Nicosia, Cyprus. A report released on Thursday by the audit office said the rapid expansion of solar power grids did not reduce electricity bills and instead concentrated profits among a small group of private companies while consumers absorbed rising costs.
Findings on regulation and oversight
The report examined the conduct of the electricity authority (EAC), the energy regulatory authority (Cera) and the energy ministry, concluding that regulatory choices favoured market competition over consumer benefit.
Limited role for EAC in renewables
The dossier focused on the limited role allowed to the state-funded EAC in developing renewable energy sources, particularly large-scale solar panel systems.
According to the audit office, between 2020 and 2024 the bulk of new renewable electricity capacity was granted to private investors.
Private dominance in new capacity
Around 420 megawatts of solar and wind farms, excluding rooftop systems, are now operated exclusively by private entities, compared with 20 megawatts owned by the EAC.
Five major investors alone account for roughly two thirds of that private capacity.
Impact on consumers and costs
“The significant delay in the integration of renewable energy projects into the EAC’s production capacity has given private companies an advantage,” the report said, adding that “to date, the consumer has not benefited from the entry of these companies into the market”.
The report said households were burdened with higher costs, including the purchase of greenhouse gas emission allowances totalling €955m between 2020 and 2024, which were passed directly on to bills.
Auditor-general Andreas Papaconstantinou wrote that “in practice, the insufficient presence of renewable enrergy in the EAC’s production resulted in the end consumer losing any potential benefits”.
Papaconstantinou said competition “is not an end in itself”, but a means to ensure “affordable, transparent prices” for consumers.
What changes do you think would ensure renewable energy growth leads to lower electricity bills for you?
