Cyprus faces the imminent threat of losing EU funds if smart meters are not installed on time. Failure to meet the deadlines of 15,000 units by September this year and 400,000 units with 250,000 installed by June 2026 could jeopardize the modernization of the country’s energy infrastructure and hinder the integration of renewable energy sources.
What is the risk for Cyprus if smart meters are not installed in time?
Cyprus risks losing European Union funds if it fails to finalize the smart meter contract and misses the installation deadlines. Smart meters are crucial for modernizing Cyprus’s energy infrastructure, enhancing efficiency, and supporting renewable energy integration. The deadlines are 15,000 units by September current year, and all 400,000 received with 250,000 installed by June 2026.
The Pressing Deadline for Smart Meter Installation
Cyprus stands on the brink of forfeiting valuable European Union funds if a swift resolution is not found for the procurement and installation of smart meters. Giorgos Petrou, who helms the Electricity Authority of Cyprus (EAC), addressed this pressing concern while speaking before parliament about the organization’s budget slated for 2024.
Amid rigorous discussions, Petrou highlighted the EAC’s recent decision to award the smart meter contract to the Cyprus Telecommunications Authority (CyTA). This decision, however, has sparked controversy and is now under scrutiny from the Tenders Review Authority after an appeal by an unsuccessful bidder. The crux of the issue lies in the risk of losing funds allocated under the Recovery and Resilience Facility if the contract is not finalized by the end of March.
The Contested Contract and Installation Targets
The contract’s terms stipulate the delivery of 50,000 smart meters and the installation of 15,000 units by September of the current year. Additionally, all 400,000 smart meters must be received and 250,000 installed by June 2026 to meet the conditions set by the Recovery and Resilience Facility. CyTA secured the contract with a bid of €39.9 million, outbidding New Cytech Business Solution at €37.6 million and Logicom Solutions Ltd at €33.6 million, the latter being the company contesting the decision.
The urgency of the situation cannot be understated as the smart meters are a pivotal part of modernizing Cyprus’s energy infrastructure. These devices are critical for enhancing energy efficiency, providing real-time information to consumers, and supporting the integration of renewable energy sources.
EAC’s Budget and Energy Concerns
During the parliamentary review, Petrou also requested a brief extension for the EAC to deliberate on whether to retract their previous proposal for a 6 percent increase in electricity bills. Meanwhile, the energy regulator awaits this decision, holding the power to make the final call on the proposed rate hike.
The broader context of the EAC’s budget reveals considerable expenditures, estimated at €2.395 billion against revenues of €2.103 billion. Within these figures lies an allocation of €250 million for unforeseen fuel expenses and electricity purchases. Petrou’s address also included insights into the EAC’s environmental impact, as the organization incurred fees amounting to €256 million for greenhouse gas allowances last year.
Advancing Cyprus’s Energy Future
Looking ahead, the EAC is planning to upgrade the Dhekelia power plant by adding two internal combustion engines, with a combined cost nearing €80 million. If storage batteries were to be included, the investment would surge to approximately €110 million. This initiative is part of a larger strategy to reduce greenhouse gas emissions by transitioning to natural gas, a more environmentally friendly alternative.
Petrou pointed out that the new turbine at the Vasiliko power station is being configured to accommodate natural gas, with potential adaptability for hydrogen use in the future. It is clear that the EAC is not only wrestling with immediate financial and legal battles but is also firmly focused on laying the groundwork for a sustainable energy landscape in Cyprus.
What is the risk for Cyprus if smart meters are not installed in time?
Cyprus risks losing European Union funds if it fails to finalize the smart meter contract and misses the installation deadlines. Smart meters are crucial for modernizing Cyprus’s energy infrastructure, enhancing efficiency, and supporting renewable energy integration. The deadlines are 15,000 units by September current year, and all 400,000 received with 250,000 installed by June 2026.
What are the installation targets for smart meters in Cyprus?
The contract stipulates the delivery of 50,000 smart meters and the installation of 15,000 units by September of the current year. By June 2026, all 400,000 smart meters must be received, with 250,000 installed, to meet the conditions set by the Recovery and Resilience Facility.
What is the current status of the smart meter contract in Cyprus?
The smart meter contract has been awarded to the Cyprus Telecommunications Authority (CyTA) for €39.9 million, outbidding New Cytech Business Solution and Logicom Solutions Ltd. However, the contract is under scrutiny by the Tenders Review Authority following an appeal by an unsuccessful bidder.
What other initiatives is the Electricity Authority of Cyprus (EAC) undertaking for energy sustainability?
The EAC is planning to upgrade the Dhekelia power plant by adding internal combustion engines at a cost of €80 million, with potential storage batteries increasing the investment to €110 million. Additionally, the Vasiliko power station is being configured to use natural gas, with future adaptability for hydrogen use. These initiatives aim to reduce greenhouse gas emissions and create a sustainable energy landscape in Cyprus.
