Competitive Electricity Market of Cyprus
General Overview
The Competitive Electricity Market (CEM) of Cyprus is based on the European Net Pool model and covers all wholesale electricity trading and purchasing transactions. It consists of three main market layers, with a fourth planned for future implementation:
- Forward Market – for long-term transactions
- Day-Ahead Market – for next-day transactions
- Balancing Market – for maintaining real-time system balance
- Intra-Day Market – currently under development and expected to become operational after the launch of the CEM
The market design and operating rules are defined by Regulatory Decision 01/2015 of the Cyprus Energy Regulatory Authority (CERA), under which Version 2.0.0 of the Electricity Market Rules (EMR) was issued.
The supervision and management of electricity trading are the responsibility of the Transmission System Operator of Cyprus (TSOC), which is obligated to implement the Electricity Market Rules in full compliance.
Market Participants
The following categories of entities are eligible to participate in the Competitive Electricity Market:
• Conventional energy producers
• Renewable Energy Sources (RES) producers – either independently or through aggregation representation
• Electricity suppliers
Electricity Supply
To engage in electricity supply activities, the following are required:
• An Electricity Supply License issued by the Cyprus Energy Regulatory Authority (CERA), in accordance with Articles 26 and 27 of Law N.130(I)/2021
• An application for registration as a Contracting Party under the contractual framework of the Electricity Market Rules, submitted to the Transmission System Operator of Cyprus (TSOC)
