Biofuels in Cyprus

General
Cyprus is one of the leading countries in the use and construction of solar water heating systems, with more than 90% of households equipped with solar water heaters. The implementation of development programmes related to the use of energy conservation, technologies, utilization of ingenious RES and the protection of the environment from industrial pollution are key topics in the energy policy. The Action Plan 2002-2010 consist of doubling the contribution of RES to the Cyprus energy mix to 9% in 2010, and increasing the contribution of electricity generated from RES to 6% of the total electricity consumption in 2010. Policies are in place for energy conservation, renewable energy sources and cogeneration of electricity and heating (or cooling). These policies differ for private and commercial players. Special incentives exist for desalination projects using renewables.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Cyprus is 13% (in the year 2005 the share was 2.9%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for Cyprus
The National Renewable Energy Action Plan (NREAP) for Cyprus was submitted in July 2010. The target according to Annex I of Directive 2009/28/EC is 13% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from solar thermal (90 ktoe, 34% of all renewable energy). Second important contribution is expected from solar (renewable electricity) (0.5 TWh or 46 ktoe, 17% of all renewable energy). The third largest contribution is from wind power (0.5 TWh or 43 ktoe, 16% of all renewable energy). Onshore wind power contributes with 0.3 GW and 0.5 TWh in the year 2020. For solar photovoltaic the 2020 contribution is projected to be 0.2 GW (0.3 TWh). For solar thermal the 2020 contribution is projected to be 90 ktoe. The two most important biofuels are projected to contribute 23 ktoe (biodiesel) and 15 ktoe (bioethanol / bio-ETBE) by 2020. For solid biomass no renewable electricity production is projected, while for biogas its contribution is expected to be 0.1 TWh (12 ktoe). The consumption of renewable heat is expected to amount to 30 ktoe for solid biomass and not available for biogas. 

Renewable transport fuels (biofuel)
The Law (N.66/(I)2005), on the promotion of the use of biofuels or other renewable fuels for transport purposes, was amended by Law N.58/(I)2007 in order to apply tax exemptions on biofuels within the framework of the multi-annual programme. Law N.58/(I)2007 has been in force since 30/5/2007.

The Government is considering using biofuels for the needs of its captive fleet. The measure is aiming to stimulate biofuel market in Cyprus since the Government purchases fuels from the distribution chain of the local oil marketing companies. According to the current two-year contract for supplying the governmental sector with fuels, the fuel supplier has the contractual obligation to handle any volumes of biofuels provided by the Government. The supplier is mandated to store the biofuels, to blend them with conventional fuels and to deliver them to the Government’s installations.

A support scheme In Cyprus offers capital grants on the eligible investment cost for:

• a new Hybrid Vehicle (max. grant € 1,200);

• a new Fuel Flexible Vehicle- FFV/ Dual Propulsion Vehicle (max. grant € 1,200);

• a new Electric Vehicle (max. € 700);

• a new Low Carbon Emission vehicle of <120 g CO₂/km (max. grant € 700);

• biogas production for transport (de minimis / Special Subsidy with a maximum of € 200,000, i.e. maximum 40% of the eligible budget).

Future programme changes expected
No information on future policy is available.

 
Sources

Cyprus Government Web Portal, http://www.cyprus.gov.cy (sourced August 2008)

Interactive EurObserv’ER Database, http://www.eurobserv-er.org (status 2007)

http://ec.europa.eu/energy/res/legislation/biofuels_members_states_en.htm: Forth report to the European Commission for the year 2006 under Article 4(1) of Directive 2003/30/EC of the European Parliament and the Council on the promotion of the use of biofuels or other renewable fuels for transport; prepared by the Energy Services of the Ministry of Commerce, Industry and Tourism of the Republic of Cyprus, February 2008

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

 Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: June 2011