Filenews 3 August 2024 - by Eleftheria Paizanou
The Republic of Cyprus automatically derogated from the application of the European Directive on common rules for the internal market in electricity regarding the ownership, development, management or operation of energy storage facilities.
Energy Minister George Papanastasiou forwarded a relevant letter to the members of the House Standing Committee on Energy, requesting information on the request submitted by the Republic to the European Commission (EU), in order to be exempted from the obligation of the tendering process by third parties for the development, management and operation of electricity storage facilities, so that these actions can be carried out by the Cyprus Transmission System Operator.
According to the minister, last December he submitted through the Permanent Representation of the Republic to the EU a request for a derogation from Article 40 of the Directive on rules for the internal energy market, based on the existence of substantial problems in the operation of the small isolated system of Cyprus.
Last April, in a reply letter, the European Commission states that on the basis of the wording of the Directive, Cyprus is granted an automatic derogation from the tender requirement, both with regard to Article 40(4), i.e. the procurement of ancillary services by the transmission system operator, and with regard to Article 54.
However, before Cyprus allows its transmission operator to own, develop, manage and operate energy storage facilities without prior invitation, CERA must have assessed the necessity of such a derogation, namely that the entrustment of such facilities or non-frequency ancillary services to the transmission system operator is necessary for the efficient, reliable and safe operation of the transmission system in Cyprus and should have given its approval".
The European Commission informed the Republic that it cannot take the necessary decision before July 14, when the EU Directive entered into force. Until then, Cyprus would already benefit from the automatic derogation in the amended Electricity Directive, calling into question the usefulness of a separate derogation under Article 66.
Concluding, the Minister of Energy underlines that due to the fact that the Directive entered into force last month, the automatic derogation applies for the Republic, adding that "the request submitted for the derogation of specific articles from the Directive is now obsolete.
