Regulatory body sets limit to price EAC can buy renewable energy

The Cyprus Energy Regulatory Authority (CERA) has put an end to the Electricity Authority of Cyprus practice of paying high prices to private companies for the purchase of energy produced from renewable sources.

CERA has announced its decision that such purchases from the EAC should be at the maximum price of 11 cents per KW hour, Philenews reported on Friday.

EAC was buying energy from these companies at 19 cents per KW-hour, which was the unit price for power production by oil. Even though the cost to the PV company was 5 or 6 cents per KW-hour only.

The new development means that, as of May 1, EAC will record serious savings per kilowatt-hour purchased. Thus, the consumer should have some benefit as well, in terms of electricity prices from a lower rate.

Over the past two years or so consumers have been heavily overcharged for green energy, due to the skyrocketing oil price, to which the purchase price of kilowatt-hours from photovoltaic and wind power plants was linked to EAC.

At the same time, the report also said that CERA’s decision does not reduce the revenues of producers from RES systems included in state support schemes.

Producers will continue to be paid each kilowatt-hour at the price set through the support schemes, that is, on the basis of the agreed tariff. Various tariffs are in force – all above 11 cents.