Biogas 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 electricity and heat: biogas
Individuals and non profit organizations
The price of electricity paid by the Electricity Authority of Cyprus (EAC)
for electricity produced from Renewable Energy Sources (RES) will be
determined by the Cyprus Energy Regulatory Authority (CERA) as detailed
in the 2003 Liberalization of Electricity Law. The subsidy (the
difference between the purchase price and the price of electricity paid
by EAC) will be paid by the Special Fund which has been established and
which is funded by a tax imposed on electricity consumption which
amounts to 0.222 €c/KWh. The price of electricity paid by EAC may be
modified due to the decisions taken by the Cyprus Energy Regulatory
Authority (CERA). In the event that the price of electricity paid by
the EAC changes, the subsidy paid by the Special Fund will be modified
accordingly, such that the subsidized purchase price of electricity
produced by RES being exported back to the grid will remain fixed.
Individuals and businesses with the scope of profit
The price of electricity paid by the Electricity Authority of Cyprus (EAC)
for electricity produced from Renewable Energy Sources (RES) will be
determined by the Cyprus Energy Regulatory Authority (CERA) as detailed
in the 2003 Liberalization of Electricity Law. The subsidy (The
difference between the purchase price and the price of electricity paid
by EAC) will be paid by the Special Fund which has been established and
which is funded by a tax imposed on electricity consumption which
amounts to 0.222 €c/KWh. The price of electricity paid by EAC may be
modified due to the decisions taken by the Cyprus Energy Regulatory
Authority (CERA). In the event that the price of electricity paid by
the EAC changes, the subsidy paid by the Special Fund will be modified
accordingly, such that the subsidized purchase price of electricity
produced by RES being exported back to the grid will remain fixed.
The subsidy
per type of investment for biomass utilization for cogeneration of electricity/heating or cooling is:
- For
regional aid: 15%, 25%, or 35% on the eligible budget, according to the
category of the enterprise (large, medium, small). The maximum amount
of grant is €680.000 per unit.
- For De minimis aid: 40% on the eligible costs up to €200.000.
The
financial contribution of the beneficiary must amount to at least 25%
of the eligible costs, either through own funds or through external
financing and does not contain state aid.
Large commercial facilities
The
total purchase price of electricity produced from utilization of
biomass for the first 20 years of operation shall be € 0.1179/kWh (with
an additional premium). The subsidy that will be provided from the
Special Fund for RES will be the result of the difference between the
total purchase price and the price paid by EAC for electricity produced
by RES, as shall be determined by the Cyprus Energy Regulatory
Authority (CERA). It should be noted that in the event that the price
paid for the kWh by the EAC exceeds the total purchase price, the EAC
shall provide the additional amount to the Special Fund for RES. The
total purchase price includes a compensation benefit of 2% on the
annual income (before VAT) which shall be rendered towards communities
in the vicinity of the facilities.
The total purchase price for each
kilowatt hour produced will remain fixed throughput throughout the
duration of the agreement for the provision of the subsidy (first 20
years of operation). The minimal purchase price offered above, shall be
increased with a premium of 1.71 €c/KWh for electricity for cases where
electricity shall be produced from the cogeneration of electricity,
heat and/or cooling, or if the conversion of biomass occurs by
thermo-chemical processes such as gasification, or dry fermentation.
Future
programme changes expected
No information on future policy.
Sources
Aid scheme for energy conservation and
the promotion of renewable energy sources (2009-2013) for individuals and
organizations, that do not exercise economic activity (draft translation in English), Cyprus Ministry of Commerce, Industry and Tourism, http://www.cie.org.cy, February 2009
Aid scheme for energy
conservation and
the promotion of renewable energy sources (2009-2013) for individuals
and legal entities as well as public sector entities that exercise
commercial activity (draft translation in English), Cyprus Ministry of Commerce, Industry and Tourism, http://www.cie.org.cy, February 2009
Grant
scheme for the promotion of electricity production from large
commercial wind farms, solar thermal and photovoltaic systems, the
utilization of biomass (2009-2013), Management Committee of the special
fund for renewable energy sources (RES) and conservation of energy, http://www.cie.org.cy
The National Renewable Energy Action
Plans (NREAPs) are all published on the Transparency Platform on
Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm
(sourced July - December 2010)
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: December 2010
This information can be referenced without permission provided that the
source is mentioned completely and correctly: 'Interactive EurObserv'ER
Database, http://www.eurobserv-er.org (date of last update)'
Suggestions for improvements to the policy description can be sent to EurObserv'ER by e-mail: project@eurobserv-er.org
The EurObserv'ER barometer is a project supported by the European
Commission within the DG ENER 'Intelligent Energy Europe' programme and
by Ademe, the French Environment and Energy management Agency. The
EurObserv'ER Barometer is the result of the investigation and research
work of its authors. The European Commission is not responsible for any
use that may be made of the information contained therein.