Law 130(I)/2021 and the Transmission and Distribution Rules, which provide a thorough framework for grid planning, operation, and expansion, regulate the growth of Cyprus' electrical grid.
High, medium, and low-voltage networks are primarily managed and expanded by the Cyprus Transmission System Operator (TSO) and Distribution System Operator (DSO), while grid development plans, investment approvals, and tariff structures are supervised by the Cyprus Energy Regulatory Authority (CERA) to guarantee adherence to national and EU regulations.
The TSO and DSO must create and revise a grid development plan to handle the increasing demand for electricity, improve supply security, and incorporate renewable energy sources (RES). Smart grid technologies and digitisation are becoming increasingly important to improve system efficiency. The Grid Code and Distribution Code specify technical requirements, such as voltage levels, frequency stability, and connection standards.
With infrastructure advancements targeted at supporting renewable energy generation while preserving grid stability, the integration of RES is a top priority. Priority access is given to RES producers, and the TSO is required to evaluate the risks of congestion and suggest policies to encourage greater integration of renewable energy.
The TSO submits a ten-year network development plan every year to outline planned upgrades, interconnections, and capacity expansions. The plan is subject to CERA’s review and approval based on economic, environmental, and security-of-supply considerations. Regulated network tariffs are used to recoup the costs of grid expansion. Before obtaining connection permits, new power plants, RES systems, and large consumers must comply with grid connection regulations. In certain situations, developers may also be required to pay for the required grid upgrades.
Furthermore, decentralised energy production and consumption are made possible by the addition of provisions for Virtual Net Metering and Energy Communities in recent updates. The law requires stringent adherence to performance and stability standards in order to guarantee supply security and grid reliability. Grid operators must keep an eye on system conditions and put backup plans in place to avoid voltage instabilities, frequency deviations, and blackouts.
Breaking these rules has consequences. Overall, the Transmission and Distribution Rules and the regulatory framework set forth by Law 130(I)/2021 guarantee that Cyprus' electrical grid is continuously modernized, expanded, and adjusted to accommodate the integration of renewable energy, new technological developments, and rising demand while preserving system stability, affordability, and efficiency.
Procedure
Grid development is a part of the grid connection agreement. More specifically, grid connection agreement forms include all necessary expansion works to be carried out by the grid operator, if needed (section T1 from the Transmission Regulation). Plant operators bears all connection costs.
Tasks of the DSO/TSO
According to Directive 2009/72/EC, Directive 2009/73/EC, Directive 2009/119/EC, and 130(i)/2021 the task for DSO and TSO in Cyprus are,
- operation, maintenance and development of Cyprus’s network (DSO)
- Development of System distribution (DSO)
DSO - Distribution System Operator:
The DSO is responsible for the operation, maintenance, and development of the distribution system in a safe and efficient manner. The tasks and responsibilities of the DSO are as follows:
- Operate, maintain, and develop the distribution system in compliance with technical and safety standards
- Ensure the connection of all users to the distribution system
- Ensure non-discriminatory access to the distribution system for all users
- Develop and maintain an investment plan for the distribution system
- Provide accurate and transparent information to the NRA and the TSO on the operation and development of the distribution system
- Monitor and report on the quality of service provided to users
TSO - Transmission System Operator:
The TSO is responsible for the operation, maintenance, and development of the transmission system in a safe and efficient manner. The tasks and responsibilities of the TSO are as follows:
- Operate, maintain, and develop the transmission system in compliance with technical and safety standards
- Ensure non-discriminatory access to the transmission system for all users
- Ensure the security of the transmission system and its interconnections with other systems
- Ensure the adequacy and availability of the transmission system to meet demand
- Develop and maintain an investment plan for the transmission system
- Provide accurate and transparent information to the NRA and the DSO on the operation and development of the transmission system
Obligations and rights of plant operators
For EAC,
- performs maintenance and construction work in accordance with the ten-year transmission system development plan and the terms of the Transmission System Protocol, as well as design and development work as assigned to the Transmission System Owner by the Transmission System Protocol
- carry out any other work required under the ten-year transport system development plan and comply with any other requirement related thereto under this Law by showing the necessary care and attention to the protection of the environment
- informs the TSO and CERA, within the time period determined by CERA's decision, of the measures it intends to take for the implementation of the ten-year development program of the transmission system in accordance with the System Protocol Transportation
- ensures the long-term ability of the system to meet reasonable electricity distribution demand by commissioning
- avoids discrimination between users or categories of users of the system
- when allocating load to production facilities and demand response facilities, is obliged to give priority to production facilities that use renewable energy sources
Many of DSO’s obligations can be found in the L.130(I)/2021 article 35, 42 and 48
For TSO,
- obliged to construct and maintain an efficient, coordinated, safe, safe, reliable and economically viable distribution system, in accordance with the ten-year development program of the distribution system, showing due care for the care and protection of the environment.
Obligations and rights of Plant Operator and RES plant operators in the development to the Grid
The obligation that Plant operators and RES plant operators have in order to be allowed to operate in Cyprus is to get a license for building and operating (electricity production license (Chapter I Article 25 from L.130(I)/2021). Some important criteria are,
- Compliance with the the Grid connection regulation and technical requirements
- Ensure the plant operation in order not to compromise the grid stability and safety
- Follow Trasnimtion and Distribution rules
- Grid reinforcement costs if their connection impacts the stability or capacity of the system
- Compliance with the Electricity Market rules
- Health and safety hazards
- The Protection of the Environment
- Use of land and installation
- Reduction of CO2 emissions throughout the RES generation
- Follow the regulations regarding of Urban planning
The rights that Plant operators and RES plant operators have that operate in Cyprus,
- All plant operators, including RES, have the right to connect to the electricity grid under fair and non-discriminatory conditions
- RES plants have priority access
- right to participate in the Electricity Market
Role of the NRA
CERA approves and revises the process and charging policy of the Transmission 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.
As mentioned on the N130(I)2021 (Article 24) the role of NRA (CERA), in Cyprus is to,
- Regulation and monitor the electricity market of Cyprus
- Licensing for electricity operation
- Tariff and Market Regulation and monitoring
- Consumer protection in the energy market
- promoting RES project
- Approve the methodologies used by DSO and TSO