Filenews 3 February 2023 - by Chrysanthos Manoli
Through yesterday's letter from the Association of RES Companies (SEAPEK) to the Minister of Energy, the disagreement of some entrepreneurs with the Virtual Net Billing program promoted by the Government is made public perhaps for the first time in a clear way. The program is promoted to facilitate the production of electricity for self-consumption, by companies that do not have space in their professional premises for the installation of a sufficient number of frames and acquire the ability to utilize, elsewhere, another privately owned or rented plot and to be credited with the electricity that will be produced by the photovoltaics that will be installed there.
The promotion of Virtual Net Billing is included in the new plan under study by the Ministry of Energy for the further installation of photovoltaics for self-consumption, for which a public consultation was held. Many other businesses favor Virtual Net Billing, as only with it will they be able to use photovoltaics to reduce their electricity (and production) costs, as they cannot install photovoltaics either on the roofs of their premises or in empty spaces around these premises.
In its letter to the Minister of Energy, SEAPEK also points out the following: "We consider that the implementation of the State's intention to introduce the new category of Virtual Net Billing in the Plan for the Production of Electricity from RES for Own Consumption will increase the problem of network saturation, with an impact on the Net Metering and Net Billing self-consumption systems, That is why we propose that this intention be revised."
What SEAPEK argues is that the formalization of the decision to use photovoltaics in places other than the headquarters of a business will burden the network in some areas, thus limiting or eliminating the ability of residential consumers or small businesses to use for their own use the netting systems, ie net metering and net billing. As mentioned, if Virtual Net Billing is applied, it is very likely that in several communities or even suburban areas, virtual photovoltaic parks will be installed, to serve businesses operating in other areas, with the result that residents or entrepreneurs of the areas where Virtual Net Billing will be installed cannot install their own self-production systems, due to network saturation;
They fear market contraction
However, we are informed that there is another aspect of disagreement of some companies operating in RES with Virtual Net Billing. These are companies that are active in both the production and supply of electricity (in the transitional competition arrangement) or intend to operate as suppliers. These companies, according to the information, do not favor the expansion of the practice of virtual photovoltaics for self-consumption, as this, especially if it is disseminated, will affect the turnover of suppliers and private energy producers destined for the competitive market. In short, the more entrepreneurs produce through Virtual Net Billing to meet their own electricity needs, reducing their costs, the less energy will be handled - generating significant profits - through the electricity market.
Objection to Ripple Control as well
In its letter to Natasa Pilides, the Cyprus Association of RES Companies also expresses disagreement with the "promotion and implementation of measures using outdated technologies, such as the installation of Remote Control Systems (which) cannot effectively contribute to the proper functioning of the electrical system, at the same time that new technologies, such as smart meters, enable remote power generation systems to be controlled, contributing to the stability of the electrical system."
We remind you that the Transmission and Distribution Operators request that ripple control be added to the technical requirements for the installation of new residential photovoltaics, so that the Transmission Operator can control their operation and disconnect them when necessary for the safety of the system.
Instead of the mandatory installation of ripple control (which entails some cost for the owner of the house and some additions to the building), SEAPEK proposes the "utilization of any reserve in smart meters held by the Directorate of Networks - EAC - for their installation in all new households applying for the installation of Net Metering photovoltaic systems. In this way", the association argues, "there will be the possibility of controlling the electricity production by the Operators and ensuring the energy security of the country".
The responsibilities of the managers according to the RES companies
Elsewhere in the letter to the minister, SEAPEK expresses its strong dissatisfaction with the call of the Transmission and Distribution operators to stop approving new licenses for the installation of residential photovoltaics until a new plan is approved, with additional technical requirements for the safety of the system. "The imposition of the above measure will prevent the further penetration of RES in the energy mix of Cyprus, at a particularly sensitive time, when there are strong increases in energy costs", points out the association of RES companies. He also criticizes the responsibilities that exist for the problems in the network: "Unfortunately, we can only point out that the timeless inertia and inadequacy of the Operators (TSOC and DSO) to implement the Energy Planning of Cyprus over the last 15 years for the Green Transition, but also to carry out the terms of reference and objectives of their mission arising from the relevant legislation, which is supervised by CERA, results in the saturation of the country's network. This led to the (recent) forced disconnection of small self-consumption photovoltaic systems, to address the emergency created to ensure the stability of the electrical system."
