Cyprus Climate Conference
1 / 37

- PowerPoint PPT Presentation

  • Uploaded on

Cyprus Climate Conference. “Cyprus' Current Energy Policy & The Possibilities for Renewable Energies”. Solon Kassinis Director of Energy Service Ministry of Commerce, Industry & Tourism Republic of Cyprus. November, 27 2009 – Goethe Centre Nicosia. Presentation Outline.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about '' - melvin-gray

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
November 27 2009 goethe centre nicosia

Cyprus Climate Conference

“Cyprus' Current Energy Policy & The Possibilities for Renewable Energies”

Solon KassinisDirector of Energy ServiceMinistry of Commerce, Industry & TourismRepublic of Cyprus

November, 27 2009 – Goethe Centre Nicosia

Presentation outline
Presentation Outline

  • Cyprus Energy System – Main Indicators

  • Cyprus Energy Policy – RES & Energy Saving

  • Legislation – RES & Energy Saving

  • RES Potential

  • RES Evolution

  • RES Targets

  • Development of RES – Measures & Tools

  • Energy Saving – Measures & Tools

Cyprus energy system main indicators
Cyprus Energy System: Main Indicators

Primary Energy Consumption – 2008

Final Energy Consumption – 2008

Cost of Oil Products Import

(19% of the country's total imports - 2008)

Final Energy Consumption by Sector – 2008

Cyprus energy system main indicators1
Cyprus Energy System: Main Indicators

Final Energy Consumption

(2.6% mean annual increase)

Final Electricity Consumption

(6.8% mean annual increase)

Seasonal Fluctuation in Electricity Demand

Energy system in cyprus key characteristics
Energy System in Cyprus: Key Characteristics

  • Isolated energy system

  • High degree of dependence on imported oil

  • High increase rates of energy consumption

  • High cost of energy supply

  • Electricity generation is almost 100% oil fired and absorbs on average, 42% of the total primary energy consumption

  • Limited oil storage capacity

  • Energy intensiveness of the economy, particularly in the passenger transport sector

  • Seasonality on energy demand

  • Environmental constrains

  • High potential of rational use of energy and energy conservation

  • Significant potential of renewable sources

Cyprus energy policy
Cyprus Energy Policy

  • Security of energy supply

  • Contribution of the energy sector to the productivity and competitiveness of the national economy

  • Environmental protection and sustainable development

Main Objectives

Cyprus energy policy res energy saving
Cyprus Energy Policy – RES & Energy Saving

  • Maximizing the efficient use of domestic resources of renewable energy

  • Saving energy both in primary form and in energy end-use

  • Promote RES in electricity and heat generation

  • Replace oil in the area of transportation with biofuels

  • Promote efficient electricity and heat co-generation in industries

  • Adopt investments in RES based on the criterion of the overall net benefit

  • Making efficient use of energy by putting into place mechanisms that give incentives to users

  • Efficiently develop RES stations based on physical planning

  • Limit bureaucracy and simplify all licensing procedures

  • Growth “energy awareness”

Main Priorities

Legislative framework for res energy saving
Legislative Framework for RES & Energy Saving

  • Promotion of Energy Conservation and the Encouragement of the Use of Renewable Energy Sources Law (2003)

  • Procedures for licensing and interconnecting wind and photovoltaic installations to the national grid

  • Integrated land planning policy for large RES developments

  • Energy Performance of Building Law (2006 & 2009)

  • Energy End-Use Efficiency and Energy Services Law (2009)

  • Promotion of Biofuels for Transport Law (2005 & 2006)

  • Promotion of Combined Heat and Power Law (2006)

  • Eco Design for Energy Using Product Law (2007)

Res potential
RES Potential

  • The average wind speed in some areas, which is suitable for the installation of wind farms, is about 5-6 m/s

Wind Energy


  • Limited potential for wind energy generation

  • Land planning problems (Cyprus, developed tourism country)

  • Oppositions of local communities

  • Conflict with real estate (touristic) development

Res potential1

Overall annual solar irradiation received by a solar collector

RES Potential

  • Cyprus enjoys more than 300days with 75% of sunshine

  • Cyprus holds the unofficial “World Record” in solar water heating with almost every household having a system installed (more that 750,000m2 of solar collectors installed)

Solar Energy

Res potential2
RES Potential collector

  • More that 3.2MW of PV systems have been installed

  • Per capita, Cyprus ranks the 6th highest in the EU with 2Wp per head of population

Solar Energy


  • Low efficiency

  • High capital investment (very high initial cost)

  • Need very high subsidies in order to be viable

  • R&D

Res potential3
RES Potential collector

  • Significant amount of agricultural residues

  • Significant biogas potential (exploitation of agricultural residues, waste disposal plants, exploitation of landfill gas from the waste disposal plants)




  • Limited suitable agricultural land

  • Water Scarcity

  • High dependence on imports to satisfy the targets (indicative and mandatory targets)

  • High cost of imports

Res evolution
RES Evolution collector

% RES in the Final Energy Consumption

Solar : 2.84 %

Biomass : 0.88 %

Biofuels : 0.72 %


(PV, biomass) : 0.06 %

Res evolution1
RES Evolution collector

Solar Thermal – Energy Production


Electricity Production- PV Systems

Installed PV Systems (Cumulative)


Res evolution2
RES Evolution collector

Biomass – Energy Production


Electricity Production- Biogas

Electricity Production- Biogas (Cumulative)


2 new biogas plants (total capacity of 1MW) are expected to operate at the beginning of 2010

Res evolution3
RES Evolution collector


  • One company has been registered for the production of biofuels (7,460 tn for the year 2008)

  • 200 tn/yr for own use

  • 2% (in the energy content) annual mandatory substitution of transport fuels with biofuels

  • Substitution of diesel up to 4-5% v/v with biodiesel. No substitution of petrol with bioethanol

Wind Energy

  • First Wind Farm 82MW

  • Online: end 2010

  • It will contribute to electricity production by 2-3%

Res targets
RES – Targets collector

RES contribution to the primary energy consumption (indicative target)

Electricity production from RES (indicative target)

RES contribution to the final energy consumption (compulsory target)

Biofuels in overall transport petrol and diesel production (indicative target)

RES share in the overall transport petrol and diesel consumption (compulsory target)



Development of res measures tools
Development of RES – Measures & Tools collector

  • Financing programmes for the support and implementation of RES

  • The allocation of an explicit RES development roadmap

  • The elimination of the administrative barriers that prevent the development of RES

  • Measures of raising public awareness

Financing tool for the support of res

2% of Gross Income collector

(wind, biomass, CSP)

Local Authorities

RES Power Producers

Special Fund

subsidy (feed in tariff)







Cash Flow

Financing Tool for the Support of RES

  • A Special Fund has been created aiming at support of RES and Energy Saving investments in Cyprus. The revenues (almost €10M) of this fund are coming from the consumers paying an additional tax of 0.22 eurocents/kWh

  • Implementation of a Programme with a view to encouraging RES Utilisation

  • Provides financial incentives (capital or/and operational aid) in the promotion of Renewable Energy Sources

Grant scheme for res
Grant Scheme for RES collector

  • Total number of submitted applications (2004-Nov. 2009): 20,245

  • Total amount granted (2004-Nov. 2009): 19.2 million Euros

    (~ 6.46 million Euros have been allocated within the year 2009)

Submitted Applications

Allocated Funds (mil. €)

Grant scheme for res1
Grant Scheme for RES collector

  • Grant subsidy 15-55%

    (depends on the type of subsidy, natural or legal entity)

  • Large Scale RES Installations: Feed in tariff policy – 20 years

    • Wind systems: €0.166/kWh

    • Solar Thermal: €0.26/kWh

    • PV systems (21-150KW): €0.34/kWh (limitation 2MW/year)

    • Biomass exploitation systems: €0.135/kWh

    • Biogas exploitation systems: €0.1145/kWh

  • Main Categories

    • Wind energy systems

    • Solar thermal systems

    • Photovoltaic systems

    • Biomass and biogas utilization

    • Geothermal pumps


Res development
RES Development collector

Experimental testing of:

  • solar collectors,

  • solar water heating systems

Solar Systems Laboratory

RES Projects Co-Funded by EU

  • Installation of PV systems in Schools/Governmental Buildings/Army Camps (1.1MW, 65 installations)

  • Solar Heating/Cooling Systems in Governmental Buildings (1MW)

  • Concentrated Solar Power station

Res development program
RES Development Program collector

The proposed action plan includes large scale RES projects for electricity generation for the period 2009-2013 with the possibility of implementing the projects by 2015

RES Roadmap 2009-2013

Wind : 165MW

Solar Thermal: 25MW

PV : 14MW

Biomass : 4MW

Biogas : 3MW


Total : 211MW

Projection end 2010 optimum scenarios
Projection (end 2010) – Optimum Scenarios collector

  • On Grid Small PV Systems from 2.5MW (today)  9.6MW at the end of 2010 (Including 1.1MW from the installation on Public Schools, Governmental Buildings and Army Camps)

  • Biomass Systems expected 9.5MW total installations at the end of 2010

  • Wind Parks 82MW approved already and is expected to have installations up to 124MW at the end of 2010

Electricity production cost comparison pv wind parks biomass at the end of 2010
Electricity Production/Cost – Comparison collector PV-Wind Parks-Biomass (at the end of 2010)

Estimation for Electricity Consumption by technology (end 2010)

Electricity Production RES-E (2010)

Cost Distribution per kWh Produced

(PV cost was normalized to €0.35/kWh)

Res development program1
RES Development Program collector

5.8% electricity production from RES

RES Development Plan Contribution in Electricity Consumption

RES Contribution in Final Consumption

9% RES contribution in final energy consumption

(aviation capping mechanism was taken account)

Elimination of the administrative barriers
Elimination of the Administrative Barriers collector

  • 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

Barriers to the development of res
Barriers to the Development of RES collector

Barriers related to permission procedures

Identification of bottleneck organizations

Barriers related to permission procedures

Knowledge about procedures for the whole licensing chain

Barriers to the development of res1
Barriers to the Development of RES collector

Barriers related to grid issues

Is cost estimates for grid connection provided by transmission operator transparent?

Barriers related to grid issues

Is cost estimates for grid connection provided by transmission operator discriminatory?

Energy saving measures tools
Energy Saving – Measures & Tools collector

  • National Energy Efficiency Action Plan (in conformity with EU Directive on Energy Services)

    • The target (above requirements) consists to 10% by 2016

    • It will be reached by applying cost effective energy efficiency improvement measures and domestic RES

    • Priorities are buildings, transport and industry

  • Buildings:

    • Implementation of the energy performance buildings directive

      • 21.12.2007: Regulations for minimum energy efficiency requirements for new buildings

      • 01. 01.2010: Energy Performance Certification

    • Mandatory installation of Solar water heaters on domestic houses from 1.1.2010

    • Financial support scheme providing grants and subsidies for energy efficiency investments

    • For the tertiary sector grants are given for any technology which satisfies the 10% savings criterion. Emphasis is given to efficient electricity use.

    • CFL lamps: Cyprus Government provides 6 lamps for each household

      • 2007: 300,000 CFL, €580,000

      • 2008: 360,000 CFL, €695,000

      • 2010: 1,070,000 CFL, €1,000,000

Energy saving measures tools1
Energy Saving – Measures & Tools collector

  • Industry:

    • The main tool used for energy savings is the governmental financial support scheme. Emphasis is given to heat recovery, efficient use of electricity, CHP.

  • Transformation sector:

    • Introduction of natural gas and CCGT technology

  • Transport:

    • Governmental support schemes for purchasing of hybrid, electric, FFV, low emissions vehicles (120g CO2/km)

    • School bus

  • Public Sector:

    • Awareness raising and education of civil servants on simple measures and behaviour to save energy in the workplace

  • Energy Label:

    • Energy labelling for appliances is operating successfully in Cyprus and market surveillance authorities provide data that a minimum 80% are labelled in shops

Financing tool for the support of energy saving

Energy Saving collector


Special Fund





Financing Tool for the Support of Energy Saving

  • Provides financial incentives (capital aid) in the promotion of Energy Saving


  • Grant subsidy 15-35%

    (depends on the type of subsidy, natural or legal entity)

  • Main Categories

    • Energy conservation:

    • Heat insulation

    • Hybrid, electric, dual propulsion, low emissions vehicle

    • Cogeneration of Electricity and Heating/Cooling

Grant scheme for energy saving
Grant Scheme for Energy Saving collector

  • Total number of submitted applications (2004-Nov. 2009): 27,464

  • Total amount granted (2004-Nov. 2009): 27.56 million Euros

    (~ 9.46 million Euros have been allocated within the year 2009)

Submitted Applications

Allocated Funds (mil. €)

Raising public awareness
Raising Public Awareness collector

  • Save Energy exhibitions

  • Public hearings and RES info days

  • School presentations to promote “energy awareness”

Exploiting the opportunities offered by the cdm european emissions trading scheme or others
Exploiting the Opportunities Offered by the CDM & European Emissions Trading Scheme (or others)

  • Preparation of a government strategy and action plan for exploiting the opportunities offered by CDM and EU-ETS for the period 2008-2012 and 2013-2020

  • Up to date two wind farms and two biogas installations have been registered with the CDM mechanism and four other projects are under validation

  • All projects are in the Renewable Energy Sector

How long is the road to copenhagen
How long is “The Road to Copenhagen”? Emissions Trading Scheme (or others)

  • Kyoto Protocol: Much Action – Little Effect

  • New Approach is Needed:

    • A carbon tax instead of emission trading mechanism

    • A carbon tax based on production of carbon and not on consumption

    • A policy framework promoting clean technologies with economically viable and long-term solutions

    • R&D for new energy and other environment technologies

    • Changing attitude

November 27 2009 goethe centre nicosia

Thank you for your attention! Emissions Trading Scheme (or others)