A new chapter opened in Cyprus’ electricity market on 1 October with the launch of the Competitive Electricity Market, marking the first major step towards establishing genuine competition in the energy sector.
The Electricity Market Association (EMA) highlighted the importance of the development, stressing that consumers now have the right to choose the supplier that best meets their needs.
The new market is expected to eliminate distortions of the transitional period, promoting innovation, transparency and service upgrades. Independent suppliers will be able to design their own energy mix, combining both conventional production and renewable energy sources. This will allow for more flexible tariffs – with lower rates during high renewable production hours and higher ones in the evening – encouraging green energy use and reducing overall electricity costs.
In its first phase, 17 participants are involved: two producers, ten suppliers, nine renewable energy aggregators and three renewable producers. The market operates on three levels – forward, day-ahead and real-time balancing – giving suppliers the tools to manage costs effectively and offer consumers more competitive options.
However, the EMA stressed that opening the market alone is not enough to reduce electricity costs. A smooth and successful transition requires institutional stability, transparency and adaptation time, along with key reforms: the arrival of natural gas, network upgrades and the development of energy storage projects.
Only once these changes are completed, the EMA added, will full competition be ensured and the market’s real impact on reducing electricity prices properly assessed – a long-standing demand of both the state and private energy stakeholders.
Also read: Cyprus electricity market opens: how you can choose providers
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