Filenews 5 January 2021 - byChrysanthos Manolis
A milestone for the energy sector in Cyprus is considered by the Director of the Cyprus Transmission System Operator (TSO) Stavros Stavrinos the operation, from 1 January 2021, of the first private electricity supplier. It is Bioland Promithia, a subsidiary of Bioland Holdings Ltd, which is the first to take advantage of the Transitional Arrangement for the competitive electricity market and since New Year's Day has been supplying electricity to large private consumers under bilateral contracts. The electricity generated comes from photovoltaic parks of the same group.
In response to a question from the 'F' on the importance of the first operation of the transitional arrangement for the electricity market, Mr Stavrinos said that this is "a very important development and a real milestone, because, among other things, it is also an opportunity to training in competitive market conditions for all involved". The operation of Bioland Promithia also recommends the lifting of EAC's monopoly on electricity supply and the first essential step for the competitive market, the official operation of which is expected by the end of 2021 or early 2022.
According to the information we requested and had from the Director of the TSO, Bioland Promithia's existing customers have a total installed capacity of 10 megawatts, which is also the required threshold for a supplier's admission to the Transitional Arrangement.
The company has submitted to the TSO six bilateral contracts with six electricity producers, who have also joined the Transitional Arrangement. Contracts have been accepted by the specific platform created in the TSO and at the end of January (as at the end of each month) there will be liquidation for surpluses (greater electricity production than contracts) or for deficits (less production than foreseen in contracts). Deficits will be covered by EAC production (at the level of each avoidance cost) and surpluses will be purchased by EAC, also at the level of avoidance costs. In case of excessive surpluses (over 30%), a penalty fee will be imposed.
According to Mr. Stavrinos, the role of the TSO is that of the Market Officer of the Transitional Arrangement. We check, he told us, that the quantities of physical delivery notifications submitted by suppliers and producers match each other in order to become bilateral contracts in the Transitional Market. Also, at the end of the month the exact consumption of the supplier's customers is checked, in relation to the contracts it has concluded with the producers. The exact energy injection of each producer, in relation to the contracts it has concluded with suppliers, is also checked in order to make the liquidation. It is important to mention that while in the normal competitive market the liquidation will take place every half hour, the Transitional Arrangement will take place every month.
In response to a question as to whether other private suppliers are expected to join the Transitional Arrangement (p.p. EAC Procurement is not entitled to participate in the Transitional Arrangement), the TSO replied that a number of interested parties had been asked for information, but no other application for the inclusion of a producer or supplier had been submitted at this time.
Η Bioland Promithia
In the meantime, The Bioland Holdings Ltd Group of Companies in a statement states that it is pleased to inform the general public that its subsidiary, Bioland Promithia Ltd, has signed on 7 December 2020 the Contractual Framework of the Regulations of the Transitional Regulation of the Electricity Market, with the Cyprus Transmission System Operator, with an official start of supply to consumers on 1 January , 2021. "January 1, 2021 marks a historic day for Cyprus. The opening up of the Competitive Electricity Market is already a fact" noted in the Communication.
It is added that Bioland Promithia is the first electricity supply company in Cyprus, which meets all the requirements specified in the Electricity Market Transitional Regulation Rules and the first electricity supply supplier in Cyprus after EAC (p.p. there are 14 other companies licensed by RAEK for electricity supply, but have not yet been active. , are in the process of constructing photovoltaic parks, so that they are also producers of electricity).
According to the announcement of Bioland Holdings Ltd, Bioland Promithia's clientele includes well-known names of the commercial and industrial world of Cyprus.
However, the company did not want, at least at this stage, to let us know the names of its customers. Bioland Promithia's energy mix consists exclusively of green energy from photovoltaic parks, contributing, he says, to the protection of the environment, with zero greenhouse gas emissions.
