Overall assessment

Updated December 2023

The Law 130(I)/2021 for the Regulation of the Electricity Market has been published transposing the provisions of the Electricity Directive 2019/944. This Law includes a definition for CECs and RECs and lays down the responsibilities of the Cyprus Energy Regulatory Authority (CERA), among which is to draft an enabling framework for CECs at a later stage with regulatory decisions, so that they are able to participate in the market without discrimination (see article 123). The Renewables Directive (RED II) has been partly transposed with the Law 4902/2022 on the Promotion and Encouragement of the Use of Renewable Energy Sources. This Law includes the definition of RECs and mentions that CERA should draft regulations setting an enabling framework for RECs. CERA is also mentioned in the law as the responsible body to conduct the assessment for barriers and potential for RECs in Cyprus and it should also take the specificities of RECs into account when developing support schemes. Following such legal requirements, CERA published a tender titled 'Provision of advisory services for the determination of guidelines regarding the promotion of active customers and self-consumers from renewable sources, the facilitation of the establishment of Citizen Energy Communities and Renewable Energy Communities, Demand Response through Cumulative Representation, as well as recommendations for the establishment of respective regulatory frameworks’. The deadline for the submission of bids was 2 May 2023.

Overall, the provisions for RECs and CECs are a copy paste of the EU Directives, without further elaboration of what each term means at the national level. There is no enabling framework in place or specific support measures for RECs yet, although further regulatory provisions are expected to be published by CERA.

Detailed assessment

Assessment of obstacles and potential for development of ECs

Not undertaken, but CERA is responsible to do it.

Removal of unjustified regulatory & administrative barriers

Article 5(1)(κστ) of the Electricity Law specifies that CERA is responsible to monitor the removal of unreasonable obstacles and constraints on the development of consumption of self-generated electricity produced by RECs and CECs. Also, article 37(2)(β) of the law on RES states that the competent authority designs an enabling framework for RECs to make sure that unjustified regulatory barriers for RECs are removed.

DSO duties around cooperation with ECs and facilitation of energy sharing

This is mentioned in article 37(2)(δ) of the law on RES, but it doesn’t specify how the DSO will facilitate this cooperation – copy paste

Fair, proportionate, and transparent registration & licensing procedures

This is mentioned in article 37(2)(ε) of the law on RES – copy paste

Incentives connected to network tariffs based on a CBA

This is mentioned in article 37(2)(ε) of the law on RES. Also, article 22(13)(a) of the Electricity Law specifies that CERA ensures that RECs are subject to network charges which reflect costs, as well as fees, contributions and taxes so that these communities contribute in a way that is sufficient, fair and balanced in the overall cost sharing of the electrical system. Subsection (b) states that for the purposes of paragraph (a), CERA develops transparent cost-benefit analysis of distributed energy sources.

Non-discriminatory treatment as market participant

Not addressed in the transposition.

Accessibility to low-income & vulnerable households

This is mentioned in article 37(2)(ζ) of the law on RES – copy paste

Tools to access finance

This is mentioned in article 37(2)(η) of the law on RES – copy paste

Tools to access information

This is mentioned in article 37(2)(η) of the law on RES. Article 19 of the Law on RES states that the competent authority, with the participation of other government agencies, local and regional authorities, agencies, institutions and organizations, ensures that information on support measures is available to all concerned, including RECs. It should also make sure that information programs are drawn up, raising awareness, providing instructions or training for informing citizens about the ways they can exercise their rights as active customers and also in the context of RECs.

Regulatory capacity building for public authorities

This is mentioned in article 37(2)(θ) of the law on RES – copy paste

NECP reporting on enabling frameworks

Article 37(3) of the Law on RES specifies that the main elements regarding the regulatory decision issued pursuant to the provisions on the enabling framework for RECs and/or the support schemes and their implementation are included in the updates of the National Energy Plan and the Climate and progress reports in accordance with Regulation (EU) 2018/1999.

Support Scheme adapted for RECs

Article 37(7) of the Law on RES states that, subject to the provisions of the Public Audit Reinforcements Law, the competent authority takes into account, in the context of planning support schemes, the particularities of RECs to allow them to compete for support on an equal footing with other market participants. No such support measures are in place yet.

Article 19 of the Law on RES states that the competent authority, with the participation of other government agencies, local and regional authorities, agencies, institutions and organizations, ensures that information on support measures is available to all concerned, including RECs.