Solid
biomass 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 : solid
biomass
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 €ct/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 investment subsidy
for biomass utilization in central systems for heating
and cooling is 55% on the eligible costs up to a maximum
amount of EUR 19,000.
Individuals and businesses with the scope of
profit
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 EUR 680,000 per unit.
- For De minimis aid:
40% on the eligible costs up to EUR 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 EUR 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 €ct/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.
No grant is considered for this
category (only the energy produced is subsidized for the first 20 years of
operation).
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 (accessed 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 (accessed 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 (accessed February 2009)
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
(accessed 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: November 2011
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 TREN '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
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