Since 2023, the Cyprus energy system operator has significantly increased the curtailment of electricity generated by photovoltaic systems, limiting how much energy can be accepted by the grid
About curtailmentEnergy curtailment is the
deliberate reduction of electricity generation from power plants, typically wind and solar, to maintain the stability and reliability of the electrical grid when supply exceeds demand or transmission capacity is limited
- Curtailment occurs when electricity production exceeds grid demand
- Average curtailment in 2024: 29%
- Peak daily curtailment: up to 80%
- Battery energy storage systems (BESS) like Elpida, can store excess solar generation during high-production periods (typically around midday), helping improve grid stability
The Cyprus energy market is currently in a transitional phase and is expected to gradually move toward a competitive market from 2025 onwards. Energy storage will be essential for PV systems in both the transitional and future competitive market environments.
A Battery Energy Storage System (BESS) is an electrical device which stores surplus renewable energy and releases it when electricity demand is highest. This helps reduce energy waste, improves grid stability, and allows homes and businesses to use clean energy when it is most needed
Our BESS Features:- Proven lithium-ion (LFP) battery chemistry
- Smart energy management systems
- Efficient temperature management control
- Advanced fire suppression technology
- Remote monitoring and control
Energy storage is becoming essential for photovoltaic systems as Cyprus transitions from a closed energy market to a competitive one, expected by the end of 2025.
In the current transitional market, electricity prices are fixed, yet PV systems without storage can lose around €150/MWh due to curtailment. In the upcoming competitive market, electricity prices will be dynamic and change every 15 minutes, increasing potential losses for PV systems without storage to around €300/MWh. Battery energy storage systems (BESS) help prevent these losses by storing excess solar energy and enabling price arbitrage in a dynamic pricing environment.
PV growing leads to negative pricing - If Cyprus remains in the transitional market beyond 2025, increasing solar generation will lead to higher levels of curtailment.
In a competitive market, Cyprus is also expected to experience periods of negative electricity pricing (the deliberate reduction of electricity generation from power plants, typically wind and solar, to maintain the stability and reliability of the electrical grid when supply exceeds demand or transmission capacity is limited)
As the country moves to a competitive market, electricity prices will change throughout the day and, at times of very high solar production, may even drop below zero due to excess supply. Battery energy storage systems (BESS) help solve this by storing surplus solar energy when production is high and releasing it later, when demand and electricity prices are higher, such as in the evening.