Insight into Renewable Energy Sources in Cyprus
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CEE Renewable Energy 2009
Insight into Renewable Energy Sources in Cyprus
Solon Kassinis
Director of the Energy Service
Chairman of the Cyprus Institute of Energy
Ministry of Commerce, Industry & Tourism
Republic of Cyprus
Energy System of Cyprus – Main Challenges
Isolated Energy
System
High
Dependence on
Imported Fossil
Fuels
Environmental
Constrains
Cyprus Energy
System
Marginal
Operation of
Electricity
System on Peak
Demand
Seasonal
Fluctuations in
Energy Demand
ENERGY SERVICE - MCIT
High Cost of
Imported Primary
Energy
High Increase
Rate of Energy
Demand
REPUBLIC OF CYPRUS
Isolated Energy System
No oil or gas pipelines interconnections
No existence of electricity interconnections with other countries
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
High Energy Dependence
Energy Balance – 2007
Primary Energy Consumption: 2.680 ktoe
{
Oil Products: 2.580 ktoe
{
RES: 64,5 ktoe
{
Solid Fuels: 36,2 ktoe
Final Energy Consumption: 1.900 ktoe
Transport and building are the largest energy consuming sectors
Primary Energy Consumption
RES
2.4%
Solid Fuels
1.4%
Oil Products
96.2%
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
High Cost of Energy Supply
In 2007, the energy imports cost raised to 1,05 billion euros, which corresponds
to 16,7% of the country's total imports
mill. euros
Cost of Oil Products Import
1050
975
900
825
750
675
600
525
450
375
300
225
150
1990 1991 1992 1993 1994
ENERGY SERVICE - MCIT
1995 1996 1997 1998 1999 2000 2001 2002
REPUBLIC OF CYPRUS
2003 2004 2005 2006 2007
High Increase Rate of Energy Demand
GWhr
6,2% mean annual increase in electricity consumption for the period 2000-2007
2,1% mean annual increase in final consumption for the period 2000-2007
4500
2000
4300
1900
4100
1800
3900
1700
3700
1600
3500
1500
3300
1400
3100
1300
2900
1200
2700
1100
2500
2000
2001
2002
2003
Final Electricity Consumption
ENERGY SERVICE - MCIT
2004
2005
2006
1000
2007
Final Energy Consumption
REPUBLIC OF CYPRUS
TOE
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
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Cyprus Energy Policy – RES and 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
Growth “energy awareness”
Limit bureaucracy and simplify all licensing procedures
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Conditions for the Development of RES
Support for Innovative Energy Technologies
{
Establishment of the Applied Energy Centre (1986):
Focal point for all renewable effort in the country
{
Establishment of the Cyprus Institute of Energy (2000):
Development and promotion of renewable energy sources and
dissemination of financially viable energy technologies in Cyprus
Existence of an Attractive Investment Framework
{
Action Plan for the promotion of renewable energy sources for the period
2002-2010:
Financial incentives in the form of government grants and subsidies for the
promotion of investments in the field of energy saving and energy
production from renewable energy sources
{
A new Action Plan for the years 2009-2013:
Includes large-scale RES investments for electricity generation
Public Attitude
{
People act favorably to any new development that adds value and improves
their living standards
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Applied Energy Centre
Experimental testing of:
solar collectors (100-120 per year) and,
solar water heating systems (30-40 per year)
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Legislative Framework for RES and 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 of this fund are coming from the
consumers paying an additional tax of 0,22 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
Eco Design Directive
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
National Targets for RES and Energy Saving
6% indicative target for the electricity production from RES by 2010
2,5% indicative target for biofuels in overall transport petrol and diesel
production by 2010
10% (above requirements) indicative target for energy saving by 2016
(Directive on Energy end-use efficiency and energy services)
13% compulsory target for RES contribution to the final energy consumption
by 2020
10% compulsory target of Biofuels share in the overall transport petrol and
diesel consumption by 2020
European Energy Policy
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REPUBLIC OF CYPRUS
EU Energy Targets
A reduction of at least 20% in greenhouse gases (GHG) by 2020
Save 20% of the total primary energy consumption by 2020
Increase the level of RES in the EU´s final energy consumption to 20% by
2020
Increase the share of biofuels in overall EU transport petrol and diesel
consumption to 10% by 2020
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
EU Energy Policy
Does the current EU Energy Policy answer to:
Security of supply?
GHG emissions?
Economic and social cohesion?
Current EU Energy Policy was designed when:
Oil prices $100-147/barrel
EU annual economic growth 2-4%
Now
Oil prices $45/barrel
World economic recession
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Need for EU to Reconsider the Energy Targets
RES
{
Major conventional back-up
needed
{
Expensive
{
Current RES technologies Æ no
storage Æ reduce security of
supply
Energy Saving
{
Driven by energy prices
GHG emissions
{
CDM failed
Biofuels
{
Dependence from Brazil, France
etc
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
More Natural Gas
More Coal
More Nuclear Energy
Need for EU to Reconsider the Energy Targets
What ought to happen:
R&D for large scale, base load technologies
Carbon Storage Capture (CCS) efforts
New RES technologies with storage
New transmission systems
Large scale demand management
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
RES Potential in Cyprus – Wind Energy
The average wind speed in some areas, which is suitable for the installation of
wind farms, is about 5-6 m/s
The wind farm investors should:
{
Obtain construction and operation permission by CERA
{
Grant connection to the grid license by TSO
{
Meet the limitations as described in the Ministerial Order No.2 of 2006,
which was issued by the Minister of Interior
{
Submit application to the special RES Committee for getting subsidy based
on the produced electricity from the wind farm
The special RES fund has pre-approved the installation wind farms totaling to
169MW
CERA has given approval to a total of 441MW
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Wind Energy - Obstacles
Limited potential for wind energy generation
Land planning problems (Cyprus, developed tourism country)
Oppositions of local communities – Problems with acceptance of people –
Conflict with real estate (touristic) development
Limitation on account of system stability
Annual mean wind velocity
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
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)
More that 1,6MW of PV systems have been
installed
Obstacles:
{
Low efficiency
{
High capital investment (very high initial
cost)
{
Need very high subsidies in order to be
viable
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Overall annual solar irradiation
received by a solar collector
Biomass & Biogas Exploitation
Significant amount of agricultural residues
Significant biogas potential (exploitation of agricultural residues, waste
disposal plants, exploitation of landfill gas from the waste disposal plants)
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Biofuels – Obstacles & Problems
Limited suitable agricultural land
Water Scarcity
High dependence on imports to satisfy the targets (indicative and
mandatory targets)
High cost of imports
The use of Biofuels produced by genetically modified plants is prohibited
Various reports have shown the negative effect of Biofuels to automotive
engines and suggest that Biofuels can only be used in quantities more
than 5% v/v, if the engine is appropriately modified
A study which was conducted by the Cyprus Institute of Energy shown
that the cost of cultivation energy crops in Cyprus is prohibited (limited
irrigable land and water shortages)
Approximately 0,5% of Biofuels can be produced from used cooking oil
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Measures & Policies for the Encouragement of Use of RES
The allocation of an explicit RES development program
Financing tools for the support and implementation of RES investments
The elimination of the administrative barriers that prevent the development of
RES
Measures of raising public awareness
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
RES Development Program
A new Action Plan for the years 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
Solar Thermal
PV
Biomass
Biogas
250
200
Wind
: 165MW
Solar Thermal: 25MW
PV
: 14MW
Biomass
: 4MW
Biogas
: 3MW
-----------------------------Total
: 211MW
MW
150
100
50
0
2009
ENERGY SERVICE - MCIT
2010
2011
2012
2013
2014
REPUBLIC OF CYPRUS
2015
RES Projects Co-Funded by EU
Concentrated Solar Power station
Installation of PV systems in Schools/Governmental Buildings/Army Camps
Solar Heating/Cooling Systems in Governmental Buildings
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Financing Tools for the Support of RES Investments
Support Grant Schemes for RES: Financial incentives for the materialization of
investments for the promotion of renewable energy sources technologies
{
Implementation of a New Grant Scheme for large scale RES developments
in electricity generation
{
Continuation of the existing Grant Scheme for individuals and organizations
Electricity Authority of Cyprus (EAC) is obliged to buy in priority the RES
electricity produced by independent producers at a fixed price based on its
marginal power production cost
RES
Power Producers
Special Fund
EAC
Grid
Cash Flow
Electricity Flow
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Consumers
Fuels Import
CO2 rights
Grant Scheme for RES & Energy Conservation
Incentives
Grant subsidy (15 – 55% of the capital investment)
Feed in tariff policy
{
{
{
{
{
Wind systems: €0,166/kWh
Solar Thermal: €0,26/kWh
PV systems (21-150MW): €0,34/kWh
Biomass exploitation systems: €0,135/kWh
Biogas exploitation systems: €0,1145/kWh
Main Categories
Energy conservation:
{
Heat insulation
{
Geothermal heat pump for heating and cooling
{
Hybrid, electric, dual propulsion, low emissions vehicle
RES:
{
Wind energy systems
{
Solar thermal systems
{
Photovoltaic systems
{
Biomass and biogas utilization
Cogeneration of Electricity and Heating/Cooling
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Grant Scheme for RES & Energy Conservation
Submitted Applications
Amount Granted
20000
24
18172
18000
18.61
16000
14000
12036
12000
9635
10000
18
16
12
10
10.58
8
6
6000
4000
2737
952
4
2
2.16
0.88
0
0
2004
ENERGY SERVICE - MCIT
20
14
8000
2000
22
2005
2006
REPUBLIC OF CYPRUS
2007
2008
mil. Euros
Total number of submitted applications (2004-2008): 43.532
Total amount granted (2004-2008): 32,23 million Euros
Applications
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
Measures of raising public awareness
Save Energy exhibitions
Public hearings and RES info days
School presentations to promote “energy awareness”
Introduction of awards for the households and industries with the best record
in energy saving
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
European Programmes
6th Framework Programme”
“LIFE”
“INTERREG”
“Intelligent Energy for Europe
1. Evaluation and Monitoring of Energy Efficiency in the New E.U.M.
Countries and the E.U.25, related with energy efficiency indicators.
(IEE)
2. SOLCO (IEE):
Removal of non-technological barriers to Solar Cooling technology
across
southern European islands
3. PromoScene (IEE)
Promoting the use of Structural Funds and Cohesion Funds for energy
investments in New Member States and candidate countries.
4. Aqua-RET (Leonardo da Vinci)
Aquatic Renewable Energy Technologies
5. SOLARTHERM (FP6)
Promotion of Solar Hot Water, Heating and Cooling Systems for
Complex
Buildings in the Mediterranean Partner Countries
6. Concerted Action for the energy performance of Buildings, (IEE,
SAVE)
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
International Recognitions
Cyprus is the world leader in solar
water heating with 90% of households,
and 53% of hotels having installed solar
water heaters. According to the EU
study, “Sun in Action”, Cyprus has the
highest installed solar collector per
capita with almost 1m² of solar collector
per person
Cyprus has been chosen by IEA
(International Energy Agency) and
WREN (World Renewable Energy
Network) to be winner of “World
Renewable Energy Congress Trophy”
(2006-2008)
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
Thank you for the attention !
ENERGY SERVICE - MCIT
REPUBLIC OF CYPRUS
