REC/CEC definitions

Overall assesment

The transposition process in Cyprus has started, but is not completed yet. The Laws that are relevant for the energy sector can be found at the website of the Cyprus Energy Regulatory Authority (CERA). A new Law 130(I)/2021 for the Regulation of the Electricity Market has been recently 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 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 not been transposed yet, though a draft Law on the Promotion and Encouragement of the Use of Renewable Energy Sources has been open to a public consultation process. The results of this process are available here. The draft Law also includes the definition of RECs and reference that CERA should draft regulations setting an enabling framework for RECs. CERA is also mentioned in the draft 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. At the moment the draft Renewables Law is at the stage of the legal evaluation. The timeline set for the completion of the transposition process is 2021-2022.

Detailed assesment

Criteria of EU definition reflected in national definition

The definition of CECs and RECs in the Electricity Law and the draft Renewables laws are a copy paste from the Directives. This means that there is reference to the open and voluntary membership, autonomy and requirement of proximity for the RECs, but no details on what these terms mean. Members of a REC can be natural persons, SMEs or local authorities, including municipalities. For CECs there is reference to open and voluntary membership and effective control and members can be natural persons, local authorities, including municipalities, or small businesses.

Level of detail in the elaboration of principles contained in EU criteria

There is no detail provided with regards to what these terms mean.

Clearly defined purpose

Copy-paste of the Directive.

ICA cooperative governance principles reflected

Partly. As the draft law copy pastes the Directives, the ICA principles are reflected in the same way that they are reflected there.

Legal entities allowed

Not specified.

Citizen participation is ensured

The national definition does not ensure that citizens always need to be a member of a REC. There is no minimum number of members that can set up a REC.

Designated authority to oversee

Under the Law on the regulation of the Electricity Market, CERA should specify with a regulatory decision the enabling framework for CECs. The draft Law on the Promotion and Encouragement of the Use of RES specifies that for the purpose of the provisions that touch upon the enabling framework and the assessment of barriers and potential, the issues that have to do with the development of electricity generation projects from renewable sources from RECs will be regulated by the CERA. CERA should also take the specificities of RECs into account when developing support schemes.

Number of definitions

2 – CECs/RECs.

Coherency between both definitions

The 2 definitions follow exactly the EU definitions, as they are a copy paste. The only connection made between them is the reference that their enabling framework will be regulated by CERA.