In May 2025, Cyprus successfully commissioned its first significant battery energy storage system (BESS), marking a major step toward enhancing the country’s energy infrastructure and aligning with its national goals for renewable energy integration and grid optimization.
Project overview and key partners
Spearheaded by a partnership between the Electricity Authority of Cyprus (EAC) and Swedish energy technology company ABB, the BESS project is located near the town of Vasilikos and has an initial capacity of 50 megawatts (MW), with plans for future expansion.
The system stores excess energy from renewable sources like solar and wind, releasing it during peak demand periods or when generation is low. This process helps stabilize the grid and reduce reliance on fossil fuels.
Technical specifications
The battery energy storage system utilizes advanced lithium-ion technology, known for its high energy density and long cycle life, and is integrated with ABB’s digital energy management platform for real-time monitoring and control.
This software optimizes the batteries’ charging and discharging cycles for maximum efficiency and longevity. The system is also equipped with state-of-the-art safety features, including thermal management and fire suppression systems to prevent overheating and mitigate risks.
Funding and project support
The project received significant financial backing, with €10 million from the European Union’s Horizon 2020 program and another €5 million from the Cypriot government, underscoring a strong commitment to advancing the country’s renewable energy infrastructure.
A collaboration between local contractors and international experts ensured the project was completed on schedule. The successful commissioning of the BESS is now expected to serve as a model for future energy storage initiatives across the region.
National benefits of the BESS
The battery energy storage system is expected to bring numerous benefits to Cyprus, starting with enhanced stability and reliability for the national grid. By providing a buffer for renewable energy fluctuations, the system will reduce the risk of power outages and ensure a more consistent energy supply.
The BESS will also help Cyprus meet its renewable energy targets. By storing excess solar and wind energy, the system enables the country to increase its share of renewables in the overall energy mix.
This supports the European Union’s goal of achieving a 32% renewable energy share by 2030, as Cyprus continues to address grid saturation challenges.
The project is also expected to generate economic benefits by creating jobs in the facility’s construction, operation, and maintenance. It will also help reduce energy costs for consumers by minimizing the need for expensive fossil fuel imports.
Future expansion plans
Building on the success of the Vasilikos project, Cyprus has ambitious plans to expand its battery energy storage capacity. The EAC has announced it will explore additional sites for BESS installations, with the goal of reaching a total capacity of 200 MW by 2030.
The government is also developing regulatory frameworks to encourage private sector investment in energy storage, including incentives for businesses and households to install smaller-scale battery systems and promote decentralized energy solutions.
The successful commissioning of the first significant energy storage system in Cyprus represents a major milestone in the country’s transition to a sustainable energy future. With continued investment and innovation, Cyprus is well on its way to achieving its renewable energy goals and reducing its carbon footprint.
