Filenews 31 August 2021
"The main way to improve the competitiveness of the Cypriot economy, given the significant increases recorded in the price of electricity in our country, as in the rest of Europe, is the passage of the bill that is before the House of Representatives for the full opening of the electricity market and the creation of conditions of competition", said the Minister of Energy, Commerce and Industry (YEEB) Mrs. Natasa Pilidou.
Speaking today to journalists in the context of an all-day session of the House Standing Committee on Energy, Commerce, Industry and Tourism for an article-by-article discussion of the bills for "Regulation of the Electricity Market", "Regulation of the Natural Gas Market" and "Establishment and Operation of CERA", Ms. Pilidou stressed that specifically the bill on electricity, like the other two, is based on extensive consultations with all stakeholders. Therefore, she said, "it includes solutions to the issues concerning the effective and unhindered functioning of the market, which bring together the various points of view, while ensuring harmonisation with the European acquis".
According to the Minister of Energy, the transitional arrangement applied to the electricity market from 1 January 2021, under which two additional suppliers, in addition to EAC, are already fully exploiting their potential, demonstrates the great interest that exists from consumers for the conclusion of bilateral contracts. "Interest", she added, "exists on the part of companies that wish to operate in the field of electricity production and supply, with the full opening of the market offering opportunities to all of us as consumers, as well as for further penetration of Renewable Energy Sources in the energy mix of Cyprus".
As Noted by Ms. Pilidou, this effort is part of a multifarious strategy on which the Ministry of Energy, Commerce and Industry focuses on the transition to green energy and the containment of the price of electricity for the benefit of households, businesses and the competitiveness of the Cypriot economy. In the context, he stressed, of the broader energy strategy we are implementing, among others, it includes:
- The advent of natural gas, where again the contribution of the Parliament will be needed for the passage of the bill for the conversion of DEFA into a legal entity of public law. The construction of the infrastructure for the advent of liquefied natural gas is progressing and the goal is to be completed by the end of 2022.
- The promotion of energy storage technology that will help RES to compete on equal terms with conventional technologies. The framework of the incentive plan has already been prepared by the Ministry of Research and The Ministry of National Defence and CERA and this week it will be discussed with the Superintendent of State Aid. The available budget from the Just Transition Fund for the promotion of storage technology amounts to €40 million. and may increase to €89 million.
- The environmental impact study carried out by the Ministry of National Defence, which is currently being consulted, will clearly identify the siting areas of res projects and will contribute to their greater penetration.
- The funds secured by the Ministry of Health and National Defence from the Recovery and Resilience Facility and the Structural Funds, which exceed €500 million. over the next seven years. Of these, €334 is for the green energy transformation. In 2021 alone, from February until today, the Ministry of National Health and Rural Development announced sponsorship plans in excess of €127 million, of which €45 million. to encourage green energy. In 2022, €80 million of projects will be announced. for the energy upgrading of public enterprises, residences and buildings.
- The promotion of the EuroAsia Interconnector project of common interest, an alternative corridor for the transmission of electricity from eastern Mediterranean to Europe, as well as the EuroAfrica Interconnector for the electricity interconnection of Cyprus, Egypt and Greece. Two projects that will contribute to the lifting of the energy isolation of Cyprus and will contribute to the creation of competition in the market.
- The installation of 400,000 smart meters by the Distribution System Operator during the period 2022-2025.
- The creation of a framework for Renewable Energy Communities – promotion of microgrids.
- The promotion of net metering and net billing, so that by 2030 the installed systems will triple and exceed 300 MW.
- The promotion of a digital platform for the facilitation of investors, fast licensing and implementation of RES projects. The relevant harmonizing bill is in the Legal Service and is expected to be submitted to Parliament soon.
