Filenews 5 June 2022 - by Chrysanthos Manolis
The transition from conventional production (with fossil fuels) to green energy is a top challenge for Cyprus and from this great effort it is not conceivable to be absent the largest energy organization in the country, EAC, which has the necessary experience and know-how.
This is the answer given to "Phileleftheros" by the spokeswoman of EAC Christina Papadopoulou, when she was asked to comment on the draft decision of CERA not to grant her at this stage other RES installation licenses.
According to Mrs Papadopoulou, another important objective is to reduce the cost of generating electricity. And as she explains, "according to the pricing methodology, as it is approved by CERA, any reduction in energy costs is passed on for the benefit of the consumer. The more RES projects are included in the EAC's production mix, the greater the reduction in the price of electricity", as, she recalls, EAC aims to achieve the minimum regulated profit by CERA.
She also explains that given the skyrocketing production costs to unprecedented levels, "the inclusion of RES in the production capacity of EAC is a necessary condition to reduce on the one hand the dependence of our country on conventional fuels and on the other hand to enable the stabilization and further reduction of electricity prices to lower levels".
We invited Mrs. Papadopoulou to respond to CERA's position that EAC should first implement the licenses for 60 megawatts granted to it and then discuss the granting of other licenses and she replied that these licenses will be implemented when the broader laborious and time-consuming licensing process by other services is completed. However, she goes on to point out that "in the total of conventional production, the energy that will be produced by the already licensed RES units of EAC will be of very low power. Therefore, and in the light of the current situation, the benefits to the consumer will not be substantial. EAC," she added, "in response to its role and mission, has the will and ability to substantially increase its participation in renewable energy sources." She added: "The organization expects that no obstacles will be put in its way in an effort with significant social benefit."
The weak player
At another point in her replies to "F", the spokeswoman of EAC stated that "the energy produced by photovoltaic systems in Cyprus is largely produced by private producers, while the percentage of EAC is very small. Therefore, in the current environment of the competitive RES market, the weak player is the EAC and under no circumstances can there be any question of obstructing any private initiative".
We then asked Mrs. Papadopoulou about the liquidity problem faced by the organization due to the huge increases in production costs, which "F" wrote about on Thursday. She confirmed the existence of a liquidity problem, which, according to her, "was estimated to reach marginal levels in a short period of time, in the event that the existing tariffs and the existing fuel clause coefficients remained in force, so it was considered necessary to inform the competent bodies. Following the recent decisions of CERA", concluded the representative of EAC, "which will soon readjust the new tariffs and the new fuel clause rates, it is expected that with the current data there will be no further deterioration of the liquidity of the organization". This, of course, is on the condition that there will be no further increases in fuel prices and greenhouse gas rights.
