The Electricity Market
To harmonise with the relevant European Union Directive and to comply with the Cyprus legislation since 1.5.2004 the 35% of the electrical energy market was open to competition and all consumers that consume 350.000kWh or more for the period of the last 12 months are free to choose their electrical energy supplier and they constitute the category of ‘Eligible Consumers’. The above limit is set by the Minister of Commerce, Industry and Tourism in accordance with the article 44 of the Electricity Market Regulation Law, dated 24.4.2004. Please, note that this category consists of major consumers as for example cement works, large hotels and industries etc.
The rest 65% of the market are the ‘Non-Eligible Consumers’ who are the household and non-household customers and who consume less than the above limit and consequently they shall continue to obtain their electrical energy from Electricity Authority of Cyprus.
So far a number of companies showed interest, local or foreign based, to invest in the energy sector. It is expected that the Renewable Energy Sources (RES), mainly wind energy shall have a major share in the production of electrical energy by independent producers. The Cyprus Government accepted the European Union Directive that Renewable Energy Sources shall reach the 6% of the total energy production until 2010. The investments for electrical energy generation using Renewable Energy Sources are subsidised by the Energy Department of the Ministry of Commerce, Industry and Tourism.
The applications by Independent Producers, are submitted to the Cyprus Energy Regulatory Authority (CERA), which is the responsible Office for licensing new Power Plants. The licensed Independent Producers to date for the construction and operation of Power Plants, are shown in Table 1. The EAC and Vassilikos Cement Works Public Company Ltd are the only electrical energy Producers in Cyprus.
Table 1: Approved Applications of Independent Power Producers
Company | Power (MW) | Technology |
|---|---|---|
Vouros Power Industries Ltd | 49,90 | Internal Combustion Engines (Heavy Fuel Oil) |
UNENES Ltd.
| 220 | Combined Cycle Gas Turbines (Natural Gas & Diesel) |
Vassilikos Cement Works Public Company Ltd | 6 | Internal Combustion Engines - Self Supply (Heavy Fuel Oil) |
Ketonis Developments Ltd. | 34,50 | Wind Farm Power Station (WFPS) |
Ketonis Developments Ltd. | 12 | Wind Farm Power Station (WFPS) |
Aerotricity Ltd | 9,6 | Wind Farm Power Station (WFPS) |
Aeoliki Akti Ltd Wind Farm Power Station (WFPS) | 10 | Wind Farm Power Station (WFPS) |
The Rules governing market operation are approved by the Minister of Commerce, Industry and Tourism.