Energy Market Landscape: Cyprus

Introduction

Evolving competitive dynamics are rapidly and significantly changing the face of the gas and power markets in and around Europe. As such, a timely and broadly based understanding of the market landscape is vital for players throughout the energy value chain. Central to this is an understanding of the exact stage of competitive development reached in each market, and how it is likely to change.

Scope

• Up-to-date insight on market structures, regulatory developments, supply and demand balances, asset developments and player strategies.
• Insight into current levels of gas and power competitive intensity benchmarked against 33 relevant markets (EU 27 and 6 related countries).
• Forecasts of how the nine metrics making up the competitive intensity scores will change by 2012.

Highlights

The MCI scores draw on nine underlying metrics grouped into three categories: Market Framework (Regulatory Effectiveness; Pricing Regime; Ease of Third Party Access), Supplier Push (Wholesale Fragmentation, Retail Fragmentation, Traded Market Maturity), and Customer Pull (Access to Market Information, Consumer Representation, Propensity to Switch)

Each of the Energy Market Landscape series provides a profile of both the relevant gas and power market. Issues examined include regulatory structures, player strategies and supply/demand dynamics. There is also a list of operational, planned and under construction infrastructure including power stations, pipelines, LNG terminals and storage sites

Reasons to Purchase

• Obtain up-to-date, relevant and standardized information on European and related energy markets from a single source.
• Have a logical framework to monitor market developments and emerging trends, identify opportunities and plan strategies accordingly.
• Assess current and future gas and power market competitive environments by gaining insight into factors driving market competitiveness.

Table Of contents

DATAMONITOR VIEW 1

CATALYST 1
SUMMARY 1
ANALYSIS 2
Gas Market Overview 2
Industry Landscape 2
Gas Infrastructure 3
LNG 3
Electricity Market Overview 4
Industry Landscape 4
Retail Market Players 4
Electricity Supply and Demand Analysis 4
Electricity Infrastructure 8
Generation Capacity 8
Electricity Networks 9
Competitive Intensity Analysis Overview 10
Datamonitor's MCI Index offers a robust framework for measuring the development of energy Market Competitive Intensity 10
The MCI Index shows how competitive a particular market is. This has applications for both new entrants seeking to enter the market, and established players and former monopoly incumbents seeking to defined their market share from new entrants. 10
The MCI Index assesses markets as they stood in early 2010 and forecasts conditions likely to be prevailing in July 2013, five years after full market opening. 10
The MCI assessment draws on nine underlying metrics grouped into three broad clusters: Market framework; Supplier Push; Customer Pull 11
Each of the nine pillars has an assessment scale to allow for the comparison of diverse markets (see appendix for more details) 12
Gas Market Competitive Intensity 13
A gas market will not emerge in Cyprus during the forecast period 13
Cyprus does not currently have a gas market 14
Cyprus does not currently have a gas market 14
Electricity Market Competitive Intensity 15
Cyprus's ranking changes only slightly over the forecast period 15
Cyprus's power market achieves only a modest score 16
Market Framework scores will remain modest in 2013 16
Effectiveness of Regulator [2010: 5/10 2013: 6/10] 16
Ease of Third Party Access [2010: 2.5/10 2013: 3.5/10] 17
Pricing Regime [2010: 1.5/10 2013: 1.5/10] 17
The EAC monopoly drags the Supplier Push metrics down 17
Wholesale Market Fragmentation [2010: 0.1/10 2013: 0.1/10] 17
Retail Market Fragmentation [2010: 0.1/10 2013: 0.1/10] 17
Traded Market Maturity [2010: 0.1/10 2013: 1/10] 17
Customer Pull metrics are very much at the lower end of the scale and are likely to remain so in July 2013 17
Access to Market Information and Assistance [2010: 1.5/10 2013: 2/10] 17
Consumer Representation [2010: 0.1/10 2013: 1/10] 17
Propensity to Switch [2010: 0.1/10 2013: 0.1/10] 17
Commercial opportunities for new entrants are unlikely to be found in Cyprus 18

COMPETITIVE INTENSITY ANALYSIS APPENDIX 19
MCI Scores Summary 19
MCI Scoring Scales 22

APPENDIX 27
List of power stations in Cyprus 27
Definitions 27
Ask the analyst 28
Datamonitor consulting 28
Disclaimer 28

List of Tables

Table 1: Cyprus LNG terminals 3
Table 2: Cyprus major power retail players, 2008 4
Table 3: Cyprus power supply and demand balance, 2008─09e 5
Table 4: Market Competitive Intensity, Cyprus 2010 and 2013 19
Table 5: MCI Additive, Europe 2010 and 2013 20
Table 6: MCI Multiplicative, Europe 2010 and 2013 21
Table 7: Cyprus power generation assets 27

List of Figures

Figure 1: Cyprus power production by fuel type, 1990─2009e 6
Figure 2: Cyprus power sectoral consumption, 2009e 7
Figure 3: Cyprus power consumption, trends and forecasts, 1990─2020f 8
Figure 4: MCI Assessment Scale 10
Figure 5: MCI Assessment Framework 11
Figure 6: MCI Scales 12
Figure 7: European Gas Market Competitive Intensity, 2010─13 13
Figure 8: Gas Market Competitive Intensity, Cyprus 14
Figure 9: European Power Market Competitive Intensity, 2010─13 15
Figure 10: Power Market Competitive Intensity, Cyprus 16
Figure 11: Market Competitive Intensity, Cyprus 18
Figure 12: Scale for MCI Assessment, Effectiveness of Regulator 22
Figure 13: Scale for MCI Assessment, Ease of Third Party Access 22
Figure 14: Scale for MCI Assessment, Pricing Regime 23
Figure 15: Scale for MCI Assessment, Wholesale Market Fragmentation 23
Figure 16: Scale for MCI Assessment, Retail Market Fragmentation 24
Figure 17: Scale for MCI Assessment, Traded Market Maturity 25
Figure 18: Scale for MCI Assessment, Access to Market Information 25
Figure 19: Scale for MCI Assessment, Consumer Representation 26
Figure 20: Scale for MCI Assessment, Propensity to Switch 26