A pilot energy storage project could slash costs, store wasted solar power and reduce Cyprus’ heavy reliance on expensive imported fuel, according to BaroMar CEO.
Could electricity bills be cut by as much as 50%? According to BaroMar CEO Yonadav Buber, the answer is yes.
Speaking at the Green Agenda conference, Buber outlined how his company's energy storage technology could help lower electricity costs while making better use of renewable energy. The system, known as UW-CAES (Underwater Compressed Air Energy Storage), stores energy using compressed air in underwater reservoirs and is projected to deliver annual savings of approximately €18.7 million.
BaroMar has selected the PROTEAS Research Centre in Cyprus as the site for testing and piloting the technology. The project is already under development, with design, licensing, and infrastructure preparations well underway. According to the current timeline, the pilot unit is expected to be completed by November.
Buber said the project could strengthen Cyprus' energy independence by making better use of locally produced renewable energy while reducing reliance on costly imported fuels and electricity.
He explained that BaroMar's technology offers a large-scale, long-duration energy storage solution that could enhance energy security, lower electricity prices, and increase the use of renewable energy sources across the island.
According to the company's calculations, a commercial-scale facility with a capacity of 40 MW / 400 MWh could generate annual savings of around €18.7 million. Of that amount, approximately €11.4 million would come from reduced fuel consumption, while another €7.3 million would result from lower carbon emissions and reduced spending on emissions allowances under the EU carbon trading system.
Buber said such a facility could store excess solar energy that is currently wasted, help stabilize the electricity grid, and reduce dependence on imported fuels.
At the same time, he noted that the project could contribute to Cyprus' climate goals while supporting the local economy, with around 40% of the investment potentially remaining within Cyprus. The facility could also provide backup and grid-balancing services without relying on fossil fuels.
Buber highlighted what he described as a paradox in Cyprus' energy sector. Despite significant growth in solar power, more than 80% of the island's electricity is still generated from imported fuel oil, keeping production costs high and leaving the country exposed to fluctuations in global fuel prices.
He also pointed out that Cyprus spends more than €100 million annually on carbon emissions allowances under the EU Emissions Trading System because of its continued reliance on fossil fuels.
Meanwhile, although nearly 100,000 solar photovoltaic systems have been installed across the country, a significant portion of the renewable electricity they generate is lost due to limitations in the power grid.
Buber also referred to the ongoing curtailment of solar energy production, saying Cyprus' isolated electricity system often struggles to absorb available renewable power during peak generation hours. Conventional power plants must remain on standby as backup, continuing to burn fuel and adding to overall costs.
In closing, Buber said Cyprus is an ideal market for the deployment of large-scale energy storage systems due to its combination of high electricity prices, widespread solar energy adoption, isolated grid structure, and extensive access to the sea.
