Central energy storage system: Need for documentation and transparency
Recently, public opinion has been promoted to the picture that the central energy storage system, which is scheduled to be implemented by the Cyprus Transmission System Operator (DSMK), is a beneficial investment necessary to reduce green energy cuts and reduce power costs. It is even presented as an undeniable "opportunity" that cannot be questionable or objections.
However, as an electricity market link, we consider it our obligation to point out that the public dialogue on this project should be based on honesty, transparency and documented information.
Cost and funding
The project, according to public statements, is estimated to have a total cost of about € 60 million. Of these, half is expected to be covered through the EU's fair transition fund. The remaining amount, that is, about € 30 million, has not yet been clarified how it will be funded.
The reasonable conclusion is that it will be covered through charges that will be transferred to the final consumers, either through regulated bills or through more general charges.
This is a reasonable reflection, taking into account the fact that no cost -benefit study has been made public, justifying such an investment.
Operational operation and transparency
An essential question concerns the way the central storage system operates, which is not highlighted will not participate in the market:
Where will he supply the energy to charge? Who will cover the relevant costs? What criteria will govern discharge? How and to whom will the benefit or burden be distributed?
In a serious and reliable energy market, such questions do not remain unanswered. To date, however, no public and documented response has been given by the responsible manager. What is needed is transparency and answers to all open issues related to tens of millions.
The purpose of the derogation
The derogation received by the Republic of Cyprus, which allows the DSMK to have a central storage system, does not concern the commercial use of stored energy. The central storage system can only be used for network stability, such as a frequency balancing in cases of sudden changes.
Reduction of RES cuts can only occur indirectly if the central storage system reduces the need to maintain high conventional power in the system, and thus create "space" for more absorption of green energy.
As a result, the presentation of the Central Storage System of the DSMK as a "cut tool" or as a means of "cost reduction in the consumer" is a product of misinformation, makes incorrect impressions in public opinion and does not respond to the content and purpose of derogation.
Private storage projects and equal treatment
At the same time, dozens of private energy storage projects in Cyprus remain on waiting, despite the fact that they have received the necessary licensing. In many cases, the issuance of final connection terms is pending, a procedure supervised by the DSMK. That is, the same body that now implements the state storage project.
This situation raises questions about equal treatment, competition and the maintenance of transparent and unspeakable market access.
The coexistence of regulatory role and business activity within the same body (DSMK) creates a structural imbalance in the market. Without a clear separation of responsibilities and institutional controls, the market is in danger of evolving into an environment of limited options, where state intervention does not complement the private sector, but replaces it.
The Consumer Right to Information
The electricity market link recognizes the importance of energy storage in the context of energy transition. However, any project, particularly public, should be evaluated on a cost -benefit criteria and with a view to achieving the lowest end -user burden.
The consumer, who at the end of the day is financially burdened, has the right to know:
What is the final cost of the project? What percentage is covered by the EU And what of our accounts? By what criteria will the storage system work? Is there a published cost-benefit study? How is it ensured that the choice of DSMK does not limit more efficient and economical solutions that would benefit the end users? Transparency and documentation for a healthy electricity market
Energy policy cannot be based on communication narratives or slogans. It must be based on transparent processes, documented data and equal rules for all market players.
The Electricity Market Association remains committed to these principles and continues to propose solutions that ensure the proper functioning of the market, healthy competition and consumer protection.
