Rights and obligations of consumers and prosumers
The licensing of actions related to electricity is regulated by the Law on the Regulation of the Electricity Market, the Regulations on the Regulation of the Electricity Market (Licensing) and the Regulatory Decision 02/2021 entitled “Regulatory Framework for the Granting of the General License (Regulatory Administrative Act No 523/2021).
According to Article 26 of the Law on the Regulation of the Electricity Market, it is forbidden for any person to carry out the following activities without obtaining a license from CERA:
- construction of a power plant or electricity generation
- supply of electricity to final customers
- supply of electricity to wholesale customers
- discharging any of the functions of the Transmission System Operator of Cyprus in accordance with the provisions of Article 60
- carrying out any of the functions of the Distribution System Operator in accordance with the provisions of Article 47 or of the Closed Distribution System Operator in accordance with the provisions of Article 56
- carrying out any of the functions of the Transmission System Owner in accordance with the provisions of Article 36
- carrying out any of the functions of the Distribution System Owner in accordance with the provisions of Articles 41 and 42
- performing any of the duties of the Market Operator
- performing any of the duties of the Balance Responsible Party
- performing any of the functions of the Aggregator or the Independent Aggregator
- performing any of the duties of the Electricity Interconnector Owner
- performing any of the duties of the Electricity Interconnector Operator
- installing and/or operating an electricity storage facility, with the exception of electricity storage facilities operated exclusively for own use
- constructing a direct line in accordance with the provisions of Article 100.
- According to Article 116 of the Law, customers have the right to right to buy electricity from a supplier of their choice and the right to enter more than one electricity supply contract at the same time, provided that the required connection and metering points have been determined
The obligations for Customers and Prosumers stated in the Law are:
- Payment of Electricity Bills: Customers and prosumers are generally required to pay their electricity bills.
- Compliance with Technical and Safety Requirements: Customers and prosumers must adhere to technical and safety requirements
- Metering and Reporting: Customers and prosumers are typically responsible for allowing access to their premises for meter readings.
- Compliance with Grid Connection Rules: Customers and prosumers must comply with the rules and procedures for connecting their installations to the grid
- Contractual Obligations: Customers and prosumers are bound by the terms and conditions of their electricity supply contracts
- Compliance with Energy Efficiency Measures
According to subsection (4) of Article 27, CERA may grant an exemption from the obligation to hold a license for the following activities:
- Generation of electricity for own use from systems with a capacity of more than 30kW up to 1MW
- Generation of electricity from renewable energy power plants with a capacity of more than 50kW up to 8MW.
Rights and obligations of plant operators
According to subsection (1) of Article 27, CERA grants a general license in respect of the following activities:
- Generation of electricity from power plants that are not connected to the transmission or distribution system
- Generation of electricity from power plants with a maximum capacity of up to 20kW
- Generation of electricity for own use from systems with a capacity of up to 30kW
- Generation of electricity from renewable energy power plants with a capacity of up to 50kW
- Generation of electricity from small-scale high-efficiency cogeneration plants in accordance with the provisions of the Laws on the Promotion of Energy Efficiency in Heating and Cooling and Heat and Power Cogeneration; and
- any other activity that at the discretion of the Minister or CERA, after consultation between them, it is appropriate to establish such procedures.
The obligations of a Plant operator and for RES Plant operator are as such:
- Compliance with the Licensing regulation: obtain necessary licensing and comply with the terms and conditions
- Grid connection and Operating compliance: Follow the Technical requirements from the Transmission and Distribution rules and ensure grid stability and security requirements, including voltage and frequency control
- Allow grid operators (Transmission System Operator - TSO and Distribution System Operator - DSO) to monitor and inspect plant operations
- Meet grid integration standards for renewable energy, including participation in balancing markets where applicable and allow TSO and DSO to monitor and inspect the plant operation
- Follow environmental regulations concerning emissions, waste management, and sustainability standards.
- Implement health and safety measures for plant operation and personnel safety.
- Report any incidents or malfunctions that may affect system stability or environmental standards.
- Pay all applicable fees and charges, including network tariffs and market participation costs.
- Compliance with the Electricity Market rules
According to Regulatory Decision 01/2023 entitled “Regulatory Framework for Granting a General License (Amendment)”, Regulatory Administrative Act No 22/2023, the production of electricity from photovoltaic systems on the shell of an existing building with a capacity of above 50kW, was included in the categories for which a General License is granted.
Priority for RES and curtailment
In Cyprus, renewable energy sources are given priority according to the Regulation of the Electricity Market (130(I)/2021). The TSO and the DSO, when allocating load to the designated facilities, shall give priority to power generation facilities, to the extent permitted by the secure operation of the national electricity system, provided that the power generation facilities use renewable energy sources or high-efficiency cogeneration. Nevertheless, for reasons of grid safety and reliability, the grid operator may unlimitedly reduce RES imports at any time.