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Wind power 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.

Following an explosion at a nearby naval base on July 11 2011, the Vasillikos Power Station suffered heavy damage and an immediate resumption of operations is impossible. As a result, 798MW of fossil fuel-based capacity, representing 52% of the total capacity of the Electricity Authority of Cyprus was lost. It is anticipated that prolonged power cuts are necessary, as long as the Vasillikos power station has not been repaired. The economic damage is estimated as being in the range of 1 – 3 billion Euro or as much as 20% of GDP. This development is expected to have a major impact on Cyprus' economic situation. Cyprus accelerated its solar energy development following the accident.

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 is assumed to be 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: wind power
All renewable electricity generators receive 6.33 eurocent per kWh fed into the grid, paid by the Electricity Authority of Cyprus (EAC). A special fund exists in which income is collected from taxes imposed on electricity consumption, amounting to 0,222 cent per kWh. By the end of 2010, the 82-MWonshore wind farm Oritis was commissioned and by the end of 2011 the 31.5-MW Alexigros wind farm will be commissions. This will bring the installed wind capacity of Cyprus at 113.5 MW.

Commercial players

Small wind power systems, with a generating capacity less than 30 kW receive an investment subsidy of 40% on the eligible costs up to a maximum amount of  EUR 41,007 per unit and a feed in tariff of 6.33 eurocent/kWh. This also applies for wind powered water pumping installation, to a maximum of EUR 17,087  per installation.

Private persons

Small wind power systems, with a generating capacity less than 30 kW receive an investment subsidy of 55% on the eligible costs up to a maximum amount of  EUR 51,259 per unit and a feed in tariff of 6.33 eurocent/kWh. This also applies for wind powered water pumping installation, to a maximum of EUR 25.630  per installation.

For wind energy a feed-in tariff of 16.66 €cents/kWh for a 15-year PPA (Power Purchase Agreement) is applicable. For wind farms and solar thermal power the total installed capacity until 2013 is capped at 165 MW. Furthermore, there is a cap concerning the payments of wind farms with a capacity over 30 kW. If the average electricity produced by one wind farm during a 4-year period is greater than 1750 kWh each year, the producer receive the standing rate only for the electricity which is generated above the 1750 kWh.

Future programme changes expected
Furthermore, no new information is available for the coming years.

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 (accessed 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 

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

Interactive EurObserv’ER Database, http://www.eurobserv-er.org (status 2011)

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, http://ec.europa.eu/energy/renewables/transparency_platform_en.htm

Personal communication with A. Christofides, CEO, Diamond Fog Ltd., Nikcosia, Cyprus (January 2009)

World of Wind Energy: http://www.worldofwindenergy.com/vbnews.php?do=viewarticle&artid=472&title=eac-to-buy-1135-mw-from-cyprus-private-wind-farms

Eclarion, Integration of electricity from renewables to the electricity grid and to the electricity market RES-INTEGRATION – National Report: Cyprus, December 2012,
http://www.eclareon.eu/sites/default/files/cyprus_-_res_integration_national_study_nreap.pdf (accessed January 2012)

Legal sources on renewable energy, 
http://res-legal.de/en/search-for-countries/cyprus/single/land/zypern/instrument/lpres-1/ueberblick/foerderung.html?bmu%5BlastPid%5D=150&bmu%5BlastShow%5D=1&cHash=3ab4d09c328e07ea64bb83195f14576b
 (accessed January 2012)

Windpower Monthly, June 2010,
http://www.windpowermonthly.com/news/1007566/Cyprus-begins-work-second-wind-farm/ (accessed January 2012)
 

Electricity Authority of Cyprus (EAC): 
http://www.eac.com.cy/EN/Pages/Newsletter.aspx (accessed January 2012)

The Wind Power Net, http://www.thewindpower.net/country_en_78_cyprus.php (accessed January 2012)

Climate Policy Tracker: http://www.climatepolicytracker.eu/sites/all/files/Cyprus2011.pdf (accessed January 2012)

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 (accessed December 2010)

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: January 2012


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