EU energy communities policy tracker

Not undertaken, but CERA is responsible to do it.

There is no specific quantitative or qualitative target for the development of energy communities in Cyprus. 

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.

Furthermore, the impact of energy communities should by law be considered in the development of the Ten Year Distribution Network Development Plan (as well as the impact of specific activities, such as energy efficiency, and self-consumption of renewables). 

Provisions promoting the development of renewable energy sources (RES) must be integrated by all relevant authorities, including government departments and services, independent bodies and organisations, and local authorities. These measures encompass support for self-consumption, Renewable Energy Communities (RECs), and the use of waste heat and cooling across spatial and urban planning processes, construction and renovation activities, and the planning of associated energy infrastructure.
 

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

1. Distribution: ECs also have the right to own, establish, purchase or lease distribution networks and to manage them autonomously, subject to DSO obligations.
2. Supply: Until recently, Cyprus had operated a regulated market with a single supplier, energy communities cannot obtain a full supply licence. This activity therefore falls outside the permitted scope for energy communities. An exception may apply to CECs that own and manage their own network (distribution and supply). However, this is set to change as the electricity market has been opened since October 2025 thereby giving consumers access to different suppliers.
3. RES-E production: The regulatory framework allows energy communities to participate in a range of activities, including electricity generation, storage, aggregation and energy services. Under defined conditions, Citizen Energy Communities (CECs) are also permitted to undertake electricity supply and distribution. It further introduces mechanisms for smart-meter-based settlement, flexibility participation and market access, though the full operation of these measures depends on the completion of the smart meter rollout, currently scheduled for 2027.
4. Energy efficiency / renovations: no specific provisions
5. Heating and cooling: no specific provisions
6. E-mobility: no specific provisions

Non-discriminatory treatment as market participant: Not addressed in the transposition.

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 responsibilities 

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

Incentives (tariff, tax exemptions, etc)  

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.

Energy communities should be able to benefit from the Virtual Net Billing scheme, but the operational details have not yet been produced. 

Renewable energy communities have to clearly outline in their statute/other founding documents their non-profit nature, how they plan to use their surplus and what actions they plan to take to address energy poverty and support households in situations of vulnerability. This is the same for CECs and these provisions are assessed by CERA during registration.

This is further specified in The Regulatory Decision adopted by the Cyprus Energy Regulatory Authority (CERA) on energy communities: it introduces provisions to ensure that a share of the surpluses generated by Renewable Energy Communities (RECs) and Citizen Energy Communities (CECs) is directed toward social and environmental objectives. These include supporting vulnerable consumers, addressing energy poverty, promoting energy efficiency and encouraging the deployment of renewable energy sources (RES). In particular, point 3.4(9) of the Decision authorises energy communities to implement measures aimed at protecting vulnerable consumers and alleviating energy poverty, as defined in their Articles of Association, such as providing or offsetting energy costs or undertaking other actions that reduce household energy consumption.

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.

Cyprus has stated in its Social Climate Plan that it will set up a national One Stop Shop for energy communities, which will provide legal and permitting support, funding, and organise awareness raising campaigns.

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

Energy communities are mentioned in the 2025 country specific report for Cyprus, but not in the country specific recommendations.