The tender was initiated by the Energy Service of the Ministry and implemented on January 30 by the Treasury. Overall, the Ministry selected 23 projects of various sizes totaling 50 MW. Once completed, the projects are expected to generate around 80 GWh of energy annually.
The tender drew a lot of interest from both Cypriot and foreign companies. Specifically, there were four different tenders for the different project sizes auctioned, which attracted 121 investors and 2,150 bids. Competition among the high number of participants, in combination with the last year’s overall fall in photovoltaic components’ prices, led to an average tender price of €0.0866/kWh.
As such, the Electricity Authority of Cyprus (EAC), which purchases all power from renewable energy sources, will be able to buy the generated power from the 23 projects at prices much lower than the €0.1540/kWh it currently pays to produce electricity. The Cypriot Ministry anticipates this will save 43.76%, or €5.8 million per year.
The tender prices are also significantly lower than the subsidy tariffs published by the Cypriot energy regulator at the last round of licenses for small to medium photovoltaic parks issued in December.
The following photovoltaic projects have been selected via the tender: