In a wide-ranging interview on the “Alpha News” program, the Minister of Energy, Trade, and Industry, Michalis Damianos, discussed the next milestones in Cyprus’s energy roadmap, clarifying the timelines for large-scale energy storage batteries and signaling a gradual decline in electricity prices.

The Minister candidly acknowledged that timelines in the energy sector have historically been problematic, attributing the delays primarily to the convoluted procedures of the broader public sector.

Commenting on the recent signing of the contract between the Cyprus Transmission System Operator (CTSO) and CYTA for the 120 MW energy storage systems, Mr. Damianos clarified that the batteries are expected to be delivered in January 2027 and will be fully operational before the summer of that same year.

The project, worth 49 million euros, is funded by European funds and aims to limit mandatory curtailments of green energy. This initiative will also have a direct impact on consumers’ wallets, with the Minister noting that “As renewable energy sources—which are cheaper—increase in our energy system, this means that, little by little, the price of electricity within the framework of this storage system should go down.”

At the same time, the government’s overall goal is for the energy mix to have 450 MW of storage capacity by the end of 2027, through joint investments by the System Operator, the Cyprus Electricity Authority (AHK), and private entities.

Electricity Interconnection

Regarding the Great Sea Interconnector (GSI), the Minister of Energy cautioned against excessive expectations of immediate, cheaper energy, emphasizing that the project is primarily about energy security. He explained that Cypriot consumers will bear 63% of the construction cost of the Crete-Cyprus cable, which may initially lead to higher bills.

“The electricity interconnection between Cyprus and Greece does not necessarily mean that electricity prices will decrease. It may not reduce them,” he noted.

He also announced that ADMIE is expected to submit a funding application to the European Investment Bank by the end of the month, so that the necessary due diligence study can be conducted to determine the project’s actual financial viability. On the other hand, he emphasized that the geopolitical risk is significantly reduced in the context of interconnection prospects with countries such as Israel and Egypt, due to their geographical distance from Turkey.

Finally, ahead of his appearance before the Parliament’s Energy Committee on July 7, Michalis Damianos laid out his plans regarding the pressing issue of energy surpluses from residential photovoltaic systems, announcing the issuance of a relevant decree. The Minister made it clear that the government’s intention is to rectify the injustice suffered by thousands of consumers who had signed 15-year contracts at the end of 2021, ensuring that their accumulated “credits” will not be lost.

“Our intention is to restore the surplus to those who had it on the day of the write-off. It would be unfair for them not to receive these surpluses,” he concluded.