Net-Metering II (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, while since 2018 a net-billing scheme is also applied.
Eligible technologies
PV and Biomass/ Biogas installations are eligible
| Solar energy | For households: PV (aggregate installed capacity 5MW) (ch. 4.par. 4 SSRES 2018). For non-domestic consumers: PV (aggregate installed capacity 15MW). In this category, additional 3 MW are reserved for agricultural companies and fisheries and additional 4 MW to public educational institutions such as public schools and kindergartens (ch. 4 par. 4 SSRES 2018) For industrial/ commercial units and public administration buildings (net-billing): autonomous PV between 10kW-10,000kW (aggregate installed capacity 40MW) (ch. 5 par.9 SSRES 2018). For self-consumption: PV plants not connected to the grid with a capacity until 20kW (ch.6 par.1 SSRES 2018). |
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| Biogas | For industrial/ commercial units and public administration buildings (net- billing): autonomous biogas plants between 10kW-10,000kW (aggregate installed capacity 40MW) (ch. 5 par.9 “Support Scheme for PV and Biomass/ Biogas 2017”). For self-consumption: Biogas plants not connected to the grid with a capacity until 20kW (ch.6 par.1 SSRES 2018). |
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| Biomass | For industrial/ commercial units and public administration buildings (net-billing): autonomous biomass plants between 10kW-10,000kW (aggregate installed capacity 40MW) (ch.5 par.9 “Support Scheme for PV and Biomass/ Biogas 2017”). For self-consumption: Biomass plants not connected to the grid with a capacity until 20kW (ch.6 par.1 SSRES 2018). |
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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.4 par.3 SSRES 2018).
With regard to the net-billing scheme for industrial/ commercial units and public administration buildings, a bi-directional meter will be installed by the Cyprus DSO to record the imported electricity and the energy to be supplied to the electrical system. If this is not technically feasible, two meters can be installed to record the above-mentioned data. If the cost of the exported electricity does not exceed the cost of the imported electricity, then the plant operator should pay the difference resulting from offsetting the cost of exported and imported electricity for the relevant billing period. If the cost of the exported electricity exceeds the cost of imported electricity, the surplus amount will be credited for the next billing period. The final account (measurement of November) of the calendar year will be the final settlement. Electricity surplus cannot be carried over from one calendar year to the next (ch.5 par.5 SSRES 2018).
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.6 par.1 SSRES 2018”).
Addressees
Entitled party: Entitled are natural persons and public administration entities (ch. 4 par.1 SSRES 2018) as well as legal entities (fisheries and agricultural companies are included) (ch. 4 par.1 SSRES 2018). In relation to the “net-billing” scheme, industrial/ commercial units and public administration buildings connected to the medium voltage grid are entitled (ch.5 par.1 SSRES 2018)
Obligated party: The obligated party is the state, represented by the Electricity Authority of Cyprus (EAC) (ch.4 par7, ch.5 par.7 and ch.6 par.1 SSRES 2018).
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. Principally, the applicant pays a €250 fee (administrative costs). The fee is reduced to €150, in case of a modification of an installation or a new residence. In case the application is rejected the total sum of the fee minus €50 are returned to the applicant (ch.4 par.7 SSRES 2018).
- Proposal assessment: Applications are assessed by EAC in 7 days (ch.4 par.7 SSRES 2018).
- Project Approval: A net-metering contract is signed between EAC-DSO and the applicant. The contract has a duration of fifteen (15) and ten (10) years for households and non-domestic consumers respectively (ch.4 par.7 SSRES 2018).
- Project realisation: The installation of the PV should be completed in 3 months and should be connected with the grid. For new residences that will be connected to the grid the timeframe is set at 6 months and 12 months if grid expansion works are needed. For non-domestic consumers that are expected to receive support by the Rural Development Plan (MARDP) 2014-2020, they should realise their PV installation within 3 months after the support is granted. EAC- DSO is responsible for controlling the PV plant within 25 days (ch.4 par.8 SSRES 2018).
For industrial/ commercial units and public administration buildings (net-billing) - Application: Interested parties submit their application along with the necessary supporting documents to the Cyprus DSO (ch.5 par.7 SSRES 2018).
- Application for/ exemption from operation licence: If the Cyprus DSO approves after inspecting the construction of the PV installation, interested parties are obliged to apply to CERA for an operation license or an exemption from it (ch.5 par.7 SSRES 2018).
- Project Approval: A power purchase agreement is signed between EAC-DSO and the applicant. The contract has a duration of ten (10) years (ch.5 par.5 SSRES 2018).
- Project realisation: The installation of the PV should be completed in 12 months after CERA’s approval. For applicants that are expected to receive support by the Rural Development Plan (MARDP) 2014-2020, they should realise their PV installation within 12 months after the support is granted (ch.5 par.8 SSRES 2018).
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.6 par.5 SSRES 2018).
- Application for construction licence & project realization: Interested parties are obliged to apply to CERA for all necessary licenses (ch.6 par.5 SSRES 2018).
- Final control and connection to the grid: if all necessary licenses are issued the plant is connected to the grid (ch.6 par.5 SSRES 2018).
- 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.6 par.3 SSRES 2018).
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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”). |
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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). |
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Cyprus
