Cyta and Huawei forge a landmark €50 million alliance to deploy smart battery storage systems, stabilizing Cyprus's power grid and ending solar energy waste.

The two organizations have already developed cooperation in critical sectors of digital infrastructure.

• A landmark signature for the transformation of the Cypriot network.

Cyprus enters a new energy era following the strategic cooperation between Cyta and Huawei, a partnership that aspires to provide solutions to one of the greatest problems of the electricity system: grid stability and the effective utilization of Renewable Energy Sources (RES).

The official signing of the agreement tomorrow, Tuesday, June 23, 2026, marks the transition from planning to the implementation of a project considered of pivotal importance for the country's energy future. With a total budget of €50 million, the centralized battery energy storage system (BESS) project aspires to transform the Cypriot grid into one of the most modern in the Mediterranean.

Smart Tech

At the heart of the cooperation lies Huawei's "Smart BESS" technology. These are advanced storage systems that act as "digital regulators" of energy flow, absorbing excess production from photovoltaics and feeding it back into the grid when demand increases.

Through the use of sophisticated management algorithms, this technology smooths out the fluctuations caused by the nature of solar production, turning renewable energy into a reliable and immediately available source of electricity.

Concurrently, Cyta leverages its expertise in managing critical infrastructure, providing the digital and telecommunications background required for the continuous oversight and real-time management of the facilities.

Strategic Investment

The project includes three main storage units with a total capacity of 120 MW. The first two units, each with a power capacity of 40 MW and a storage capacity of 160 MWh, will serve long-term energy storage. The third unit, with a capacity of 40 MW and 80 MWh, will utilize grid-forming technology, allowing the grid to respond in fractions of a second and maintain stable voltage and frequency even during periods of intense fluctuations.

This capability is considered decisive for the security of the electricity system and for the penetration of RES into the Cypriot energy market.

The End of Solar Power Curtailments

For years, Cyprus was faced with a paradox: large quantities of solar energy were produced daily, but a significant portion was lost due to the grid's inability to absorb it.

With the implementation of this project, excess production is estimated to be stored instead of rejected. This energy will return to the grid during peak hours, reducing the need to use expensive and polluting conventional fuels.

A New Era for the Cypriot Consumer and Broad Tech Synergy

The agreement between Cyta and Huawei constitutes a strategic investment with an impact on the economy, the environment, and the energy security of the country.

With a horizon of full operations by the summer of 2027, the project is expected to contribute to reducing energy costs, enhancing grid reliability, and achieving green transition targets. This is an investment that aspires to become a reference point for the entire Eastern Mediterranean, proving that innovation, technology, and strategic planning can turn today's challenges into opportunities for tomorrow.

The cooperation between Cyta and Huawei is not limited to the energy sector. In recent years, the two organizations have developed close cooperation in critical areas of digital infrastructure, contributing to the technological modernization of Cyprus. Huawei participates in the development of advanced telecommunication networks, fiber optic solutions, and next-generation technologies that enhance connectivity for citizens and businesses.

At the same time, both sides are examining applications for artificial intelligence, "smart" cities, and data management systems that can improve the operations of public and private organizations. This new energy cooperation adds to this long-standing relationship of trust, confirming the shared goal for a more digital, sustainable, and technologically advanced Cyprus.

Source: Brief