Minister outlines energy sector developments at Limassol conference

Minister of Energy, Commerce, and Industry George Papastasiou on Friday, while speaking at the Limassol Economic Forum, highlighted the significant issues facing the energy sector in Cyprus, considering both the ongoing energy crisis in Europe and global developments in the Eastern Mediterranean.

Papastasiou began his speech by expressing his gratitude for the opportunity to address the forum and present the major issues of the energy sector in Cyprus to the participants, within the context of broader developments in the Eastern Mediterranean and internationally.

He emphasised the government’s commitment to accelerating the transformation of Cyprus’ energy sector, citing the energy crisis gripping Europe and the European Union’s climate neutrality goals by 2050.

“From the moment our government took office, we recognised the need to expedite the transformation of our energy sector, given both the energy crisis affecting Europe and the European Union’s goals for climate neutrality by 2050,” he said.

Papastasiou elaborated on the intensive efforts to revise Cyprus’ National Energy and Climate Plan in alignment with the ambitious European Union reform packages, “REPowerEU” and “Fit for 55.”

“We have intensified our efforts to revise our National Energy and Climate Plan, which includes policies and actions promoting renewables, energy efficiency, and circular practices,” he said.

He noted that the revised plan had been submitted to the European Commission in July, with comments and feedback expected before finalisation by the end of June 2024.

The minister also said that the plan’s aim is to create a detailed roadmap for transitioning to a competitive low-carbon energy system.

“Our revised plan aims to provide a detailed roadmap for our transition to a competitive low-carbon greenhouse gas emissions energy system,” he said.

He also highlighted significant financial commitments, stating that “a total of 41 per cent of the allocated resources from the National Recovery and Resilience Plan, ‘Cyprus Tomorrow,’ are designated for the green transition”.

Moreover, he mentioned that approximately €590 million had been secured for the programme until 2027, primarily to offer financial incentives to households, businesses, and public entities for energy efficiency and renewable energy investments.

Regarding legislative and regulatory modernisation in the energy sector, Papastasiou pointed out that “we are also working on the necessary modernisation of the legislative and regulatory framework of the energy sector.”

He specifically mentioned the digitisation of processes within the newly established Unified Licensing Authority for Renewable Energy Projects, operated under his ministry’s Business Facilitation Unit.

Addressing the “Photovoltaics for All” programme, the minister said “allow me to make a special reference to the new ‘Photovoltaics for All’ Grants Scheme that we are preparing at the Ministry of Energy”.

He outlined the programme’s goals, emphasising the reduction of electricity costs for households and supporting citizens who lack the initial capital for installing photovoltaic systems. The scheme aims to be operational in the new year.

“The grant for vulnerable consumers is expected to cover up to 100 per cent of the cost for systems up to 5 kilowatts, while those who have the necessary capital will continue to receive a grant of up to €1,500, as with the existing program,” he stated.

He also highlighted that, under the new scheme, consumers without the initial capital would have the opportunity to install photovoltaic systems without upfront costs.

The remaining system cost would be repaid through the electricity bill once net metering is implemented, with an indicative charge of €150 every two months.

Finally, Papastasiou also underscored the importance of strengthening Cyprus’ energy security and ending its energy isolation, referencing the various initiatives that aim to help in this regard.