The platform for the Competitive Electricity Market, which also includes the Energy Exchange, will be ready to operate by the fourth quarter of 2022, the Cyprus Transmission System Operator (CTSO) tells CNA.
In the last quarter of 2022, the electronic platform through which the Competitive Electricity Market (CEM) will operate in Cyprus, will be ready, according to what the Executive Director of the CTSO, Stavros Stavrinos, told CNA.
"We are in the final stages of receiving the electronic platform, through which the CEM will operate in Cyprus, in the last quarter of 2022, as expected", he added.
He stated that the Competitive Electricity Market of Cyprus has been based on the European Net Pool market model and will regulate all transactions of purchase and sale of electricity at a wholesale market level.
More specifically, Stavrinos said that the CEM will include financial markets of the stock market type, which are the Futures Market and the Day-ahead Market, but also other types of markets, such as the Real Time Balancing Market, which will ensure the energy balance between production and demand, every 30 minutes (balancing).
Regarding the clearing of transactions, Stavrinos said that the CTSO signed a contract with the Cyprus Stock Exchange on October 20, for the provision by the CSE of the services of the Clearing House, when CEM starts to operate.
Stavrinos clarified that the main clearing will be done monthly with the issuance of an invoice, but there will also be daily clearings that will concern the Day-ahead Market, as he said.
He noted that, after the CEM starts operating, the Intra-Day Market will be added.
At this point, he explained that production should always be balanced with demand because if there is a large imbalance between production and demand, as he said, there might be a blackout.
CTSO also told CNA that the operation of the Futures Market, the Day-ahead Market and the Real Time Balancing Market will be governed by the electricity purchase rules, approved by the Energy Regulatory Authority (CERA).
Regulations for the Guarantees
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Finally, Stavrinos said that the CSE has already submitted to the CTSO the regulations for the securities (guarantees). They are currently being examined and will be sent to CERA for approval.
He added that the regulations regulate the way in which the participants in the CEM will be considered creditworthy, in order to avoid insolvency, causing imbalance in the market due to the fact that a person will not pay their financial obligations.
He noted that as a securities body, the CSE will assure that the participants in the competitive market will have sufficient guarantees to ensure smooth clearing and will also do the clearing of financial transactions.
Source: CNA
