{The electrical} interconnection of Cyprus with the European system offers an outlet to RES producers, drastically limiting the mandatory cuts
The approaching liberalization of the electrical energy market inside 2025 – as assured by the related authorities officers – brings to the floor a difficulty that strongly considerations the developed European markets: the sustainability of investments in RES.
The estimates of the Cyprus Transmission System Operator (TSO) “present” RES cuts of the order of 28% on common for 2025, whereas already final April the cuts shot as much as 70%. The paradox is that in Greece, the place the penetration of RES is way increased than in Cyprus – it now reaches 60% within the nationwide vitality combine – the cuts vary in low single digit percentages.
The problem was highlighted with dramatic tones by the Cyprus Electrical Contractors Affiliation (SEHK) within the current debate of the Parliamentary Vitality Committee. In his word, the consultant of SEIK Tasos Parasiris emphasizes that this proportion is “impermissible” anymore for the sustainability of any funding in photovoltaic programs.
As he usually states, that the cuts in vitality from RES really began from 2021 and since then no severe political initiative was taken to take care of the problem, whereas the developments and correspondingly the licensing proceeded at a speedy tempo and with none restrict from the competent authorities.
It’s simple to see that with these ranges of cuts, funding in renewable vitality sources will turn into unsustainable when the Cypriot electrical energy market is liberalized. So long as the market stays “closed”, with standard models holding the “reins” of energy technology pushing the costs of renewable vitality to 3 instances the European common, the issue is swept below the carpet.
Quickly, nevertheless, Cyprus must align with its dedication to 42.5% of electrical energy technology from RES within the last combine, based on the revised “Match for 55” targets for local weather neutrality by 2050. Then, the costs of RES shall be pushed down considerably to converge with European ranges, and solar energy producers shall be confronted with an explosive cocktail – excessive cuts mixed with a lot decrease electrical energy costs.
{The electrical} interconnection of Cyprus with the European system offers a means out to RES producers, drastically limiting the mandatory cuts. And that's as a result of, based on the cost-benefit examine held by the Division of Vitality, Commerce and Business for the Nice Sea Interconnector, cuts is not going to exceed ranges of 5-8% by 2040.
Quite the opposite, with the event of batteries – which is the choice situation thought-about – the cuts is not going to fall under the degrees of 18-20%. The reason being that {the electrical} interconnection ensures bidirectional vitality flows between Cyprus and Europe, enabling the export of extra vitality from photovoltaics to neighboring European states.
Due to this fact, it turns into clear that solely {the electrical} interconnection ensures the sustainable growth of RES in Cyprus, as the extent of cuts doesn’t put the funding of personal producers in danger. It’s no coincidence that, with its current public intervention, the Federation of Employers and Industrialists of Cyprus supplies its undivided assist to {the electrical} interconnection mission, provided that its members embody essential RES traders.
In its detailed memorandum to the President of the Republic, Nikos Christodoulidis, OEB concludes that “we have now the chance to carry our vitality isolation, to enter the trail in the direction of balancing the price of electrical energy with the bottom charge in Europe, to turn into essential for our companions within the EU and to exhibit our regional position in observe”. He characteristically mentions that “interconnection can solely deliver advantages for our nation, companies and residents sooner or later. Let's not miss the chance.”
