In Cyprus, the RED II and IEMD directives are in draft form but not yet implemented. The draft law, Promotion and Encouragement of the Use of Renewable Energy Sources, outlines a framework for Renewable Energy Communities (RECs), with the Cyprus Energy Regulatory Authority (CERA) responsible for drafting the enabling framework, assessing barriers, and identifying REC potentials in Cyprus.
While CERA and TSOC have developed regulations for a competitive electricity market, they do not yet include provisions for energy communities. As the regulatory body, CERA is responsible for ensuring energy communities pay fair, cost-reflective, transparent, and non-discriminatory network charges. CERA also aims to make information on support measures available to all stakeholders, including vulnerable consumers, renewable energy suppliers, and service providers.
Under regulation 107(I)/2022, article 21, government and local authorities are required to integrate renewable energy in early planning stages for urban and industrial development, including heating, cooling, and energy infrastructure. Authorities are encouraged to incorporate renewable heating and cooling in urban plans and collaborate with grid operators to include provisions for self-consumption and energy efficiency.
Regulation 130(I)/2021 defines Energy Communities, outlining their rights to participate across borders, manage distribution systems, establish agreements with operators, and be charged appropriate network fees. To prevent discrimination, regulations ensure these communities do not harm other grid users.
The Framework for the creation of energy communities is now establish and incorporate in the legislation and regulation of Cyprus. It is now possible to create Citizens' Energy Communities and Renewable Energy Communities under certain conditions .
The regulation 107(I)/2022, article 37, permits energy communities to generate, consume, store, and sell renewable energy among members. Communities can access energy markets directly or through representation, maintaining member rights as end consumers.
Cyprus through CERA held a Public Consultation on the Draft Regulatory Decision on "Regulatory Framework for the Activation of Active Customers and Self-Consumers of Energy from Renewable Sources" and Public Consultation on the Draft Regulatory Decision on "Regulatory Framework for Promoting and Facilitating the Development of Citizen Energy Communities and Renewable Energy Communities which have been adapted into the regulation mentioned above.
Another, way of promoting Community Energy framework is through Prosumers. Prosumers are very generally defined as autonomous producers that generate electricity for own consumption. The Support Scheme for RES for own consumption 2020 facilitates the installation of ground-mounted PV and/or biomass/biogas installations that will not be connected to the grid. In addition, successful applicants under the net-metering schemes can be considered prosumers. The Support Scheme for RES for own consumption 2020 and Support Scheme for RES and Energy Efficiency 2021 provide subsidies for the purchase of PV that will operate under a net-metering scheme.
In Cyprus, the transposition of the RED II and IEMD directives has not yet taken place, though is in a draft stage. Whilst RED II is yet to be transposed into national legislation, the draft law on Promotion and Encouragement of the Use of Renewable Energy Sources creates a framework for ECs (more specifically RECs) and establishes that the Cyprus Energy Regulatory Authority (CERA) is expected to draft legislation for the enabling framework for energy communities and will be the responsible body for conduction of an assessment of the barriers and potentials for RECs in Cyprus.
CERA along TSOC developed regulations regarding Competitive Electricity Market, but it does not mention EC. The framework for Energy Communities in Cyprus is still under development
CERA who is the responsible body for the development of EC and the REC must ensure that the EC:
- assess the payment of fair compensation to the TSO or the DSO, as the case may be, to facilitate the transfers of electricity within the energy communities to determine that such payment is fair
- ensure that they are subject to network charges that are transparent, non-discriminatory and reflect costs, in accordance with the provisions of Article 18 of Regulation (EU) 2019/943, ensuring that contribute in an adequate and balanced manner to the sharing of the overall costs of the system
- ensure that, in terms of consumption self-produced electricity, they pay network charges that reflect costs, are transparent and non-discriminatory, with separate information on the electricity used electricity supplied to the grid and electricity that consumed from the grid, in accordance with the provisions of (9) of Article 5 and the provisions of Article 5 18 of Regulation (EU) 2019/943, ensuring that contribute in an adequate and balanced manner to sharing of the overall costs of the system
CERA with the involvement of other government departments, local and regional authorities, bodies, institutions and organizations, ensures that, information on support measures is made available to all stakeholders, including consumers, low-income consumers, vulnerable consumers, self-consumers of renewable energy and renewable energy communities, manufacturers, installers, architects, engineers, suppliers of equipment and heating, cooling and electricity systems and suppliers of renewable energy-compatible vehicles and intelligent transport systems
From the regulation 107(I)/2022 - Promotion and Encouragement of the Use of Renewable Energy Sources, article 21 from the mentioned, legislation indicates the obligation of the integration and the development of renewable resources energy.
All relevant authorities, including government departments and agencies, independent authorities, and organizations, as well as local authorities, shall regulate the integration and development of renewable energy, including renewable energy self-consumption and renewable energy communities, as well as the use of unavoidable waste heating and cooling in planning, including-
- early spatial planning; and
- the design, construction and renovation of urban, industrial, and industrial infrastructure, urban, industrial, commercial, and residential areas and energy infrastructure, including electricity, district heating and cooling, gas and natural gas networks, and alternative fuels.
All competent authorities referred to in the provisions of subsection (1) shall encourage local administrative bodies to include renewable heating and cooling systems in the urban planning of urban infrastructure, as appropriate, and to consult with grid operators to reflect the impact of energy efficiency and demand response programs, as well as specific provisions for renewable energy self-consumption and renewable energy communities.
According to the regulation 130(i)/2021 – Regulation for Electricity market, mentions regarding the meaning of Energy Communities and the regulatory framework of which the EC will be favourable. Also, the regulation mentions some of the appropriate procedures to ensure the rights for Energy communities,
- To be able for cross-border participation
- have the right to own, develop, acquire, or lease distribution systems and run them independently, subject to the duties applicable to distribution system operators under the provisions of this Act, in a way that guarantees that:
- may establish an agreement with regard to the operation of their network with a relevant distribution system operator or distribution system operator transmission system operator with whom they are their network is connected to
- are subject to adequate network charges at the points of connection between their network and the distribution network outside the energy and that those network charges include separate information on the electricity supplied to the distribution network and the electricity consumed by the distribution network outside the civil energy community, in accordance with the provisions of the regulation
- citizen energy communities do not bring about discriminate against or harm customers who remain connected to the system distribution system.
However, a consultant has been hired to prepare the regulatory framework, which is expected to be put to public consultation in the spring of 2024 (as of CERA announcement).
Some other activities that Energy Communities are allowed to do that is embedded to the REC II as mentioned in the regulation 107(I)/2022 article 37 - Promotion and Encouragement of the Use of Renewable Energy Sources,
- generate, consume, store, and sell the energy from RES between themselves through renewable energy contracts
- share, within the renewable energy community, the renewable energy produced by the renewable energy community's owned generating units, without prejudice to the other requirements of this Article and the safeguarding of the rights and obligations of the members of the renewable energy community as final consumers
- gain access to all appropriate energy markets, both directly and directly and through cumulative representation, in a non-discriminatory manner.
Cyprus through CERA held a Public Consultation on the Draft Regulatory Decision on "Regulatory Framework for the Activation of Active Customers and Self-Consumers of Energy from Renewable Sources" and Public Consultation on the Draft Regulatory Decision on "Regulatory Framework for Promoting and Facilitating the Development of Citizen Energy Communities and Renewable Energy Communities which have been adapted into the regulation mentioned above.
