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Next Previous Strict decision of CERA for the photovoltaics of EAC HOME • INSIDER • CYPRUS • Strict decision of CERA for the photovoltaics of EAC
& nbsp & nbspΧρύσανθος & nbsp; Μανώλη & nbsp; & nbsp ;
A draft regulatory decision that will be discussed and may provoke reactions in the EAC was published yesterday in the Official Gazette of the Republic by the Cyprus Energy Regulatory Authority (CERA), regarding the penetration of the EAC in Renewable Energy Sources (GDP).
The decision was put to public consultation and those who are interested can submit positions and objections to CERA within four weeks.
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Considering that the EAC “is, at this stage, de facto the largest and only vertically integrated electricity company, which ranks the EAC (main regulatory activity) of the EAC in a position of power in the wholesale electricity market”, that “The EAC's Procurement BRD is in a position of strength in the electricity retail market” and concluding that “the electricity retail market of Cyprus is classified as an extremely concentrated market” and that “there is a lack of effective competition in the wholesale and retail electricity markets. EAC “, CERA decided the following, among others:
To impose as an appropriate, necessary and proportionate measure for the promotion of effective competition and to ensure the smooth operation of the electricity market, the non-issuance to the EAC of any General License and/or Construction License and/or Exemption from Construction License for commercial purposes by systems RES-H until satisfactory competition develops in the Wholesale Electricity Market, according to the rate of decline of the Market Concentration Index “Herfindahl-Hirschman Index (HHI)”, as described above. That is, no new license at this stage in the EAC for the construction of a RES park. The EAC can proceed with the implementation of the licenses that have already been approved by CERA and which have a total power of about 60 megawatts. To invite the EAC to take all necessary actions for the implementation of the projects already licensed by CERA for which it is the licensee and/or participates in the ownership status of the licensee. The above regulation is temporary, according to CERA, it will be reviewed annually and will be valid until it is amended by CERA, after evaluating the developments regarding the conditions of the electricity market in relation to the objectives of the Republic of Cyprus for RES-H use and the implementation of the provisions of the European Union Plan for the green transition “Adjustment to the 55% target (Fit package for 55)”. & nbsp; & nbsp; & nbsp; & nbsp; To notify the above measures to the European Commission and to implement them after their approval by the Commission and as provided in paragraph (3) of Article 11 & nbsp; of the Electricity Market Regulation Law of 2021. This part of the decision essentially means that the Commission is called by CERA to take a position on whether or not, with an annual review, the penetration of the EAC in RES, until the competition is strengthened.