The first days of operation of the Competitive Electricity Market (CEM) went smoothly and without any particular problems, and - in the initial stage - saw 17 participants joining.
In his statements to InBusinessNews, the Electricity Market Operation Manager at Transmission System Operator Cyprus (TSO) Constantinos Varnava, among other things, praised the professionalism and self-sacrifice of the employees at the TSO.
More specifically, when asked how the first days of operation of CEM went, Varnava said that "everything went very smoothly, without any major problems and we are already presenting both the prices and quantities of the day-ahead market on our website."
"There was essentially nothing that was unexpected," he added, noting that this is a result of the very intensive preparation and work that took place before the market opened. According to Varnava, "very intensive work was done by all the Operator's staff. All the staff worked with self-sacrifice and professionalism, overtime without wanting to be paid, that is, with passion, and I am truly very pleased with our staff."
At the same time, the Electricity Market Operation Manager at TSO spoke of a huge project, which, as he underlined, "is one of the few that was completed on time and where everything is running smoothly and we truly feel great internal satisfaction that we managed to make the competitive electricity market operate without any significant problems."
The 17 participants in the competitive market
With regard to the participants in the competitive electricity market, which currently number 17, it is worth mentioning that they are divided into four categories: Producers, Suppliers, RES Cumulative Representation bodies and RES producers.
Specifically, of the 17 participants, two are Producers - one of them with a "virtual unit", with a capacity of less than 5 MW -, ten are Suppliers, nine are RES Cumulative Representation Bodies and three are RES Producers.
As for the producers, these are the EAC [Core Regulated Activity (CRA) of Generation] and W2E1 Ltd, while the following participate as Suppliers:
- EAC Core Regulated Activity (CRA) of Supply,
- Bioland Promithia Ltd,
- E & B (Energy & Beyond) Ltd,
- Petrolina Electric Ltd,
- Vassiliko Cement Clean Energy Supply Ltd,
- EKO Energy Cyprus Ltd,
- F.E. First Electric Supply Ltd,
- ABIO Power Ltd,
- Synenergia Ltd, και
- E. FOS Ltd
In relation to the cumulative RES Culmulative Representation bodies, according to the data of the Cyprus Transmission System Operator, these are:
- Bioland Aggregator “Aphrodite” Ltd
- Bioland Aggregator “Athena” Ltd
- Petrolina Electric Ltd
- Vassiliko Cement Clean Energy Supply Ltd
- EKO Energy Cyprus Ltd
- ABIO Power Ltd
- Synenergia Ltd
- E. FOS Ltd
- GG Green Energy Aggregator Ltd
Regarding RES Producers, they are:
- EAC Core Regulated Activity (CRA) of Generation
- Ioannou Alternative Energy Ltd
- A.Kerasi (Fotovoltaika) Ltd
The three individual markets
It is also noted that the electricity market essentially includes three sub-markets, with different purposes.
As the Electricity Market Operation Manager at TSO explained in his statements to InBusinessNews , one is the Forward Market, in which participants enter into bilateral contracts at prices and terms that they determine themselves, while the second is the Day-Ahead Market, in which suppliers will supplement the energy they have purchased forward to satisfy their customers' demand for the next day.
After also clarifying that sales offers are submitted for every half hour, he indicated that the most expensive sales offer determines the price at which all offers are paid (limit price).
Regarding the third sub-market, Varnava said that this is the Real-Time Balancing Market, which will operate on a 24-hour basis and in which the TSO, as the system operator, will accept offers from participants to increase production or consumption, so that they are constantly balanced and the electrical system operates safely, underlining that offers will be submitted the previous day by 4pm.
Eurobank 's decisive role
It is worth mentioning that Eurobank participates in the competitive electricity market as a General Clearing Member in the Cyprus Competitive Electricity Market, undertaking the following basic functions for the contracted participants, with a view to the security and integrity of transactions:
- Receiving clearing and settlement results from executed transactions
- Monitoring and fulfillment of financial obligations (daily cash settlements, tax obligations)
- Collateral management and coverage of liabilities arising from the calculated risk
- Credit limit management for the smooth processing of orders and transactions.
As the bank specifically states in its announcement, "Eurobank's contribution was decisive for the successful activation of the market, demonstrating flexibility, expertise and immediate response to a complex and demanding project."
And this, it emphasises, is because it is the only bank or investment services company that has acquired the status of General Clearing Member in the Cyprus Energy Market, essentially strengthening the operational readiness and functional integrity of the new market.
Eurobank, he adds, "with many years of experience as a General Clearing Member on the Stock, Derivatives and Energy Exchanges in Greece, has consistently occupied leading positions in the market, with highly qualified, certified executives, advanced technological systems and flexible business models, tailored to the needs of its customers."
"Eurobank's participation in the Cyprus Competitive Electricity Market does not concern the formation of energy prices, but the provision of institutional clearing and settlement services, enhancing the transparency, security and operational integrity of the market," he emphasizes, underlining that "the bank supports the evolution of the energy market towards a more competitive and sustainable model, with respect for the needs of consumers and businesses.
"This specific initiative is part of the broader context of the Eurobank Group's strategic presence in Cyprus," it concludes.
(Source: InBusinessNews)
