Cyprus has 340 days of sunshine, the highest potential for solar power of the 27 members of the EU. The island is already one of the highest users in the world (per capita) of solar energy heaters in houses at 90% and 50% in hotels.
Cyprus’ high dependency on fossil fuels for energy makes it crucial to develop both its natural gas and RES such as as Photovoltaic Parks, wind farms, biomass, biogas and Geothermal energy. The potential of RES is huge in terms of clean energy and low electricity prices.
By the end of 2021, Cyprus expects to have full electricity market liberalisation. The Cyprus Energy Electricity Authority (CERA) has worked towards the opening up of the energy market and granting end consumers the right to choose their own supplier. CERA’s proposition is a model whereby the Electricity Authority of Cyprus (EAC), the state power company would enter into bilateral agreement with suppliers for the sale of energy at regulated prices thus separating production and supply operations. CERA foresees establishing an electricity exchange where suppliers’ bids for quantities of electricity will be updated. The exchange will match supply and demand and fix the price for a contract. This will be operated by the Transmission System Operator (TSO).
Surveys show that RES will potentially create more than 10.000 jobs in Cyprus in the next decade. RES could provide up to 40% of Cyprus’ total electricity supply by 2030 with solar PV being the dominant source.
Our law firm offers legal advice on the full range of issues in Renewable Energy Sources Law, including licensing, due diligence, compliance and regulatory issues, competition, mergers and acquisitions, financing, commercial and trading contracts, EPC and O&M contracts, commercial and corporate advice, support on infrastructure projects including EPC and energy taxation issues. Contact us for an appointment.