Half of the smart electricity meters that the electricity authority (EAC) aimed to install have now been successfully deployed, according to Marios Pappoutis, assistant network operator at the transmission system operator. This announcement was made during a summit of the International Renewable Energy Agency (Irena) held in Abu Dhabi.
The initiative for smart meter installation is part of a broader contract signed in 2024 between the EAC and the Cyprus Telecommunications Authority (Cyta). This contract outlines the plan to install a total of 400,000 smart meters across the island by the end of June next year, with each meter costing approximately €125.
Despite facing various delays over the years, the installation of smart meters has become imperative for the government. It is a key requirement from the European Commission, essential for accessing wider recovery and resilience funds that could significantly benefit Cyprus.
Earlier in 2024, the government issued its latest tender for the installation of these smart meters. Three companies submitted bids: Logicom, NewCytech Business Solutions, and Cyta. Cyta’s bid was the highest at €50 million, while Logicom proposed €33.7 million and NewCytech offered €37.6 million. Ultimately, the EAC deemed Cyta’s proposal the most suitable, paving the way for their involvement in the project.
However, a subsequent ruling by an administrative court raised concerns when it found Cyta ineligible to provide the service due to its business scope. This decision jeopardised access to European Commission funds, with Cyprus facing the risk of losing up to €35 million in grants if at least 50,000 smart meters were not installed by the end of 2024.
The potential financial consequences prompted swift action from parliament. In May 2024, lawmakers passed a law amending the telecommunications legislation to enable Cyta to take on the contract. This amendment allows Cyta to engage in various projects that utilise its technical capabilities and assets, ensuring the smart meter installation could proceed without further hindrance.
The completion of the smart meter project is not just about modernising the electricity grid; it marks a significant step towards enhancing energy efficiency and sustainability in Cyprus. With half of the meters already installed, the EAC is set on a course to meet its targets, which could lead to substantial benefits for both consumers and the environment.
