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Tuesday, April 30, 2024

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Delays in energy infrastructure projects

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The Ten-year Programme for the Development of the Electricity Transmission System (2024-33) (TPDETS) did not escape the rule of delays in its implementation, like almost all developmental projects in the energy sector in Cyprus.

Around the same time that the Parliamentary Energy Committee was discussing delays in licensing, construction, and connection of electricity storage systems yesterday, the Cyprus Energy Regulatory Authority (CERA) published its decision to approve the revised ten-year programme for the expansion of the transmission system.

However, through its decision, CERA highlighted that “delays are observed in the implementation schedules of the proposed Electricity Transmission System Development Plan (2024-2033)”. Moreover, these are rolling, meaning recurrent, delays.

Additionally, the regulatory authority pointed out that “although new projects are included in the proposed Electricity Transmission System Development Plan (2024-2033), no techno-economic feasibility analysis has been conducted, as according to the letter from the Transmission System Operator dated April 3, 2024, its staffing is expected to be completed in order to provide justification within the plan regarding the benefits and necessity of their construction”.

The understaffing issues that prevent it from timely implementing the projects included in the plan for expanding the electricity transmission system were emphasised by the Transmission System Operator in his comments on related observations from interested investors in photovoltaic electricity production during the preceding public consultation concerning the revised ten-year programme.

In some of his interventions commenting on criticisms from interested private individuals, the Transmission System Operator points out that “there is indeed a serious understaffing problem, negatively affecting the ability of the TSO to perform its duties”.

He then notes that the Electricity Authority of Cyprus (EAC), which is also involved in the implementation of the transmission system expansion, has staffing issues as well: “Furthermore,” the Operator states, “the TPDETS’s ability to meet its responsibilities is closely linked to the EAC, whose staffing is also problematic”.

According to the Operator, “these problems are longstanding and concern both the TPDETS and the EAC, as evidenced in the recent EAC Decision No. 446/2023. Regarding the TPDETS, staffing processes are ongoing. The required time for obtaining licences and completing the works of the Transmission Projects may vary depending on circumstances and prevailing conditions in the electricity grid. The scheduled implementation timelines of the Ten-Year Programme are revised on an annual basis, depending on circumstances and taking into account existing data and any possible developments”.

The Transmission System Operator concludes as follows: “The implementation of the projects also depends on other entities, beyond the TPDETS and the EAC, which is a Core Regulated Activity of the EAC. Therefore, the TPDETS cannot commit to the year of project completion”.

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