The European Bank for Reconstruction and Development (EBRD) is providing €10 million in debt financing for the construction, development, and operation of five solar photovoltaic parks with a total capacity of 11.9MWp in Cyprus, it was announced on Friday.
The parks are located in the areas of Frenaros, Nisou, Dhali, Paliometocho, and Malounta and are among the first solar photovoltaic projects of this scale in Cyprus.
The projects are being implemented by consortia of local and international investors and will benefit from EBRD financing.
“We are proud to be part of the new era of sustainable power generation in Cyprus. It took a considerable effort on our part to reach this point, but we are just at the beginning,” Photis Savvides, Director of CYPV Energy Ltd, one of the companies developing the plants, said. “I would like to thank the EBRD for the commitment and cooperation they demonstrated in this project.”
Addressing global challenges is one of the key strategic priorities for the EBRD and the investment will strengthen efforts in Cyprus to reduce climate change emissions and dependency on important fuels.
Libor Krkoska, Head of the Cyprus EBRD office said: “In line with our strategy for Cyprus, it is with great satisfaction that we have been able to support investments in the renewable energy sector in the country. We are pleased to see renewable energy projects contributing towards Cyprus’s 2020 target for power generation from sustainable sources.”
The EBRD’s Head of Power and Energy Utilities said the agreements will allow Cyprus to further utilise its huge renewable energy potential.
“Over the years supporting sustainable energy with finance and advice has become a core activity for the EBRD and we are proud to apply our expertise and experience now also on this sun-kissed island,” Nandita Parshad said.
The EBRD started investing in Cyprus during the fourth quarter of 2014 for a temporary period envisaged to last until 2020.
The Bank is focusing on investments in the financial sector, supporting privatisations and private concessions, and providing finance to projects of individual private companies.
The goal is to support the recovery of the country’s economy following a deep financial crisis.
The EBRD’s strategic plan for the period 2016-18 has three priorities: strengthening economic resilience, addressing global challenges and supporting regional integration.