Filenews 29 July 2023
Two associations of renewable energy producers expressed diametrically opposed positions yesterday, regarding the general policy framework and the public consultation organized by the Ministry of Energy for the installation of storage systems (batteries) for electricity from renewable sources.
The Electricity Market Association (SAH, whose members are mainly owners of photovoltaic parks and supply companies) disagrees with the policy framework of the ministry and argues that this favours EAC and harms the competitive market.
The Cyprus Wind Energy Association (IAC) supports the ministry's plans and even calls for an end to the transitional electricity market arrangement (with a temporary suspension of the operations of "suppliers-intermediaries") until real competition in electricity supply is ensured.
– The draft submitted for public consultation (until 10/8) by the Ministry of Energy will be submitted (after its finalization) for approval by the Office of the Commissioner for State Aid Control and/or the Directorate General for Competition of the European Commission.
The Electricity Market Association (SAI) argues that the plan put to consultation by the ministry "poses an immediate and serious risk to the establishment and operation of a competitive electricity market". It also argues that it "introduces unjustified and disproportionate discrimination in favour of the dominant EAC, leading in practice to the implementation of the Single Buyer Model. The implementation of this model, in addition to the collapse of the Transitional Electricity Market Arrangement, will render the competitive electricity market obsolete."
It stresses the need for alignment (of the storage policy framework) with the legislative framework and approved electricity market regulations.
– In its own announcement, the Cyprus Wind Energy Association (IAC) agrees with the ministry and notes that "the installation of a central storage system, owned by EAC (as owner of the electricity transmission and distribution networks) and operated by the Cyprus Transmission System Operator (TSO) is a necessary strategic infrastructure and public interest project, which must be under the control of the state".
Elsewhere, IAC argues that "some clearly want in opaque ways to remain permanent – the current long transitional arrangement, which should have expired on 30/06/19 (CERA's regulatory decision no. 4/2017, date. 30/06/17), while continuous extensions are given, which seem to suit the maintenance of an oligopolistic regime that evolves with 3-4 private companies".
Finally, he emphasizes that "it is time for the Ministry of Energy and especially CERA to seriously consider the termination of the transitional arrangement, i.e. the "intermediary" suppliers, until the operation of hybrid RES plants and new independent producers from conventional fuels and natural gas, so that the penetration of independent producers reaches a satisfactory level and allows healthy and real competition in the supply of electricity.
