EAC's President, George Petrou, spoke today about restrictions and regulations that do not allow the EAC to develop as it would like, speaking at a press conference during which he presented the positions of the Authority in relation to the possible entry of CYTA into the energy sector and the attitude of the state, the exclusion of the organization from the Electricity Market Association, the rationale for the RES energy cuts and electricity sufficiency.
In relation to CYTA's activity in the energy market (expected to be discussed in today's plenary session), he said that "the issue is not whether another organization can operate in the market. The real issue is in what form, under what conditions and with what consequences it will be done in the public interest."
He added that the EAC considers that in a small and sensitive market such as the Cypriot one, such a development should be examined with great care, because it will create imbalances, distortions in competition and ultimately pressure to increase the cost of electricity. He highlighted the peculiarities of the Cypriot electricity market, noting that it is an isolated system, with increased technical and strategic requirements. "If the goal is better services and more choice for the consumer, this can also be achieved through partnerships," he said.
At the same time, he raised the issue of whether it is a complete change of role and the creation of a second public energy pillar. "Then we are talking about a matter of public policy and institutional planning, which requires serious evaluation, consultation and a clear political decision. This is the essential question that needs to be answered," he said.
George Petrou noted that if CYTA enters the energy market, it will compete with the EAC not only in terms of consumers, but also in investments in photovoltaic parks. They should, he noted, let the EAC invest in parks as this is the only way to reduce the cost of electricity. He added that these have also been put before the state, stating that "the major shareholder has not been heard much lately". He also spoke of restrictions and regulations that do not allow the organization to develop as it would like.
At the same time, he referred to the promotion of companies, with the aim of securing licenses for photovoltaics, avoiding to say specific names. "As for the new Minister, we have our next meeting next month and we have already had two meetings. It is informed, it takes positions and I hope they move forward faster than previous Governments," he added.
References to the Electricity Market Association
Referring to the Electricity Market Association (SAH), George Petrou said that "it mainly expresses private business interests in the field of renewable energy sources", noting that the Electricity Authority of Cyprus (EAC) was a founding member of the SAI, and then "the other members of the Association proceeded to amend the statutes, a development that allowed the exclusion of the EAC from its participation".
He added that, subsequently, "another company joined the EAC, whose President also took over the presidency of the Association. This is, according to what has been mentioned, a company that does not operate as a producer or supplier of electricity, but holds a construction license issued by the Cyprus Energy Regulatory Authority (CERA)," he said.
He noted that this development raises issues as to the representativeness and institutional balance of the Association, as well as to the credibility of its public positions on the operation of the electricity market.
Asked to comment on the reasons for the expulsion of the EAC and the accusations of undermining the market, George Petrou referred to Petros Andreou, who had participated in the Association, who stated that the EAC had been actively involved in the SAI since its establishment, speaking of "very good and constructive discussions" and underlining that important issues could be resolved through dialogue within the Association. However, as he noted, the position of the other members was that the EAC could not continue to participate.
At the same time, it pointed out that there were naturally conflicting interests between private individuals and the EAC, which often led to disagreements. "We felt that there was a reason to continue our presence, so that the issues could be resolved within the Association and not through public confrontations," he said.
For his part, the EAC President said that questions have been repeatedly asked about the expulsion of the EAC, without differentiating the answers. "It's a club, so it seems that Ilektriki didn't fit there, which certainly sees things very differently," he said.
Energy cuts
Regarding the immediate solutions to avoid energy cuts during the summer season, before the full deployment of storage infrastructure, the director of the distribution system operator, Giorgos Georgiou, stated that "there is a lot of interest from private companies in installing such systems and we are planning to have some connection of these systems by May, beginning of June". He clarified, however, that the cuts cannot be stopped completely, adding that "certainly a comprehensive planning for the installation of storage systems will almost eliminate the cuts, but that will take some time."
Referring to the issue of applications for net metering, George Petrou noted that "there are 11,000 net metering applications", pointing out that "if the supply is allowed to proceed with bilateral contracts, then many will support the final price". At the same time, he stressed that "the Electricity Authority of Cyprus is not in danger, because the knowledge it has is such that it cannot reach", although "the market share will still be limited a little", which – as he said – "means that we will take our measures to be sure that it continues and that this staff that set it up will continue it".
Regarding the zeroing of excess energy from photovoltaics, Giorgos Petrou underlined that "it is not our decision, nor that of the Ministry. We strictly follow the instructions." As he explained, "it is all with instructions given to the Ministry and from the Ministry to us and it is clear in the contract".
On the part of the operator, it was noted that "the relevant provision for the elimination of the surplus energy is provided for in the plan given by the Ministry of Energy, Commerce and Industry in March '24. The first zeroing will take place in the two months of February-March '26 and every three years whatever surpluses we have will be zeroed." As he underlined, "it is not our decision, we are obliged to execute it" and "it is included in the contract that everyone signed".
In relation to the delays in the connection of storage systems, he explained that "the connection implies to a large extent an upgrade of the system, in order to overcome the problem of saturation", while adding that "in the meantime it could be achieved by adopting flexible connections", based on a decision of the Cyprus Energy Regulatory Authority (CERA), "until September '26".
At the same time, he said that "we have found another way to be able to connect these systems", noting that "we are ready to start issuing conditions in a week" and that "a significant number of applications have already been prepared".
Regarding the way the cuts are calculated, Mr. Georgiou explained that they are applied "for system security purposes when production is more than demand", noting that "conventional production can be reduced to a minimum number and beyond that production from renewable sources must be reduced". He added that the Transmission System Operator "monitors production and demand and when there is a need it orders for cuts", starting first with the autonomous systems, the photovoltaic parks.
The Dhekelia Power Plant is necessary
In relation to the Dhekelia Power Generating Station, the necessity of its maintenance was underlined as it is a matter of network safety. The EAC President noted that it is in the process of upgrading and gradually replacing units with the cost of installing Conventional Gas Turbine Units having increased dramatically in the last 2-3 years. However, he said "the maintenance of the Dhekelia Power Plant is required to ensure that there is a second point of uninterrupted electricity production, that there is security of supply and that there will be further penetration of RES".
He added that this is a project of strategic importance, which serves the public interest and enhances the overall safety and stability of our country's electricity system for the benefit of all consumers. "For this reason, its financial treatment must be considered in the context of a broader national energy infrastructure, in a way that ensures its timely implementation and the rational recovery of expenditure," he said.
CNA
