The document provides an overview of Cyprus's energy market and renewable energy sources. Some key points: - Cyprus has a small, isolated energy system and relies entirely on imported fossil fuels for its energy needs. Energy costs are high due to this dependence on imports. - Renewable energy sources and energy efficiency are being promoted through various policies, laws, and incentive programs to help increase the use of local renewable resources and reduce reliance on imports. - The Vasilikos Energy Centre is being developed to facilitate import, storage and distribution of oil products and natural gas, helping diversify Cyprus's energy sources. - Various renewable technologies like solar, wind and biomass are being supported through feed-in

1. Introduction to the energy market in
Cyprus
Energy Service
Ministry of Commerce, Industry & Tourism

2. Small and Isolated Energy System
 No electricity, oil or gas pipelines interconnections with other countries
 All the energy needs are covered by inland production
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

3. Cyprus Energy System – The Challenges
 Small and isolated energy system
 High increase rates of energy consumption
 Almost entirely dependent on imported fuels
 (Diesel, HFO – mainly used for power generation in the oil-fired power
plants, LFO, LPG, marine fuels, lubricants, gasoline, kerosene and jet fuel).
 The remaining system is balanced by imports of pet-coke and coal used by
the cement industry and by renewable forms of energy (mostly solar energy).
 High cost of energy supply
 Seasonality on energy demand
 Environmental constrains
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

4. High Increase Rates of Energy Demand
During the decade 2000-2010
 Final Energy consumption increased by 1.7% at an average annual basis
 Electricity consumption increased by 6.0% at an average annual basis
 GDP increased by 3.2% at an average annual basis
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

5. High Cost of Energy Supply
 In 2010, the energy imports cost raised to €1.27 billion, representing 19.7% of the country's
total import cost or 6% of GDP.
 In 2010, the energy imports cost was equivalent to 111% of the value of the country's total
exports
Cost of Energy Imports
 Thus, the Current Account deficit for 2010 was 7,8% compared to a deficit of 1,8% in the no-
oil import scenario
 A 10 dollar increase on the oil price is expected to have an increase of 0.6 percentage units
on Cyprus inflation
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

6. High Oil Prices
 The average selling price (prior taxation) of diesel and petrol is systematically higher than the
corresponding EU27 prices.
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

7. Special Problems – Seasonality on Energy
Demand
 Due to seasonality on energy demand, the maximum capacity of wind energy installations is
calculated to be maximum 30% of the total capacity in order to have system stability,
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

8. 2010 Energy Balance
Primary Energy Consumption Final Energy Consumption
Solid Electricit
Fuels y
Solid
RES 3,9% 21,8%
Fuels
3,7%
5,6%
Oil
Product
Oil RES
s
Products 5,4%
67,2%
92,4%
Final Energy Consumption per Sector
Commerce
& Services
11% Agriculture Transport
2% (Road)
Household 39%
16%
Industry Transport
15% (Air)
15%
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

9. OVERVIEW OF THE POWER
GENERATION SECTOR
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

10. Power Generation Sector
 Power generation and supply have been liberalised since the
accession of Cyprus to the European Union (May 2004).
 Since 1st of January 2009 the electricity market has been liberalised
for all non-domestic customers.
 Independent Power Producers (IPPs) need to obtain a relevant
licence from the Cyprus energy regulating Authority (CERA) in order
to be allowed to produce and supply electricity.
 IPPs may also connect to the National Transmission System by
applying to the Transmission System Operator (TSO).
 EAC is the main provider of electricity both for industrial and
commercial purposes (the Vasilikos Cement Company produces
electricity for its own needs). EAC is also the owner of the National
Transmission System.
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

11. Key Players in the Cyprus Electricity Market
 Energy Service - Ministry of Commerce, Industry and Tourism
 Cyprus Energy Regulatory Authority (CERA)
- Responsible for the regulation and the oversight of the energy market in
Cyprus
 Electricity Authority of Cyprus (EAC)
- A publicly-owned utility currently dominates the Cypriot electricity market
- Owns the transmission and distribution assets
- Remains the sole active supplier
 Transmission System Operator (TSO)
- Responsible for the operation of the national transmission system and
the objective management of electricity trading
- Authorized body for issuing quarantines of origin
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

12. Power Stations
 At present EAC operates three power
stations with a total installed capacity of 3 x 130 MW
1118 MW. Vasilikos Steam Turbine 390MW
Power Units
 According to EAC´s development plan, a Station 1 x 38 MW
number of new CCGT units running on
38MW
Gas Turbine Unit
natural gas are scheduled for future
operation. Dhekelia
6 x 60 MW Steam
Power 360MW
Turbine Units
Station
 Apart from establishing a number of new
gas turbine generators, EAC also plans to 6 x 30 MW Steam
gradually convert the existing oil-fired 180MW
Moni Turbine Units
thermal power units to run on natural gas.
Power
Station 4 x 37.5 MW
150MW
 A new CCGT unit (220MW) is currently Gas Turbine Units
being installed at the Vasilikos Power
Station (the unit has already operated in
open cycle and currently works are being Total Installed Power 1118MW
carried out to allow for combined cycle
operation). The unit will be able to run either
on diesel or natural gas.
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

13. VASILIKOS ENERGY CENTRE
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

14. Vasilikos Energy Centre
 The Energy Centre will include:
 Facilities for the importation, storage and distribution of all oil products
traded in Cyprus, including biofuels.
 The storage facilities will provide for Cyprus’ operational and strategic petroleum products
requirements.
 The main philosophy of the oil terminal is to operate as a hub for circulation of oil
products in the Eastern Mediterranean area, allowing petroleum products trading
companies (both existing and new) to utilise the terminal facilities for the storage and
distribution of their products both locally and regionally.
 Facilities for the importation, storage and regasification of Liquefied
Natural Gas (LNG).
 These facilities will be such as to accommodate the current and readily foreseeable future
requirements of Cyprus in natural gas.
 At the initial stage natural gas will be used for power generation in combined cycle gas
turbines (CCGTs).
 The Energy Centre will be situated at the Vasilikos area on the south coast
of Cyprus, next to the Vasilikos Power Station which is owned and operated
by the Electricity Authority of Cyprus (EAC).
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

15. Vasilikos Energy Centre – Site
Map Highway Nicosia-Limassol
Energy Centre
Vasilikos Power Plant
Hellenic Chemical Industries
(Demolished)
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

16. Vasilikos Energy Centre – Layout
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

17. RENEWABLE ENERGY
SOURCES AND ENERGY
CONSERVATION
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

18. Legislative - Financing Framework for RES
& Energy Saving
 Legislative Framework for RES was enacted in 2003:
A Special Fund has been created aiming at support of RES and Energy
Saving investments in Cyprus. The revenues (almost €22M) of this fund are
Coming from the consumers paying an additional tax of 0.44 eurocents/kWh
 Implementation of the Energy Performance Buildings Directive:
Regulations for minimum energy efficiency requirements for new buildings
have been enforced since 21/12/07
 Promotion of Biofuels for transport Law [66(I)/2005 & 58(I)/2007)
 Promotion of Combined Heat and Power Law (2006)
 Eco Design for Energy Using Product Law (2007)
 Energy End-Use Efficiency and Energy Services Law (2009)
 Procedures for licensing and interconnecting wind and photovoltaic
installations to the national grid have been specified
 Integrated land planning policy for large RES developments
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

19. Support Schemes
SCOPE
To provide financial incentives for the promotion of investments in the
field of Energy Conservation and Renewable Energy Sources
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

20. RES & Econ - Support Schemes
Main RES Categories:
Solar Thermal Systems (space heating/cooling & Water
heating)
Photovoltaic Systems (stand-alone & grid Connected)
Wind Systems (electricity production & water pumping)
Concentrated Solar Plants (electricity production)
Biomass and Biogas utilization (space heating/cooling &
electricity production)
Geothermal Heat-Pumps (space heating/cooling)
Small Hydroelectric systems (electricity production)
Desalination using RES
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

21. RES & Econ - Support Schemes
Main Energy Conservation Categories :
For existing local Enterprises (they must save at least
10%)
Housing Sector – Thermal Insulation
Transport (Vehicles : Hybrid, Electric, Dual Propulsion /
Flexible Fuel and Low CO2 emissions)*
*(This category is not in operation since 2010)
Cogeneration of electricity and heat/cooling
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

22. 2011 SUPPORT SCHEMES
PARALLEL OPERATION OF 3 SCHEMES
1. Grant Scheme for the promotion of Electricity Production from large
commercial wind farms, solar thermal and photovoltaic systems, the utilization
of biomass.
2. Grant Scheme for the promotion of Energy Conservation and the Renewable
Energy Sources for Individuals (Natural Persons) and Organizations that dο
not exercise economic activity.
3. Grant Scheme for the promotion of Energy Conservation and the Renewable
Energy Sources for Individuals and Legal Entities as well as Public Sector
Entities that exercise economic activity.
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

23. RES & Econ - Support Schemes
2011
Incentives
 Grant subsidy (15 – 55% of the capital investment)
 Feed in tariff policy – 20 years
 Wind systems: €0.166/kWh
 Solar Thermal: €0.26/kWh
 PV systems (upto 150KW): €0.31/kWh (limitation 2MW/year)
 PV systems for housing sector (up to 7KW): €0.35/kWh (limitation
2MW/year)
 Biomass exploitation systems: €0.135/kWh
 Biogas exploitation systems: €0.1145/kWh
2% compensatory benefits to neighboring communities for wind
systems, solar thermal, biomass & biogas exploitation
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

24. Financing Tool for the Support of RES-el
2% of Income (Wind and CSP only)
Local Authorities
RES electricity
producers Special Fund
Subsidy
0.44cent/kWh
Electricity
EAC Grid Consumers
Electricity
Cash Flow
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

25. Financing Tool for the Support of RES-hc
Grants for
RES installations Special Fund
Subsidy
0.44cent/kWh
Electricity
EAC Grid Consumers
Electricity
Cash Flow
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

26. Applications Submitted and Paid
Application Status 2004-2010
20000 25.000,00 €
18000
16000 20.000,00 €
Number of Applications
14000
Milion Euros
12000 15.000,00 €
10000
8000 10.000,00 €
6000
4000 5.000,00 €
2000
0 0,00 €
2004 2005 2006 2007 2008 2009 2010
Year
Applications Submitted Payed Applications Euros Paid
Total Grants/Subsidies 2004-2010 : 67.090 million euros at 44.176 applicants
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

27. Applications per Category
2010
2009
2008
2007
2006
2005
2004
0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000
Energy Consevation Thermal Insulation
Thermal Insulation in mountainous areas Geothermal Heat Pump for heating and cooling
Co-Generation Large Wind Systems
Small Wind Sys tems up to 30KW Purchase of new Hybrid Vehicle
Purchase of new Vehicle with low emissions of carbon dioxide < 120gCO2/Km Purchase of new electric vehicle
Central s olar thermal systems for heating water Solar Systems for Space Heating and Cooling
Solar Systems for Heating Water Solar thermal systems for water pools
Biomass Utilaization for heating and cooling Photovoltaic Systems connected to the Grid
Stand Alone Photovoltaic Sys tems up to 20kW Photovoltaic Systems for water pumping
Windmills for water pumping Electricity Production from Biomass and Biogass
Biomass for Heating and Cooling
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

28. Applications to Cyprus Energy Regulatory
Authority (CERA)
 CERA has accepted the following applications in RES
Wind:
 More than 1000MW
 CSP: 270MW
 Photovoltaic Systems> 20KW: 22 MW
 Hydroelectric: 330 KW
 Biomass:11,35 MW
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

29. Elimination of the Administrative Barriers
 The Energy Service of the Ministry of Commerce, Industry and Tourist
has undertaken the role of “one stop shop” in order to:
 - Expedite the procedures
 - Facilitate the materialization of investments for the promotion of
alternative energy sources and energy conservation technologies.
 Fair and transparent terms for connection of an electricity producer
from RES to the national grid
 Existence of energy market rules which eliminate distortions
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

30. Department of Town Planning and Housing
Photovoltaic Systems (ΚΔΠ 869/2003)
 New legislation for supporting standard PV installations:
 Regulation 869/2003
 Rule 2/2006.
 Ministerial Order 3/2008
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

31. RES Business Environment
Cyprus offers an attractive, stable, secure
and transparent business environment for
investments in the field of renewable energy
sources and energy saving
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS

32. Thank you for your attention
Questions ?
ENERGY SERVICE – MCIT
REPUBLIC OF CYPRUS