By Vakis Charalambous
- Head of the AKEL Energy Office
Cyprus does not have a problem because it has installed many renewable energy sources. It has a problem because it developed them without a comprehensive plan for the grid, storage, siting, and, most importantly, how the lower cost of green energy production will reach the consumer.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The development of large commercial solar farms proceeded without comprehensive land-use and energy planning. A telling example is the issue of state-owned land, regarding which the Audit Office documented cases where the principles of transparency and equal treatment were not upheld.
At the same time, there was a massive rollout of renewable energy without parallel development of storage capacity and the necessary grid flexibility. The storage requirement for large wind farms was abolished, and we are seeing the result today in the cuts to green energy.
There is also the eight-year “temporary” nature of the Transitional Regulation. It began in 2017 as a transitional phase and remained in effect until the launch of the competitive market. Within this framework, bilateral agreements were developed between private producers and suppliers, without any mechanism to ensure that the drastic reduction in the cost of photovoltaics would be passed on proportionally to the consumer. Ultimately, individual investors reaped excessive profits.
At the same time, the EAC faced serious regulatory constraints for years regarding the development of its own renewable energy sources, did not participate in the Transitional Arrangement, and even today, AHK Supply cannot enter into bilateral contracts with new commercial parks. The country’s largest supplier is thus deprived of a key tool for accessing cheaper green energy.
These choices were not made in a political vacuum. The fundamental distortions were shaped primarily during the decade of Anastasiades–DISY administration, as a result of political and regulatory choices that treated energy primarily as a field for profiteering rather than as a basic social good.
Another policy choice was the abandonment of competitive bidding for renewable energy projects, even though, when they were implemented, they secured significantly lower prices (the 2013 auction achieved prices up to 43% lower than the cost of conventional generation).
Instead of competitive bidding becoming a key tool for new renewable energy projects, this specific policy was abandoned, and we ended up operating within a model that largely perpetuates distortions without ensuring affordable electricity.
In the face of all these distortions and systemic flaws, the answer is not less renewable energy. It is more renewable energy, with a plan that prioritizes rooftops, public buildings, and energy communities. With sufficient and reliable storage, transparent procedures, binding milestones in permitting, and effective market oversight.
The green transition is truly meaningful when it is fair and when its benefits are reflected in citizens’ utility bills.
