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 by December 31, 2025. These schemes, which have been instrumental in promoting rooftop solar adoption, will be replaced by a new self-consumption framework starting January 1, 2026. The Cyprus Energy Regulatory Authority (CERA) has outlined three options for self-consumers: 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. This change follows the liberalization of Cyprus's electricity market, which ended the state utility EAC's exclusive role in net metering and billing. The ongoing 'Photovoltaics for All' subsidy program will continue, providing loans for residential PV systems.
Why It's Important?
The shift to a self-consumption regime is significant for Cyprus's energy landscape, as it aims to enhance energy independence and reduce electricity costs for consumers. The new framework is expected to provide more flexibility and options for solar energy users, potentially increasing the adoption of renewable energy sources. However, the transition poses challenges, particularly due to Cyprus's lack of battery storage and interconnections with other grids. The success of this initiative will depend on the integration of energy storage solutions to ensure system resilience and consumer self-sufficiency. The reform is crucial for Cyprus's efforts to meet its sustainability goals and reduce reliance on diesel generation.
What's Next?
As Cyprus transitions to the new self-consumption regime, stakeholders such as solar installers and energy retailers will need to adapt to the new market dynamics. The government may need to address the challenges of integrating aggregators into the self-consumption framework, given the complexity of managing small units in a limited market. Additionally, the development of energy storage solutions will be critical to support the new regime and enhance the resilience of Cyprus's power system. The ongoing subsidy program will continue to play a role in promoting solar adoption, but further measures may be needed to ensure the success of the self-consumption initiative.
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