07 – SCOPE OF ACTIVITIES TO BE FUNDED

1. Part A of the Scheme encompasses the following four categories, which include both groups operating under a fixed-price sales agreement (feed-in-tariff) and newly constructed facilities:
   1. investment aid for the storage units installed and coupled by renewable energy plants designed for self-consumption less than 1MW;
   2. investment aid for micro-scale hybrid power plants with a capacity of up to 120 kW (in accordance with Article 5(2)(b) or Article 5(4) of EU Regulation 2019/943);
   3. investment aid for small-scale hybrid power stations, with capacity ranging from over 120 kW up to and including 1 MW, in line with the small-scale definition according to the 2018/2001 RES Directive; and
   4. investment aid for hybrid power plants with capacities exceeding 1 MW, targeting the acquisition of connection approvals from the DSO up to 8ΜW and TSOCy for systems above 8MW.
2. For clarity, small-scale projects[1] for electricity generation or storage are defined as those with capacities below or equal to 1 MW, as per Article 43 of the European Commission Regulation (EU) 2023/1315 dated June 23, 2023. The latter also introduces the following exceptions:

• 1. If the type of enterprise is small or medium and the technology type is “other than wind” – projects below or equal to 6 MW installed capacity are small-scale, otherwise they are large-scale.
  2. For projects 100% owned by micro or small enterprises for wind generation only, projects below or equal to 18 MW of installed capacity are defined as small-scale.

3. To incentivise competition in each category, the following restrictions are also introduced:
   1. If the total investment aid sum requested by all applicants who submitted their offers within a particular category is less than the budget allocated for this category, only 80% of the requested total investment amount will be funded;
   2. Each category must receive a minimum of four (4) applications from independent companies to proceed. If fewer than four applications are received for a specific category, the tender for that category will be cancelled.
   3. The cumulative capacity awarded to any single company or group of companies should not surpass 10 MW for low/medium voltage projects or 20 MW for high voltage projects. For existing companies, the limits are 20 MW for wind and photovoltaic projects, and 5 MW for biomass projects. To clarify, a single company or a group of companies cannot be awarded more than 20 ΜW in total across all voltage levels. Specifically, for low/medium projects, the limit is 10 ΜW (i.e., a company can hold up to 10 ΜW in low voltage projects and up to 10 MW in high voltage projects). These limits may be adjusted in future calls depending on the level of participation and the pricing of the awarded projects.
   4. An applicant is allowed to only request investment aid which is 25% or less of the total budget dedicated to a particular category.
   5. Each tender round will implement an oversubscription rule. Once applicants are screened and qualified based on the relevant eligibility criteria, the capacity of eligible projects will be assessed. Should this capacity exceed the tendered capacity by no more than 20%, it will be proportionately reduced to maintain a minimum oversubscription level of 20%.
   6. Project activities (installations) must be located in Cyprus.
   7. Only RES projects expected to enter into commercial operation within 12 months or before 1/12/2026 shall be funded. Therefore, applicants need to demonstrate sufficient maturity of the project and get hold of:
   8. CERA Permit for construction and operation of the plant (for existing projects a modification for CERA licence will be needed), if applicable.
   9. Planning Permit from the Town Planning and Housing Department. The Planning Permit acquisition procedure also includes the related Environmental Impact Assessment. Existing projects will be required to modify their licence.
   10. A construction Building Permit should be obtained at the moment of the proposal submission.
   11. Land: Access rights (ownership or use rights) should be obtained at the moment of the proposal submission.
   12. Grid Connection (TSO/DSO): an application for the grid connection should be launched to obtain preliminary connection terms. The payment for a binding reservation of grid capacity may be done after the grant award.
   13. Final Connection Terms (TSO/DSO): The final connection terms will be issued by the TSO or DSO based on the size of the plant (LV/MV/HV). Due to limited hosting capacity in some areas, different connection terms may be issued for some projects located in saturated areas.
   14. Beneficiaries are required to report renewable energy generated annually and provide an initial timeline that outlines the yearly production profile in conjunction with the storage capacity.
   15. It is important to note that any delays in obtaining the required licenses will be the sole responsibility of the applicant. No extensions or refunds will be granted for delays caused by any authority, as the entire licensing application process is conducted through the Digital One Stop Shop platform.

[1] Operating aid for the promotion of energy from renewable sources in small projects shall be compatible with the internal market within the meaning of Article 107(3) of the Treaty and shall be exempted from the notification requirement of Article 108(3) of the Treaty, provided that certain conditions are fulfilled.

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