Cyprus Electricity Market: Initial Data and Challenges

One month of operation of the Competitive Electricity Market (CEM) in Cyprus shows smooth technical operation, but also limited competition. The average clearing price in the Day-Ahead Market (DAM) was €162.72/MWh.

86% of the energy came from conventional production and only 14% from RES. 'Must-run' units create structural costs, limiting competition. The introduction of natural gas and energy storage systems is crucial for market development.

Improvement is expected with the integration of energy storage and natural gas, leading to a 10-15% reduction in electricity generation costs over the next two years.