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Cyprus reduced its solar energy output by more than 65% from January to May 2026, mainly due to grid limitations and ongoing operation of conventional power plants. Residential PV systems are increasingly affected, raising concerns over project sustainability amid low wholesale prices.
Cyprus curtailed more than 65% of its potential solar energy generation from January to May 2026, amounting to approximately 162 GWh, due to grid constraints and the continued operation of must-run conventional units, according to PV Magazine.
Data from CyprusGrid indicates that the country’s solar curtailment has surged sharply, rising from around 12% in 2022 to 47% in 2025, with projections suggesting it could exceed 60% by the end of 2026 if current trends persist. The affected capacity includes mainly photovoltaic systems, alongside 12.5 MW of biogas and 24 MW of wind power connected to the distribution network.
The increase in curtailment, especially during spring and autumn, correlates with lower demand periods, but summer months saw a quadrupling of curtailed volumes compared to 2024. A significant factor driving these levels is the operation of must-run conventional units, which limit the grid’s capacity for renewable energy. Additionally, depressed wholesale prices, driven by renewable oversupply, have compounded financial pressures on renewable investors.
Cyprus does not offer compensation for curtailed generation, leading to revenue losses and raising questions about project viability. Some PV owners are attempting to renegotiate power purchase agreements, but market liquidity constraints hinder these efforts. The potential solution of adding battery storage is being delayed by administrative hurdles, further complicating the situation.
Starting in 2025, residential PV systems have faced increasing curtailment, with residential and small-scale PV generation reaching 30,180 MWh in 2025, up from 1,565 MWh in 2024. Between January and May 2026, curtailment of residential PV hit a record 46,687 MWh. This shift reflects the growing dominance of residential and prosumer installations in Cyprus’ solar market, as large-scale projects slow down due to grid limitations.
Impacts on Cyprus’s Renewable Energy Goals
The rising curtailment rates threaten Cyprus’s renewable energy targets by reducing the effective contribution of solar power. This situation underscores the challenges of integrating high levels of renewables into a constrained grid and could impact the country’s commitments to decarbonization and energy independence. The financial strain on small-scale and residential solar projects also raises concerns about future investment and market stability, potentially delaying the country’s transition to cleaner energy sources.
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Cyprus’s Renewable Expansion and Grid Challenges
Cyprus has seen a rapid growth in solar capacity, especially in the residential sector, driven by self-consumption and prosumer models. However, the country’s grid infrastructure faces limitations, partly due to the continued operation of must-run conventional units, which occupy significant capacity and restrict renewable integration. The surge in curtailment began in 2025, with large-scale solar plants initially most affected, but later expanding to residential PV systems, reflecting evolving grid constraints and market dynamics.
“A key driver behind Cyprus’ record curtailments is the continued operation of must-run conventional units, which occupy a significant share of grid capacity that could otherwise be used by renewables.”
— an anonymous researcher
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Unclear Future of Grid and Policy Responses
It is not yet clear whether Cyprus will implement structural grid upgrades or policy measures to reduce curtailment levels. The timeline and scope of potential interventions, such as expanding storage capacity or modifying grid operation rules, remain uncertain. Additionally, the long-term impact on renewable investment and market dynamics is still developing, with stakeholders awaiting further government action.
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Expected Developments and Policy Considerations
Cyprus is likely to face increasing pressure to address grid limitations through infrastructure upgrades or policy reforms. Future steps may include accelerating grid modernization projects, incentivizing storage solutions, or adjusting market rules to better accommodate renewable generation. Monitoring of curtailment trends and stakeholder engagement will be critical in shaping effective responses for the remainder of 2026 and beyond.
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Key Questions
What caused the surge in solar curtailment in Cyprus?
The main causes are the operation of must-run conventional units occupying significant grid capacity and low wholesale electricity prices driven by renewable oversupply, which reduce the economic viability of solar projects.
How does curtailment affect residential PV owners in Cyprus?
Residential PV owners face increased curtailment, especially during low-demand periods, which limits their ability to generate and use self-produced solar power, impacting project economics and energy independence.
Is Cyprus planning to fix its grid constraints?
There are discussions about infrastructure upgrades and policy reforms, but specific actions and timelines remain unclear at this stage.
Will curtailment rates decrease in the future?
This depends on whether Cyprus implements grid enhancements, storage solutions, or policy changes to better integrate renewable energy; current trends suggest significant challenges remain.
What are the implications for Cyprus’s renewable energy goals?
High curtailment levels threaten to slow progress toward renewable targets and could delay the country’s decarbonization commitments if not addressed effectively.
Source: PV Magazine
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