Cyprus to showcase evolving energy strategy and regional role at Thessaloniki Forum
"Citing the urgent need to address severe grid constraints that wasted nearly half of distributed renewable generation in 2025—totaling 300 gigawatt-hours—Energy Minister Michael Damianos announced plans at the 10th Southeast Europe Energy Forum to deploy hundreds of megawatts of new energy storage capacity by late 2027, while leveraging the recent acquisition of the Great Sea Interconnector by French firm Meridiam and upcoming offshore gas production to bolster regional security and competitiveness."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
Cyprus' energy minister, Michael Damianos, is set to present the island's evolving energy strategy and its pivotal role in regional cooperation at the 10th Southeast Europe Energy Forum in Thessaloniki on Friday, September 4. His participation in a ministerial panel will address "Security, affordability and competitiveness in a changing energy landscape," alongside energy ministers from Greece, Bulgaria, North Macedonia, and a Romanian parliamentary energy committee president.
Minister Damianos' intervention is expected to cover Europe’s broader energy challenges, such as the diversification of energy sources and supply routes, enhancing energy security, managing energy costs, and improving the competitiveness of the European economy. He will emphasize Cyprus' strategic geographical position and its significant energy potential, highlighting their importance for strengthening regional collaboration, particularly through the development of electricity interconnections and vital energy infrastructure in the southeastern Mediterranean. The minister will also advocate for increased use of renewable energy sources, advanced energy storage solutions, and the strategic deployment of domestic energy resources to foster a safer, more resilient, and competitive energy system. Following the forum, Damianos is scheduled to visit the Energy Ministry’s pavilion at the 90th Thessaloniki International Fair before returning to Cyprus on Saturday morning.
These discussions occur amidst significant developments within Cyprus’ energy sector. The country faces increasing pressure to expand its energy storage capacity. This urgency stems from a notable curtailment of renewable electricity, primarily solar generation, due to grid constraints and insufficient battery storage. In 2025, approximately 300 gigawatt-hours of solar energy were wasted, representing nearly half of the distributed renewable generation. This trend continued into the first five months of 2026, with 162 gigawatt-hours curtailed. Minister Damianos clarified that these curtailments, executed by the Transmission System Operator and Distribution System Operator, are necessary for maintaining grid stability and are not discriminatory.
Energy storage is a core component of the government's solution. In July, Damianos announced plans for several hundred megawatts of new energy storage capacity by the end of 2027. This initiative aims to better integrate renewable electricity, especially solar power, into the national grid and enhance system resilience. Concurrently, the government is considering invoking Article 34 of the Electricity Market Regulation Law, as requested by the Cyprus Energy Regulatory Authority, to allow for the rapid installation of conventional electricity generation units if required. Both the Energy Ministry and Cera are jointly assessing this, with assurances from the Cyprus Transmission System Operator that summer electricity adequacy problems are not anticipated.
Cyprus is also embarking on a "decisive two-year period" in its energy strategy, transitioning from natural gas discoveries to active production. Speaking in Nicosia on July 29 at the World Congress of Overseas Cypriots, Minister Damianos underscored that the Eastern Mediterranean is at a "pivotal point," presenting both challenges and opportunities. He highlighted that in today's uncertain geopolitical climate, energy is crucial for economic development, regional cooperation, and strategic security. Cyprus' "consistent and multidimensional" energy policy is designed to lower energy costs, bolster supply security, and optimize the use of indigenous resources.
The 3+1 energy partnership involving Cyprus, Greece, Israel, and the United States continues to gain prominence as a key platform for political and technical collaboration. This alliance is expanding beyond traditional hydrocarbons to encompass renewable energy, electricity interconnections, and innovative energy technologies. A cooperation roadmap is expected to be finalized later in 2026, following a ministerial meeting in Houston. The launch of the Eastern Mediterranean Energy Centre at Rice University’s Baker Institute was also welcomed by Damianos, positioning it as a vital hub for collaboration between governments, academia, and the energy industry.
US involvement remains a significant aspect of Cyprus’ energy strategy. Minister Damianos expressed his satisfaction in July regarding US President Donald Trump’s personal interest in regional energy production, deeming it "vital" for the area’s energy security. He affirmed Cyprus' commitment to being a reliable partner for the United States.
Further enhancing regional connectivity, French investment group Meridiam became the majority shareholder in the Great Sea Interconnector (GSI) in August. This planned electricity link between Cyprus, Greece, and the broader region received "tremendous new momentum" from Meridiam's participation, reflecting the strong political will of Nicosia and Athens to advance this critical interconnection. This move actualizes a joint decision made by President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis at their third intergovernmental summit in Athens on November 12, 2025, to secure a robust strategic investor for the project.
These interconnected developments collectively underscore the multifaceted nature of Cyprus’ energy strategy, encompassing efforts to reduce electricity costs, increase renewable generation and storage capacity, foster electricity interconnections, responsibly exploit domestic gas resources, and strengthen energy partnerships with regional and international allies.