will be stored in batteries and subsequently released into the grid during the afternoon and evening peak hours, when electricity demand is highest. Subject to securing all necessary permits, the Vasilikos project is projected to begin in May 2027 and be completed 18 months later, in October 2028. Vasilikos Power Station serves as Cyprus’s primary electricity generation unit, meeting most of the island's energy requirements, and operates under the strict SEVESO Regulations for major hazard sites.
The battery storage system operates by electrochemically storing surplus electricity during periods of low demand and discharging it to the grid when demand is high. Connected directly to the national grid, this system is expected to significantly improve energy efficiency, optimize the management of available resources, and ensure the smooth and stable operation of the electricity system.
These projects are specifically designed to smooth out the inherent fluctuations between electricity production and demand, which have become more pronounced with the increasing penetration of renewable energy sources. This is anticipated to considerably strengthen the reliability and resilience of the electricity system, thereby accelerating the transition to a more sustainable energy model.
EAC states that these storage systems will effectively reduce the curtailment of renewable energy production by storing excess power during off-peak periods and releasing it during peak times. They will also contribute to grid stabilization through rapid responses to changes in frequency and voltage. Furthermore, the systems are expected to support ramp rate management, facilitating seamless transitions between different production levels during sudden swings in renewable output, and to provide crucial ancillary services such as frequency reserves (FCR, FRR), fast frequency response (FFR), and system inertia support. These projects will ultimately enhance the electricity system's reliability and its resilience to disturbances, actively supporting Cyprus’s green transition and national energy and environmental targets by reducing the need for conventional generating units to operate during peak demand periods.
Regarding accident response measures, the Information Report acknowledges that a failure or accident at the storage facilities could have localized effects. Based on the revised Safety Report for Dhekelia Power Station, a battery thermal runaway event could lead to fire and gas release. A fire would release carbon monoxide and a flammable cloud. However, the engineering design of the battery housings, coupled with advanced early detection and isolation systems, is specifically intended to minimize the risk of fire spread. Consequently, any fire is expected to be contained within a single housing, resulting in only a small flammable cloud and a limited release of toxic gases.
The preliminary design specifies the use of lithium iron phosphate batteries, selected for their extended cycle life of 7,500 to 10,000 charge-discharge cycles, as well as their high thermal stability, inherent safety, and reliability. The batteries will be housed in up to 140 prefabricated units with sealed doors under normal operating conditions. Since battery capacity and performance naturally degrade over time due to charging, discharging, and temperature effects, additional housings may be integrated later to maintain the unit’s 640MWh capacity. The entire battery energy storage system (BESS) operation will be continuously monitored and controlled through the SCADA automation and telemetry system.