The Cyprus Association of Energy Source Companies (SEPAAK) has expressed serious concerns regarding the recently announced renewable energy plans by the government. According to SEPAAK, the implementation of some of these plans is difficult or even impossible due to weaknesses in the country's electrical system.

SEPAAK's concerns focus on decisions related to virtual net billing. Detailed data on connected systems and applications show that while there are about 400 connected systems, there are over 1000 applications. The association highlights that the current conditions are not conducive to implementation, creating false impressions and expectations among potential beneficiaries when there is increased interest from businesses and households in installing renewable energy systems. SEPAAK urges responsible authorities to recognise their significant responsibility for providing accurate information and guidance and to issue plans that primarily serve the needs of citizens and businesses, while also being realistic and fully implementable.

SEPAAK’s reference concerns the decision of the Council of Ministers for the amended Support Plan for Electricity Production from Renewable Energy Sources for Own Consumption, which came into effect on April 2, 2024. The main concern is the feasibility of implementing categories D and E of the Plan, which involve net billing.

Category D includes investments in photovoltaic systems connected to the grid through virtual net metering, while Category E involves investments in photovoltaic systems connected through virtual net billing.

The recent government decision allows businesses to combine net billing and virtual net billing. As a result, businesses without sufficient roof space can install a combination of a local renewable energy system and one or more virtual systems. The total production of these renewable energy systems will be offset against their consumption bill to cover a significant portion of their energy needs.

This combination option was among the requests from hoteliers seeking ways to reduce electricity costs by utilising land outside their hotel units.

Data shows that over 396 connected systems are using virtual net metering and 3 using virtual net billing, with over 900 applications pending for the former and over 100 for the latter.

Regarding residential photovoltaic systems, by December 2023, around 1 in 10 households in Cyprus, or nearly 52,000 homes, had installed photovoltaic systems on their roofs.