Transcript The Business Environment in Cyprus

Renewable Energy & Energy Conservation
The Business Environment in Cyprus
Solon Kassinis
Director of Energy Service
Ministry of Commerce, Industry & Tourism
Republic of Cyprus
Nicosia – May 27, 2010
Cyprus Energy System: Main Indicators
Primary Energy Consumption – 2009
RES
3.4%
Solid
Fuels
0.5%
Oil
Products
96.1%
2009
Primary Energy Consumption: 2 803ktoe
Final Energy Consumption: 1 924ktoe
Gross Final Energy Consumption: 1 964ktoe
RES Production: 95 ktoe
Final Energy Consumption – 2009
Electricity
Solid
Fuels
0.7%
HFO&Diesel
20.2%
RES
4.9%
Oil
Products
73.4%
Final Energy Consumption by Sector – 2009
Commerce
& Services
11%
Agriculture
2%
Household
16%
Industry
15%
Transport
(Aviation)
14%
Transport
(Road)
39%
Final Energy Consumption
Final Electricity Consumption
(2.2% mean annual increase)
(6.8% mean annual increase)
2,025
4,800
1,950
4,550
1,875
4,300
GWhr
ktoe
Cyprus Energy System: Main Indicators
1,800
1,725
3,800
3,550
1,650
3,300
1,575
3,050
1,500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Cost of Oil Products Import
1500
1350
1200
1050
Mill.
Euros
4,050
900
750
600
450
300
150
0
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
2,800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Cost of Oil Products Import – 2009:
•€970 million
•17% of the country's total imports
•6.3% of the country's GDP
Cyprus Energy Policy
Main Objectives
 Security of energy supply
 Contribution of the energy sector to the productivity and
competitiveness of the national economy
 Environmental protection and sustainable development
Clean Energy
Cost Effective
Energy
Adequate
Energy
Secure Energy
Cyprus Energy Policy – RES & Energy Saving
Main Priorities










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”
RES Potential
Wind Energy
• The average wind speed in some areas, which is
suitable for the installation of wind farms, is about
5-6 m/s




Limitations
Limited potential for wind energy generation
Land planning problems (Cyprus, developed
tourism country)
Oppositions of local communities
Conflict with real estate (touristic) development
RES Potential
Solar Energy
• 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)
Overall annual solar irradiation
received by a solar collector
RES Potential
Solar Energy
• More that 3.5MW of PV systems have
been installed
• Per capita, Cyprus ranks the 6th highest
in the EU with 2Wp per head of
population




Limitations
Low efficiency
High capital investment (very high initial cost)
Need very high subsidies in order to be viable
R&D
RES Potential
Biomass
• Significant amount of agricultural residues
• Significant biogas potential (exploitation of agricultural
residues, waste disposal plants, exploitation of landfill gas
from the waste disposal plants)
Biofuels




Limitations/Obstacles
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 in the Gross Final Energy Consumption
Indicative Trajectory
14.0
12.0
13.0
9.5
10.0
% 8.0
6.0
4.0
Biofuels
Solar
: 2.96 %
Biomass
: 0.95 %
Biofuels
: 0.77 %
Electricity
(PV, biomass) : 0.13 %
Biomass
Solar
2019/20
2017/18
2015/16
2013/14
2009
4.9 5.9
2011/12
Electricity
(PV &
Biogass)
4.4 4.8
2008
3.4
2007
2006
2005
2004
2003
2002
2001
2.6 2.7
2000
2.0
0.0
7.4
RES Evolution
Solar Thermal – Energy Production
60
55
50
45
40
35
ktoe 30
25
20
15
10
5
0
58ktoe
Electricity Production- PV Systems
On Grid
Off Grid
Total
4.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Installed PV Systems
On Grid
Off Grid
(Cumulative)
4
3.5
3
2.5
GWh/yr
2
Total
3500
3.5MW
3000
1.5
1
0.5
0
2005
2500
2000
kW
1500
1000
500
0
2005
2006
2007
2008
2009
2006
2007
2008
2009
RES Evolution
Biomass – Energy Production
20
18.6ktoe
18
16
14
12
Electricity Production- Biogas
ktoe 10
8
On Grid
6
4
Off Grid
Total
25
2
20
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
15
Electricity Production- Biogas (Cumulative)
GWh/yr
10
On Grid
Off Grid
Total
4.4MW
4500
4000
5
0
3500
2007
2008
2009
3000
kW
2500
2 new biogas plants (total capacity of 1.25MW)
are expected to operate in the 2010
2000
1500
1000
500
0
2007
2008
2009
RES Evolution
Biofuels
• One company has been registered for the production of biofuels (7,460
tn for the year 2008)
• 300 tn/yr for own use
• 2% (in the energy content) annual mandatory substitution of transport
fuels with biofuels
• Substitution of diesel up to 7% v/v with biodiesel
Wind Energy
• First Wind Farm 82MW
Online: end 2010
• Second Wind Park 31.5MW
Online: end 2011
• 20MW wind farm under evaluation
RES – Targets
Biofuels in overall transport Electricity production from
petrol and diesel productionRES (indicative target)
(indicative target)
RES contribution to the gross final energy
consumption (compulsory target)
RES contribution to the gross
final energy consumption
(indicative target)
RES share in the
overall transport
petrol and diesel
consumption
(compulsory target)
14.0
12.0
10.0
13
% 8.0
10
6.0
Current
Status
4.0
6
4.8
2.0
2
0.64
3.8 2.5
0.0
2009
2010
2020
Development of RES – Measures & Tools
 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
• A Special Fund has been created aiming at support of RES and Energy
Saving investments in Cyprus. The revenues of this fund are coming
from the consumers paying an additional tax
• 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
2% of Gross Income
(wind, biomass, CSP)
RES Power Producers
Local Authorities
Special Fund
subsidy (feed in tariff)
Electricity
levy
EAC
Grid
Electricity
Consumers
Electricity
Cash Flow
Grant Scheme for RES
• Total number of submitted applications (2004-2009): 20,559
• Total amount granted (2004-2009): 20.5 million Euros
Allocated Funds (mil. €)
Submitted Applications
9000
9
7846
7.47
8
7500
7.80
7
5512
6000
6
5
3.68
3899
4500
4
3000
3
1995
2
1500
783
524
1
0.56
1.05
0
0
2004
2005
2006
2007
2008
2009
2005
2006
2007
2008
2009
RES Development
Solar Systems Laboratory
Experimental testing of:
• solar collectors,
• solar water heating systems
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 Roadmap 2009-2013
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
Wind
PV
CSP
Biomass
Biogas
250
200
Wind
: 165MW
Solar Thermal: 25MW
PV
: 14MW
Biomass
: 4MW
Biogas
: 3MW
-----------------------------Total
: 211MW
150
MW
100
50
0
2010
2011
2012
2013
2014
2015
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 Saving – Measures & Tools
• National Energy Efficiency Action Plan (in conformity with EU Directive
on Energy Services)
 The target (above requirements) consists to 10% by 2016
 Priorities are buildings, transport and industry
• Buildings:
 Implementation of the energy performance buildings directive
 Mandatory installation of Solar water heaters on domestic houses
 Financial support scheme providing grants and subsidies for energy
efficiency investments
 CFL lamps: Cyprus Government provides 6 lamps for each household
• 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
Energy Saving – Measures & Tools
• 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
• Financial incentives (capital aid) in the promotion of Energy Saving
Electricity
Consumers
Special Fund
levy
grant
Energy Saving
Investments
Grant Scheme for Energy Saving
• Total number of submitted applications (2004-2009): 29,813
• Total amount granted (2004-2009): 29.8 million Euros
Allocated Funds (mil. €)
Submitted Applications
12000
10384
10500
9000
7500
6524
6258
5736
6000
4500
3000
1500
742
169
0
2004
2005
2006
2007
2008
2009
13
12
11
10
9
8
7
6
5
4
3
2
1
0
11.70
10.43
6.31
0.31
2005
1.04
2006
2007
2008
2009
RES & Energy Conservation Business Environment
Cyprus offers an attractive, stable, secure and
transparent business environment for investments in
the field of renewable energy sources and energy
saving
Thank you for your attention!