- EAC - DSO: The DSO is responsible for the operation, maintenance, and development of the distribution system in a safe and efficient manner.
- TSO Cyprus: The TSO is responsible for the operation, maintenance, and development of the transmission system in a safe and efficient manner.
- CERA: CERA approves and revises the process and policies of the Transmission System and Distribution System as well as network usage fees. Also, CERA's responsibility is to approve, issue instructions and request a review whenever it deems necessary to the Transmission Rules and Distribution System.
- Electricity Suppliers: Electricity suppliers are in charge of buying electricity and reselling it to customers while making sure that market rules are followed. They must follow the distribution rules and electricity market rules if they want to participate.
- Electricity Producers : they must follow Grid Compliance & Power Generation and run power plants effectively while adhering to grid connection guidelines. Also, they need to make sure that they properly coordinating of the dispatching of electricity.
A single DSO is designated by Law 130(I)/2021 and other regulatory frameworks to guarantee non-discriminatory access to the electrical network. By doing this, disputes and inefficiencies that might result from several DSOs overseeing a comparatively small grid are avoided.
Cyprus has an islanded electrical system, which means it is not connected to any other nation's grid, in contrast to larger nations where several DSOs oversee regional grids. Grid stability, consistent planning, and effective infrastructure investments are all maintained by a single DSO.
Cyprus's size, remote grid, historical monopoly, and regulatory structure make having a single DSO there a sensible and effective decision.
Smart meter penetration rate
According to the latest DSO report from Eurelectric [6] 2020 there is 0% penetration of Smart meter. Currently, there is the Empower project that aims to improve that.
The law that allows CERA to guarantee the employment of smart metering is the Regulation of the Electricity market. According to that, CERA instructed Cyprus DSO to initiate a large-scale roll-out of electricity smart meters from January 2019. The strategic plan is from 2019-2027 Cyprus will have a penetration of smart meters of 75%. According to the decision from CERA RAA 259/2018, has instructed in 2019 the procedures for planning a large-scale rollout with the goal of installing 400,000 smart meters for electricity during 2025-2026. There are plans for Climate neutrality, Energy Efficiency and Renewable Energy penetration in Cyprus’s PPR.
An analytic study for Smart Electricity meter market2024: Global Adoption landscape showed that for Cyprus the penetration rates may vary from 0%-10%.According to TSO and DSO, there are no updates for smart meter penetration. EAC issued a procurement regarding Advanced Metering Infrastructure Rollout in 2021, but there are no other updates.
Policies for digitalisation of the electricity grid
According to the main regulation for the Electricity market, L.130(I)2021 article 70 gives full responsibility to Cyprus’ TSOC to promote and improve the digitalisation of the transmission system. Also, there is a 10-year program approved by CERA and TSOC for the development of the transition system of Cyprus.
Additionally, the KIOS research centre is accountable for the project, EMPOWER [7] project brings together all the key stakeholders of the electric energy sector (DSO, TSO, etc) in order to develop sustainable and intelligent technologies for the electric power system of Cyprus. One of the major objectives of EMPOWER is the smart and green evolution of the Cyprus power system infrastructure. The project aims to contribute to the strengthening of the Cyprus electricity system, using smart tools and systems without affecting the stability and reliability of the system.
Rules for islands, isolated grids, microgrids, local grids, etc.
Cyprus throughout the European Directives 2019/944 and 2009/72 asked its members to provide ‘’ consumers clear rights to request smart metering devices and dynamic pricing contracts’’ and manage to accomplish a penetration rate of 80% of smart metering, development of the regulation regarding Electricity Market L.130(I)/2021. This regulation gives CERA the responsibility to develop smart metering in the electricity market. Also, regarding the same regulation suggest new suppliers with large numbers of End users to enable them to choose to use a smart meter.
Total number of active electricity nationwide suppliers: According to CERA, currently 31 participants hold the right to be Electricity suppliers. Although, for households due to the complexity of electricity distribution EAC is the current supplier. Most of the other electricity suppliers, mostly due to their energy coming from RES systems (PV parks), prefer commercial and industrial consumers. The electricity supplied by the active suppliers uses the same distribution network in Cyprus. Currently is easier to take upon clients with STOD-type meters which is a programmable meter that records every half hour. Customers who do not have a STOD-type meter must obtain it by paying the DSO the installation cost, as determined by CERA
CERA, with the Regulatory Decision no. 02/2015 Statement of Regulatory Practice and Methodology of Electricity Tariffs, RAA 208/2015 (Section 8 from the report), issued the Calculation Methodology of the tariffs related to the use of the Transmission and Distribution Network, the recovery of the expenses of the C-TSO and the provision of ancillary services and long-term reserve. By Decision No. 97/2017, CERA approved the amount of these tariffs, which are part of the final Supply Tariff, and approved their recovery through energy pricing.
The tariff methodologies applied by CERA are important to regulate them and must follow certain objectives,
- reflect the cost of service to increase economic efficiency
- allow the reasonable possibility of recovering efficient costs
- be fair and non-discriminatory unless justified by other tariff objectives, such as increasing economic efficiency
- avoid cross-subsidies between various activities in the electricity sector (i.e., generation, transmission system ownership, transmission system operation, distribution system ownership, distribution system operation, and supply);
- be straightforward, transparent, and predictable
- encourage consumers to make efficient consumption decisions
- be consistent with the Republic of Cyprus's clear environmental objectives
- promote electricity supply security
- permit the recovery of efficiently incurred costs associated with public service obligations and the promotion of electricity generation from renewable energy sources and high-efficiency cogeneration
- offer incentives to regulated firms to operate efficiently
- facilitate the efficiency and quality of the services rendered by licensees.
Currently, there are 5 types of Tariffs,
- Commercial and Industrial Use
- Code 10 - Bi-monthly Low Voltage Single Rate Commercial Use Tariff
- Code 20 - Bi-monthly Low Voltage Single Rate Industrial Use Tariff
- Code 30 - Monthly Low Voltage Seasonal Two-Rate Commercial and Industrial Use Tariff
- Code 40 - Monthly Medium Voltage Seasonal Two-Rate Commercial and Industrial Use Tariff
- Code 50 - Monthly High Voltage Seasonal Two-Rate Commercial and Industrial Use Tariff
- Domestic Use
- Code 01 - Single Rate Domestic Use Tariff
- Code 02 - Two Rate Domestic Use Tariff
- Code 08 - Domestic Use Special Tariff for Specific Categories of Vulnerable Customers
- Storage of Thermal Energy
- Water Pumpin
- Public Lighting
Tariff methodology on islands, microgrids, local grids, etc.
The Wholesale Electricity Tariff is adjusted based on the Weighted Average Fuel Cost announced by EAC every month and the Approved Energy Charge Clause Factor for High Voltage consumers, approved by CERA every 6 months, which is adjusted by the high voltage loss coefficient of each month based on the relevant decision of CERA (no. 375/2021). The Average Weighted Fuel Cost of each month is presented on the EAC website at:
https://www.eac.com.cy/EL/RegulatedActivities/Supply/tariffs/Pages/Fuel-Cost.aspx
The approved high voltage fuel clause factor and the high voltage monthly loss factor based on the relevant decision of CERA are shown in the table as shown on the website above. Specifically, the Adjusted D-X for a specific time is equal to the D-X at the Base Fuel Price (ie, with a fuel price of €300/MT), differentiated by the product of the difference between the Weighted Average and Base Fuel Cost times the Approved Clause Factor Fuel to High Voltage Network consumers applicable in the given month by the High Voltage loss factor (ie, by the Adjusted Fuel Clause Factor for High Voltage consumers).
Relevant policies
• Regulation on Electricity Market 130(i)/2021
• Regulatory Decision No. 02/2015 (RAA 208/2015) "Statement of Regulatory Practice and Electricity Pricing Methodology".
• THE LAWS ON REGULATING THE ELECTRICITY MARKET OF 2003 TO 2012, N. 122(I)/2003 TO N. 211(I)/2012 REGULATORY DECISION NO 02/2015
• Calculation Methodology for the Adjustment of Fuel Basic Tariffs and Energy Purchase Price from RES-E
• The Energy Efficiency in End-Use and Energy Services Laws of 2009 and 2012 and their amendments (Law 31(I)/2009, Law 53(I)/2012
Are there existing caps for RES installed capacity in the network?
Depending on how much the grid (on each substation) can handle the cap can be seen on the Hosting capacity Map. The RES capacity can vary from 2-10kW for Net Metering,10kW-8MW Net billing ETC.
RES-E Hosting Capacity is the maximum RES capacity that can be connected at the transmission substation level. The Hosting Capacity Map was developed by both Distribution System Operator (DSO) and Transmission System Operator of Cyprus (TSOC) as part of the Cyprus Transmission and Distribution System Redesign Study for 2021-2030, prepared as per the Cyprus Regulatory Authority Decision 02/2019 and RAA 204/2019.
The Hosting Capacity Map is essentially a tool, which geographically presents the RES-E Reception Capacity that can be connected per Transmission Substation. Also, the Available RES-E Capacity is presented, i.e. the remaining available capacity to integrate RES-E systems which is obtained by subtracting from the Reception Capacity of the already installed RES-E systems (the installed systems also include the systems that have already accepted the terms connection).
What are the curtailment rules for RES generation?
According to the Cyprus regulation, the TSO of Cyprus has the obligation when seems necessary in order to protect the grid, to restrict electricity generation from RES to ensure the orderly operation of the electrical system. The restriction of Electricity Production from RES is carried out using specialized tools and algorithms to ensure, to the maximum extent possible, the fair distribution of cuts to all RES units controlled by the Transmission System.
Who is responsible for voltage balancing, frequency reserve, unit dispatching, electrical system management?
Cyprus DSO
Who has access to metering data?
Cyprus DSO is eligible, to access the meters to collect appropriate data. According to the L.130(I)/2021 consumers must allow the DSO to collect data for their consumption.