Rules concerning the connection of a new producer, RES, and storage to the grid
As mentioned in the current Transmission Rules and according to the regulations and the parties involved in the electricity grid, the Connection request is submitted either to the distribution system operator (DSO- Electricity Authority of Cyprus-EAC) or the TSO Cyprus. EAC is responsible for RES plants ≤ 8 MW, while the TSO Cyprus is responsible for RES plants >8 MW
According to CERA, the Electricity Market Principles the regulation L. 107(I)/2022(ARTICLE 18, the regulation regarding Electricity market (article 34 and 35 and regulation N.130(I)/2021 (CHAPTER 1 ARTICLE 25).
A prerequisite for participating in the Electricity Market is the possession of a permit in accordance with articles 34 and 35 of the Electricity Market Regulations and the associated licensing Regulations.
Currently, the only parties that participating in the Electricity Market are:
1. Producers with Thermal Units
2. Producers with RES stations
3. Retailers
According to the Regulatory Decision "The Detailed Planning of Diversification of the Framework for Regulating the Operation of the Electricity Market of Cyprus", Cyprus can have more participants in the Electricity market.
For RES projects used for self-consumption can be planned under the net-metering/ net-billing scheme, and the grid connection process is less complicated. The end-users submit their applications with the mandatory documents to the EAC. The application is assessed and authorised, and then the agreement is signed. The final check of the RES is carried out by EAC, and if approved, the system is ready for use.
Depending on the RES plant capacity, the grid connection application is submitted either to the distribution system operator (DSO- Electricity Authority of Cyprus-EAC) or the TSO Cyprus. EAC is responsible for RES plants ≤ 8 MW, while the TSO Cyprus is responsible for RES plants >8 MW. A technical study is attached to the application that proves that all related technical requirements have been met (T 16.8.3 of the Transmission Regulation). After the grid operator has received and examined the application, it shall send a connection offer to the plant developer within 90 working days (sec. T 2.4.5.1, T 2.4.6, D 1.4.1 from Transition and Distribution Regulations accordingly). The project developer must accept the terms for connection within the period specified in the connection offer..
Under the net-metering/ net-billing scheme, the grid connection process is less complicated. The end-users submit their applications with the necessary documents to the EAC and pay an administrative fee of EUR 332,35 plus VAT for the Net Metering application, whereas, for the Net Billing application, the price varies according to geographic limitations. The application is examined, and if it is approved, a net-metering agreement is signed. The RES installation is complete, and a final check is carried out by EAC (Chapter 12 EAC Net-metering Technical Guide).
Specifications for islands, isolated grids, microgrids, local grids, etc.
The authorisation process is simplified for RES projects with a capacity of less than 5 MW and autonomous producers that produce electricity for their own consumption with a capacity of less than 1 MW. Also, PV systems and ground-mounted PV installed in industrial zones or with a maximum installed capacity of 150 kW are exempt from planning permission. Additionally, the grid connection process is simplified for RES installations that use net metering/net-billing schemes.
Possibilities to differentiate RES in scale and technology
According to the EAC website (under Regulated Activities > Renewable Energy), RES systems can be divided into the following categories.
• RES systems for own consumption
o Net Billing (Larger PV, biomass and biogas plants of up to 10 MW are supported through the net-billing scheme for natural and legal persons.
o Net Metering (Subsidies for the purchase and installation of rooftop PV in the domestic sector or
rooftop and ground-installed PV for domestic and private sector (up to 10kW) that will operate under a net-metering scheme for 15 years.
o Net Metering in Public School Buildings (Net metering for 12 years for public schools with PV rooftop installations of up to 20 kW
o Virtual Net Metering/Net Billing
o Charging of Electric Cars
• RES systems in the context of the Transitional Regulation of the Electricity Market
• RES systems with the Final End the Competitive Electricity Market
• RES systems outside the Support Regime Plan
According to the current Transmission and Distribution Rules, Producers with a requested connection power greater than 8 MW or Customers (Consumers) with a requested connection power greater than 12 MVA, who are interested in connecting to the Transmission/Distribution System, need to submit a Connection Application to the System Operator Cyprus Transport (CTSO).
Also, Producers with a requested connection power of up to 8 MW or Customers (Consumers) with a requested connection power of up to 12 MVA, who are interested in connecting to the Transmission/Distribution System, need to submit a Connection Application to the System Operator Distribution (EAC).
Also, according to L.130(I)2021, CERA can grant general permission and an exception from the obligation to hold a license for the following,
• Electricity production from power stations that are not connected to the system transmission or distribution system.
• electricity production facilities with a maximum power of up to 20 kW
• electricity production for self-use up to 30kW
• Electricity Production from RES up to 50kW