Net-Metering I (for households, public administration buildings and commercial industrial units)

Updated: 04.01.2019

Author: Georgios Maroulis

Cyprus has introduced since 2014 a net-metering scheme. The net-metering scheme in Cyprus applies to natural and legal persons producing electricity from PV plants. Since 2017 Biomass/ Biogas plants are also eligible. As of 2018, the scheme continues only for the category (industrial/ commercial units and public administration buildings).

Eligible technologies

PV and Biomass/ Biogas installations are eligible

Solar energy

For households: PV (aggregate installed capacity 8.8 MW) (ch. 3.par. 5 4 “Support Scheme for PV and Biomass/ Biogas 2017”).

For non-domestic consumers: PV (aggregate installed capacity 13 MW). In this category, 2 MW are reserved for agricultural companies and fisheries and 1 MW to public educational institutions such as public schools and kindergartens (ch. 3 par. 7 4 “Support Scheme for PV and Biomass/ Biogas 2017”)

For industrial/ commercial units and public administration buildings: autonomous PV between 10 kW-10,000 kW (aggregate installed capacity 40 MW) (ch. 4 par.4 “Support Scheme for PV and Biomass/ Biogas 2017”).

For self-consumption: PV plants not connected to the grid with a capacity until 20 kW (ch.5 par.2 “Support Scheme for PV and Biomass/ Biogas 2017”).

Biogas

For industrial/ commercial units and public administration buildings: autonomous biogas plants between 10 kW-10,000 kW (aggregate installed capacity 40 MW) (ch. 4 par.4 “Support Scheme for PV and Biomass/ Biogas 2017”).

Biomass

For industrial/ commercial units and public administration buildings: autonomous biomass plants between 10 kW-10,000 kW (aggregate installed capacity 40 MW) (ch. 4 par.4 “Support Scheme for PV and Biomass/ Biogas 2017”).

Amount

The electricity offsetting will be carried out once every two months or each month for each calendar year by EAC or by any other electricity supplier to which the consumer has contracted. Any surplus will be transferred in the next two months or next month while any deficits will be invoiced. The final account (measurement of February- March) of the calendar year will be the final settlement. Electricity surplus cannot be carried over from one calendar year to the next (ch. 3 par. 3 “Support Scheme for PV and Biomass/ Biogas 2017”). In addition, electricity produced by PV and Biomass/ Biogas installations for self-consumption purposes (industrial/ commercial units) shall not be fed into the grid (ch .4. par. 3 “Support Scheme for PV and Biomass/ Biogas 2017”).

Addressees

Entitled party: Entitled are natural persons and public administration entities (ch. 3.6 and ch. 3.7 “Support Scheme for PV and Biomass/ Biogas 2017”) as well as legal entities (fisheries and agricultural companies are included) (ch. 4 par.1 “Support Scheme for PV and Biomass/ Biogas 2017”).

Obligated party: The obligated party is the state, represented by the Electricity Authority of Cyprus (EAC) (ch. 3 par.9 and ch. 4 par.6 “Support Scheme for PV and Biomass/ Biogas 2017”).

Procedure

Process flow

For households and non-domestic consumers

  • Application: Interested parties shall submit their applications with the necessary supporting documents to EAC, as the responsible DSO (ch.3.par.9 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Proposal assessment: Applications are assessed by EAC in 7 days (ch.3.par.9 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Project Approval: A Net-metering contract is signed between EAC-DSO and the applicant, who also pays a €250 fee (administrative costs). The contract has a duration of fifteen (15) and ten (10) years for households and non-domestic consumers respectively (ch.3.par.9 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Project realisation: The installation of the PV should be completed in 3 months and should be connected with the grid. EAC- DSO is responsible for controlling the PV plant within 25 days (ch.3.par.9 “Support Scheme for PV and Biomass/ Biogas 2017”)

For industrial/ commercial units (autonomous electricity production)

  • Application: Interested parties submit their application along with the necessary supporting documents to the Cyprus Regulatory Authority on Energy (CERA) (ch. 4. par. 5 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Exemption from construction licence & project realization: CERA issues and exemption from construction license (ch. 4 par. 5 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Final control and connection to the grid: The DSO is responsible for controlling the connection of the PV plant to the distribution grid within thirty (30) days. Then the plant operator should submit to CERA an application for the exemption from the issue of a production license and after that a contract will be signed between the plant operator and EAC (ch. 4 par..6 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Storage: Plant operators under this category are eligible for installing storage facilities. For that reason, interested applicants should submit with their application all necessary information provided by the manufacturer i.e. the safety regulations as well as the contribution that the installation of storage facilities has in the whole system (ch. 4 par..5 “Support Scheme for PV and Biomass/ Biogas 2017”).

Competent authority

The Cyprus Energy Regulatory Authority (CERA) is responsible for the revision of all applications (ch.3 par.10 and ch.4 par.6 “Support Scheme for PV and Biomass/ Biogas 2017”).

Flexibility mechanism

The statistical transfer of a certain amount of RES electricity is possible by agreement with the Member States. The term of such an agreement may exceed one year. Every year, within a three-month time frame, a report will be published on the total amount of electricity produced from RES in the previous year. This report will facilitate the allocation procedure (art. 15 par. 2 LPRES). In any case, the European Commission must be informed of the pending termination of an agreement three months in advance (art. 15 par.7 LPRES). RES electricity produced should be calculated “statistically transferred” in the national target of the other Member State, but such works have a duration until 2020 (art. 15 par. 5 LPRES).

International applicability

Flexibility mechanism

The statistical transfer of a certain amount of RES electricity is possible by agreement with the Member States. The term of such an agreement may exceed one year. Every year, within a three-month time frame, a report will be published on the total amount of electricity produced from RES in the previous year. This report will facilitate the allocation procedure (art.15 Par. 2 LPRES). In any case, the European Commission must be informed of the pending termination of an agreement three months in advance (art. 15 par.7 LPRES). RES electricity produced should be calculated “statistically transferred” in the national target of the other member state, but such works have a duration until 2020 (art.15 par.5 LPRES).

Cyprus

Further information

  • Ρυθμιστική Αρχή Ενέργειας Κύπρου (ΡΑΕΚ) – Cyprus Energy Regulatory Authority (CERA)
  • +357 22666363
  • CERA website
  • info(at)cera.org.cy

Basic information on legal sources