TL;DR
Cyprus has curtailed over 65% of its potential solar power generation in the first five months of 2026, driven by grid constraints and operational issues. Residential PV systems are increasingly impacted, raising concerns over project sustainability amid low wholesale prices.
Cyprus curtailed more than 65% of its potential solar generation in the first five months of 2026, with about 162 GWh of renewable energy being limited by grid constraints and operational factors, according to PV Magazine.
Data from CyprusGrid indicates that the country’s renewable energy curtailment reached 162 GWh during January-May 2026, a significant increase from previous years. The affected capacity includes primarily photovoltaic systems, along with 12.5 MW of biogas and 24 MW of wind power connected to the distribution network. Curtailment rates have risen sharply from around 12% in 2022 to 47% in 2025, with seasonal surges during spring and autumn, and a notable spike during summer months of 2025. If this trend persists, Cyprus could see curtailments exceeding 60% by year’s end.
An anonymous researcher from CyprusGrid attributes the surge primarily to the continued operation of must-run conventional units, which limit renewable integration. Additionally, depressed wholesale electricity prices—driven by renewable oversupply—are exacerbating financial pressures for renewable operators, as Cyprus does not compensate for curtailed energy. The situation has led PV owners to seek renegotiations of power purchase agreements (PPAs), but market liquidity remains low, hindering such efforts. Efforts to add battery storage are hampered by administrative delays, further complicating solutions.
Since 2025, residential PV systems have become increasingly affected, with curtailment reaching 30,180 MWh last year and a record 46,687 MWh in the first five months of 2026. This shift reflects a market increasingly dominated by self-consumption and prosumer installations, as large-scale project development slows. Despite these challenges, residential PV remains financially viable in Cyprus through self-consumption, although ripple control measures temporarily cut off production during curtailment events.
Impacts of Rising Solar Curtailment on Cyprus Energy Market
The sharp increase in solar curtailment in Cyprus highlights ongoing grid and operational challenges that threaten the viability of renewable investments. The inability to fully utilize solar capacity could slow the country’s renewable energy transition and impact energy security. Moreover, the financial strain on project owners and the lack of compensation mechanisms raise concerns about the sustainability of future renewable deployment. This situation underscores the need for structural grid upgrades and policy adjustments to accommodate higher renewable shares.
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Recent Trends and Drivers Behind Cyprus’s Solar Curtailment
Cyprus has seen a steady rise in renewable energy curtailment over the past few years, with rates increasing from approximately 12% in 2022 to nearly 50% in 2025. The primary factors include the operation of must-run conventional units that limit renewable integration, seasonal demand fluctuations, and depressed wholesale electricity prices. Historically, large-scale solar plants monitored through the transmission system could be curtailed using control methods like ripple control, but since 2025, residential and small-scale PV systems have also been heavily impacted. The surge coincides with a market shift towards self-consumption and prosumer installations, driven by the economic viability of residential PV despite curtailment challenges.
“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 from CyprusGrid
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Unclear Future Trends and Policy Responses
It is not yet clear whether Cyprus will implement structural grid upgrades or policy measures to mitigate high curtailment levels in 2026 and beyond. The extent to which market reforms, compensation mechanisms, or storage solutions will be adopted remains uncertain, as does the potential impact on renewable project viability and energy prices.
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Next Steps for Cyprus’s Renewable Energy Development
Authorities and grid operators are expected to evaluate options for grid reinforcement and policy adjustments to reduce curtailment. Further analysis will determine if investments in storage or market reforms can stabilize renewable integration. Monitoring curtailment levels through the remainder of 2026 will be critical to assessing the effectiveness of these measures and potential policy changes.
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Key Questions
Why has Cyprus experienced such high solar curtailment in 2026?
The increase is primarily due to grid constraints caused by the operation of must-run conventional units and seasonal demand fluctuations, along with depressed wholesale prices that limit revenue for renewable operators.
Are residential PV systems also affected by curtailment?
Yes, residential PV systems have seen a significant rise in curtailment, with record volumes in early 2026, as the market shifts toward self-consumption and prosumer installations.
Is Cyprus planning to address the curtailment issue?
While specific policy measures are not yet confirmed, authorities are likely to consider grid upgrades and market reforms to reduce curtailment and support renewable deployment.
What are the economic impacts on renewable project owners?
Curtailment reduces revenue for project owners, and since Cyprus does not compensate for curtailed energy, this creates financial pressure and questions project viability.
Could adding storage help reduce curtailment?
Adding battery storage could shift excess generation to hours of higher demand, but currently, administrative delays hinder widespread deployment of storage solutions.
Source: PV Magazine
