TL;DR
Cyprus limited its solar energy production by more than 65% in the first five months of 2026 due to grid constraints and operational limits of conventional units. Residential PV systems are increasingly affected, raising concerns over project viability 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, as grid constraints and must-run conventional units continue to limit renewable output, according to PV Magazine.
Data from CyprusGrid indicates that the country’s renewable energy curtailment surged sharply in 2026, affecting primarily photovoltaic systems connected to the distribution network, along with 12.5 MW of biogas and 24 MW of wind capacity. The total curtailed volume in the first five months reached 162 GWh, representing a significant increase from previous years, where curtailment was around 12% in 2022 and rose to 47% in 2025.
The pattern of curtailment remains seasonal, with higher volumes during spring and autumn, but there has been a notable spike during the summer months, especially between June and August 2025, when curtailed volumes more than quadrupled compared to the same period in 2024. If this trend persists, 2026 could see record curtailments exceeding 60%, according to PV Magazine.
An anonymous researcher from CyprusGrid explained that a key driver of the record curtailments is the continued operation of must-run conventional units, which occupy substantial grid capacity that could otherwise be used for renewable generation. Additionally, depressed wholesale electricity prices, driven by renewable oversupply, have further discouraged renewable projects, with no compensation for curtailed generation available in Cyprus.
Impacts of Record Renewable Curtailment in Cyprus
This level of curtailment threatens the financial viability of renewable projects in Cyprus, especially as wholesale prices remain low and no compensation scheme exists for curtailed energy. Residential PV systems are increasingly affected, which could slow the growth of small-scale solar deployment and prosumer markets. The situation highlights ongoing challenges in integrating high levels of renewables into the grid without adequate infrastructure or market reforms, raising concerns about Cyprus’s energy transition and climate commitments.
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Historical Trends and Market Shifts in Cyprus Solar Sector
Cyprus’s renewable energy sector has experienced increasing curtailment over the past few years, with a sharp rise beginning in 2025. Historically, large-scale solar plants operated with minimal restrictions, but recent grid constraints and operational priorities have led to widespread curtailment, including residential PV systems. The market shift towards self-consumption and prosumer installations has been driven by the need to maintain economic viability amid rising curtailment and falling wholesale prices.
“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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Unresolved Issues and Future Risks for Cyprus Renewables
It is not yet clear whether Cyprus will implement new market reforms or grid upgrades to address the curtailment issue. The potential for compensation schemes for curtailed generation remains uncertain, as does the likelihood of expanding grid capacity or introducing storage solutions to mitigate curtailment levels in 2026 and beyond.
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Next Steps for Reducing Cyprus Renewable Curtailment
Authorities and grid operators are expected to explore options such as grid reinforcement, market reforms, and incentivizing storage solutions. Monitoring of curtailment levels in the coming months will determine if measures are effective in reducing the impact on renewable projects and residential PV systems, potentially stabilizing the market and supporting Cyprus’s renewable energy targets.
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Key Questions
Why is Cyprus curtailing so much of its solar energy?
Cyprus is experiencing high curtailment due to grid constraints, the operation of must-run conventional units, and low wholesale electricity prices, which reduce the economic viability of renewable projects.
How does curtailment affect residential solar systems?
Residential PV systems are increasingly affected by curtailment, with some being completely shut down during peak periods, impacting homeowners’ investments and energy independence.
Are there plans to compensate renewable generators for curtailment?
Currently, Cyprus does not compensate for curtailed energy, and it is unclear if future policies will change this to support renewable investments.
What measures might reduce curtailment in Cyprus?
Potential measures include grid upgrades, market reforms, and adding storage solutions to better integrate renewable energy and reduce curtailment levels.
Will Cyprus meet its renewable energy targets despite high curtailment?
While curtailment poses challenges, ongoing market and infrastructure developments may help Cyprus achieve its renewable energy goals, though progress could be slowed.
Source: PV Magazine
