Cyprus is set to take a major step toward solving one of its most frustrating energy problems, the fact that a large share of solar power produced on sunny days simply goes to waste because the grid cannot absorb it.

On Tuesday, the Cyprus Transmission System Operator will sign contracts for the country’s first centralized electricity storage systems, marking the beginning of a new phase in how Cyprus manages renewable energy.

Energy Minister Michalis Damianos described the move as a “decisive step” that will help address the curtailment of photovoltaic production, essentially, the forced shutdown of solar panels when the system cannot handle excess electricity.

The project will deliver 120 megawatts of storage capacity, expected to be operational by the summer of 2027.

The batteries are due for delivery in January 2027, with installation to follow within two to three months.