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Photovoltaic energy 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: photovoltaic energy (PV)
In Cyprus, the policy framework for RES has been recently revised and approved. Three frameworks are defined based on the size of the project and the type of implementing enterprise:

1. Framework for large commercial wind, solar (thermal or PV) or biomass systems: a feed-in tariff system is defined, without any additional subsidy support.
2. Framework for public authorities or private companies that exercise financial activities: different subsidy schemes up to 55% of the project budget are considered combined to specific feed-in tariffs in some cases.
3. Framework for public authorities or private companies/persons that do not exercise financial activities: direct subsidies schemes are considered combined to specific feed-in tariffs.

According to Framework 1 for solar PV the feed-in tariff for the period 2009/2010 for grid connected installations up to 20 kW is 36 €cts/kWh and for installations in the range 21-150 kW 34 €cts/kWh.

According to Framework 2 for PV systems, additionally to the subsidy de minimis (40% of the total budget with a cap of €48,000 per plant), a feed-in tariff is defined at 20.5€cts/kWh for a period of 15 years, with an annual cap of €200/kW.

According to Framework 3 for PV systems, two feed-in tariff options for a period of 15 years are offered depending on the level of subsidy:
a. With a subsidy of 55% of the total budget (cap of €65,000 per plant), a feed-in tariff is defined at 22.5 €cts/kWh.
b. With no subsidy, a feed-in tariff is defined at 38.3 €cts/kWh.

Future programme changes expected
No information on future policy.

Sources
Support scheme for energy conservation and the promotion of renewable energy sources (RES) for individuals and Organizations, that they exercise economic activity (draft translation in English, 2008), Cyprus Institute of Energy, http://www.cie.org.cy (sourced August 2008)

Support scheme for energy conservation and the promotion of renewable energy sources (RES) for individuals and Organizations, to the extent that they do not exercise Economic activity (draft translation in English, 2008), Cyprus Institute of Energy, http://www.cie.org.cy (sourced August 2008)

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

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

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (Entry into force on June 25th, 2009), download from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0028:EN:NOT

Renewable energy policy; country profiles (Re-Shaping). Based on information available in October 2009, http://www.reshaping-res-policy.eu, 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 (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)

Cyprus Insitute of Energy Website, http://www.cie.org.cy/indexEN.html#home (sourced March 2011) 

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


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