What is the story about?
What's Happening?
The Cyprus Ministry of Energy, Commerce and Industry has announced the termination of the country's net metering and net billing schemes effective December 31, 2025. These programs have been instrumental in promoting rooftop solar adoption, contributing significantly to Cyprus's installed photovoltaic capacity. In 2024 alone, Cyprus added 159 MW of new solar capacity, with 100 MW from self-consumption systems. The new self-consumption framework, designed by the Cyprus Energy Regulatory Authority (CERA), will commence on January 1, 2026. Under this framework, consumers can choose from three options: signing a bilateral agreement with an energy retailer, joining an aggregator to sell surplus generation, or opting not to export excess power to the grid. The reform coincides with the launch of a fully liberalized electricity market in Cyprus, ending the state utility EAC's exclusive role in net metering and billing.
Why It's Important?
The shift to a self-consumption framework marks a significant change in Cyprus's approach to solar energy, potentially impacting the solar industry and consumers. The new system aims to provide more flexibility and options for consumers, which could lead to increased adoption of solar energy. However, the transition poses challenges, particularly in integrating aggregators with self-consumption schemes due to Cyprus's small market size and logistical complexities. The reform is seen as a necessary step to reduce electricity costs and enhance energy self-sufficiency, but it underscores the need for complementary energy storage solutions to bolster the resilience of Cyprus's power system.
What's Next?
As Cyprus transitions to the new self-consumption framework, stakeholders such as solar installers and consumers will need to adapt to the changes. The government continues to support solar adoption through the 'Photovoltaics for All' subsidy program, which provides loans for residential PV systems. The success of the new framework will depend on the ability of consumers and aggregators to navigate the complexities of the market. Energy expert Dr. Andreas Procopiou emphasizes the urgent need for energy storage solutions to complement the self-consumption measures and strengthen the power system's resilience.
Beyond the Headlines
The reform highlights broader challenges in Cyprus's energy sector, including the lack of battery storage and interconnections with other grids. These factors limit the country's ability to fully capitalize on renewable energy potential. The new framework aims to address some of these issues by promoting self-sufficiency, but the long-term success will require further investment in energy storage technologies and infrastructure development.
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