Filenews 26 May 2025 - by Chrysanthos Manoli
Despite the continued inability of state services and organizations, as well as the private energy sector, to deal with the growing problems caused by the overproduction of electricity from RES systems, in periods of low consumption, resulting in an increase every year in the percentage of green energy that is not utilized in the electricity system, the Government proceeds to harmonize with a recent EU Directive, in order to reduce the overall time for the evaluation and approval of applications for the operation of new RES parks, but now also for storage systems and heat pumps.
Last Thursday, a bill was submitted to the Plenary Session of the Parliament that amends the law on the Promotion and Encouragement of the Use of Renewable Energy Sources. The requested amendment aims to harmonize the Cypriot legislation with Directive 2023/2413 on the promotion of energy from renewable sources and with Directive 2024/1711, with regard to improving the planning of the Union's electricity market". The harmonization regarding the regulations included in the bill should have been done by the Cypriot side by July 2024.
One-stop shop
The bill replaces and modernizes Article 18 of the Basic Law of 2022, which concerns the designation, by decision of the Council of Ministers, of a "One Stop Shop" Service, which coordinates, provides guidance and facilitates applicants for investments in RES for the entire administrative licensing process.
- With its decision in February 2023, the Council of Ministers had designated the "Business Facilitation Unit" of the Ministry of Energy, Trade and Industry as the "Single Service Service".
- The Unified Service Service, the bill states, will be the applicant's only point of contact throughout the licensing process. The permitting process that will go through the Single Window Service will include all relevant administrative permits for the construction, renewal and operation of renewable energy plants, including plants that combine different renewable energy sources, heat pumps, "co-located energy storage" (batteries in the same space as RES production systems), of electricity and thermal energy installations, the fixed assets required to connect renewable energy plants, heat pumps and storage plants to the transmission or distribution network.
New timetables
The bill introduces new paragraphs in Article 18 in order to set new timetables for the completion of the licensing process.
Specifically:
- The Unified Service shall inform the applicant of the completeness of his/her application within:
(a) forty-five (45) days for renewable energy production plants located outside renewable energy acceleration areas
(b) thirty (30) days for renewable energy production plants located within renewable energy acceleration areas. - In case the applicant has not sent all the required information and certificates required for the processing of the application, the Unified Service shall inform the applicant in writing and request him/her to submit, without undue delay, a complete application within fifteen (15) days.
- The Unified Service shall inform the applicant of the completeness of his/her application within fifteen (15) days from the receipt of the required
missing information. In the event that the applicant fails to submit the
required information and certificates within the timetable referred to in subparagraph (2), his/her application will be rejected as incomplete. - The date of recognition of the completeness of the application by the Unified Service Service is the beginning of the licensing process.
The licensing process
In accordance with the new Article 18C, the Universal Service and all competent authorities involved in the licensing process shall ensure that the licensing process does not exceed:
- two (2) years for renewable energy projects
- three (3) years for offshore renewable energy projects.
- twelve (12) months for the following cases, including their connection to the grid:
(i) new installations of renewable energy plants with an electrical capacity of less than one hundred and fifty kilowatts (150 kW);
(ii) co-located energy storage installations located
in the same area as renewable energy installations with a capacity of less than 150 kW.
(iii) renewal of renewable energy plants.
Where duly justified by exceptional circumstances, the duration of the authorisation procedure referred to in paragraphs (a) and (b) of subparagraph (1) may be extended up to six (6) additional months.
