The government of Cyprus has postponed the implementation of a pumped hydro storage system—intended to store surplus energy from renewable sources—until 2033. The original goal was to have the system operational between 2027 and 2028, but this is now deemed unfeasible.

As Brief reports, this update was revealed in a letter from the Ministry of Energy, signed by Director General Marios Panayides, and submitted to the House of Representatives. The letter clarifies that the delay is due to the extensive procedures required for the project's development, which are expected to be time-consuming. According to experts, pumped hydro is one of the most cost-effective methods for storing excess renewable energy.

The Ministry's letter was submitted following a request from the Parliamentary Committee on Energy. The committee sought details on the government's strategy for energy saving and storage from renewable energy sources, the pumped hydro storage system, and the potential involvement of private sector investments in the field.

According to the letter, the Ministry of Energy, in collaboration with the Ministry of Agriculture, requested and received technical assistance from the European Commission to support several initiatives, including pumped hydro storage. This assistance began in September 2023.

Specifically regarding pumped hydro storage, the technical assistance includes an evaluation of the financial and technical feasibility of developing such systems using either existing or newly constructed dams. The support also encompasses a review of the legal and regulatory framework in Cyprus, referencing best practices and current legislation from other EU member states.

Pumped hydro storage is considered a fully mature technology and is widely adopted globally for large-scale electricity storage. It currently accounts for over 94% of installed energy storage capacity worldwide.

This technology contributes to the stability of power systems, reducing both operational costs and emissions. Experts note that it ensures a reliable base load for the energy grid and limits the need to operate natural gas-powered units. Additionally, such investments have a significant economic impact. During the construction phase of a pumped hydro facility, the local added value exceeds 70%, underlining its importance for the national economy.