Cyprus Added 122 MW of Solar Capacity in 2025
The solar energy sector in Cyprus demonstrated remarkable resilience and growth in 2025, adding approximately 122 MW of new capacity. This significant expansion brought the nation’s cumulative solar capacity to 957 MW by the end of the year, underscoring a strong commitment to renewable energy despite facing substantial grid and technical hurdles.
Growth in the Face of Grid Constraints: Expanding Cyprus solar capacity
The expansion is particularly noteworthy given the challenging operational environment. In 2025, Cyprus experienced record-high levels of energy curtailment. According to industry data, nearly 47% of the solar power generated could not be absorbed by the national grid due to stability issues. This highlights a critical bottleneck where the pace of renewable energy installation is outstripping the grid’s capacity to manage it effectively.
Despite these limitations, the solar sector thrived, primarily driven by a strategic shift towards self-consumption models. An estimated 80% of the new solar installations were self-consumption photovoltaic (PV) projects. These systems, designed for on-site energy use by homes and businesses, face fewer grid constraints and offer more attractive financial returns compared to large-scale, grid-dependent solar farms. This trend indicates a market adapting to infrastructure challenges by prioritizing decentralized generation.
Fanos Karantonis of the Cyprus Association of Renewable Energy Enterprises confirmed this trend, emphasizing the sector’s robust performance amid the ongoing grid limitations.
The Broader Renewable Landscape: Including Cyprus solar capacity
Solar energy was the dominant force in Cyprus’s renewable expansion for the year. Of the total 134 MW of new renewable capacity added, solar accounted for 122 MW, with wind power contributing the remaining 12 MW. By the close of 2025, the island’s total installed renewable energy capacity reached 1,139 MW.
This local growth story is part of a wider European movement. The European Investment Bank (EIB) Group has noted that its support has been instrumental in the deployment of renewables across the continent. Furthermore, the broader European renewable energy transition continues to gain momentum as nations work towards ambitious climate and energy goals.
While the 122 MW addition in Cyprus is a clear success, the significant curtailment rates serve as a critical reminder. To unlock the full potential of its abundant solar resources, Cyprus must prioritize investments in grid modernization, energy storage solutions like co-located batteries, and improved grid management systems. Addressing these infrastructure challenges will be essential for sustaining this impressive growth and ensuring a stable, green energy future.
