The Cyprus Electricity Authority (EAC) is committed to entering into agreements with independent electricity producers (PPIs) to purchase electricity produced at a fixed rate per kilowatt-hour. The Renewable Energy Fund pays a premium in addition to the market price, thus encouraging the production of electricity from UC sources. Gasum Oy and ABO Wind Oy have reached a long-term agreement on wind farm production. As part of the 10-year power purchase agreement (AAE), Gasum will begin selling renewable wind energy produced in Northeast Robothnia to its customers from 2023. The agreement will enable partners Gasum and ABO Wind to increase the availability of Finnish renewable energy while building more wind energy in Finland. Local wind energy will increase Finland`s self-sufficiency in electricity generation. In practice, the EAC is the only PPI client. Therefore, the PPI authorizes the ABC, through the contractual agreement, to issue on its behalf and for its own invoices for the entire duration of the contract. THE PIP does not issue VAT invoices and accepts all invoices issued by eAC for transactions directly related to the agreement. The integration of the FiT mechanism into the agreement provides a protected revenue stream and a reduction in regulatory risks through long-term contractual security. However, there are risks, as the contractual provisions allow the contract to be renewed in the event of a network disruption that is not subject to ABC control, for example. B in case of emergency under Section 70 of the market legislation.
When an application is made by a company related to co-electric current, the transmission system manager proposes to enter into an agreement with that company. The same is true when an application is made to the transportation system manager. CERA will then decide that another type of project funding is public grants/subsidies, which can bear up to 55% of the total cost of the project, and their approval is subject to the expertise and expertise of the Fund`s management committee. The availability of the subsidy and the rate depend mainly on the nature of the UC source, the expected environmental benefits and the degree of energy efficiency achieved. In accordance with p. 88 of the Act, such agreements may be required by licensees to ensure that they provide, in a calendar year, a certain amount of electricity from power plants using renewable energy sources as their primary source of fuel. Electricity – Electricity companies apply to the transmission system manager for the connection and use of the transmission system. The transportation system manager proposes to enter into an agreement with the applicant in accordance with Section 83 of the market legislation. The same applies when an application is made to the owner of the distribution system. At the request of the commitment, CERA defines, among other things, the conditions for connection to the systems and the modalities for determining the share of counterparties` costs. Integrated power generation companies maintain separate accounts for their electricity generation, transmission and distribution processes and, where appropriate, consolidated accounts for all other non-electricity-related activities, as if these activities were carried out by separate entities.
Under the Renewable Energy Act 2003, an additional 0.0055 euro/kwh (or equivalent) is calculated for each electricity consumer supplied by an approved supplier, regardless of the supplier`s tariffs/charges, calculated on the basis of the corresponding energy bill issued by a supplier.