If gas volumes are significant, could the construction of a terminal in Cyprus be an option, or has the original plan been scrapped for good?
The construction of a liquefied natural gas terminal in Cyprus, as we have said before, depends on available volumes and the viability of the project. In addition, other parameters should be taken into account, such as for example the volatile environment in the energy markets, the energy transition, and how such a project fits into the energy planning of our country. If the quantities are available and the project is viable, then this option will also be considered in cooperation with the licensees, but it is considered less likely than transporting the gas to Egypt.
Regarding the LNG import infrastructure development project in Vasilikos, how is the process progressing after the conclusion on the amount of compensation requested by the consortium? Did it "lock in" at 25 million right?
With the conclusion of the consultations, which are still ongoing, all the newly established procedures will be followed to submit a claim to the Central Claims and Claims Commission. In parallel, the Consortium is proceeding with the works as stipulated in the relevant Contract signed.
Is the delay experienced solely due to issues created as a result of the pandemic or were there other issues?[/B]
The consortium responsible for the construction of the infrastructure has indicated that the delays experienced are mainly related to the global impact of the Covid-19 pandemic. To the restrictions placed on traffic, the suspension of site operations, as well as impacts related to the entire supply chain and the rising cost of materials.
One of the projects towards the green transition and decoupling from conventional fuels is the EuroAsia Interconnector electrical interconnection cable which will connect Cyprus with Greece and Israel. Is there anything new?
It is indeed one of the most important projects we are promoting for the transition to the green economy, fully aligned with both the policies we are implementing for environmental protection and the EU policies for full interconnection between Member States, for reasons of security of energy supply and the proper functioning of the single market. I note, for example, that the studies carried out in the framework of our National Energy and Climate Plan show that electricity interconnection, combined with the use of storage systems, can lead to a penetration of renewable energy sources in Cyprus' energy mix of more than 50% by 2030. As I mentioned above, the project just received funding through the Connecting Europe Facility at the end of January. In particular, the Implementing Entity has received approval for a grant of €657 million, the securing of which will enable construction work to start on the Cyprus-Crete leg, whose total cost is estimated at €1.575 billion. With the approval for sponsorship, a negotiation process of a few months between the Implementing Entity and the European Commission now begins, which is expected to lead to the signing of the Sponsorship Agreement between the two parties in the summer of 2022. Construction work in Cyprus is expected to start around the end of 2022.
The economic pressure caused by the pandemic brings back to the EU issues that were more or less considered closed, such as the request of some countries to switch to nuclear power due to low costs. But at the same time there is a debate about the future of hydrocarbons. Some argue that it is now an outdated form of energy. Do we take it for granted that PV will remain an option for the EU in the coming years, until the full transition to green energy?
Climate change is a huge challenge at global level, which has made the need for coordinated and decisive action for a full transition to green energy a matter of urgency. Under the Treaty on the Functioning of the EU, each Member State has the right to decide how to manage and exploit its energy resources and to choose between different energy sources to determine its energy mix. The issue of nuclear energy has never been closed in the EU. It is just that some Member States, following the accident at the Fukushima plant in Japan, took the decision to phase out their nuclear power plants and switch to renewables only, while other Member States, in an effort to contain energy prices, turned back to nuclear energy. What has made nuclear power gain momentum in recent years is the zero carbon emissions it produces, the development of new 4th generation nuclear power technologies, and the fact that, despite the high initial capital costs required to build a nuclear power plant, the energy produced is very cheap. Of course, the biggest problem of nuclear energy is and remains the management of nuclear waste. At the Ministry of Energy, in cooperation with the relevant Ministries and all stakeholders, we are moving forward in 2022 by setting ambitious targets in line with the European Commission's "Fit for 55" strategy, aiming for climate neutrality by 2050. With the contribution of renewables, we are intensifying our efforts for our energy transition to green energy, in which, however, natural gas should remain as a transitional fuel. At European level, it appears that natural gas will remain an option for the coming years. This is also supported through the recent adoption of the supplementary delegated act to the Classification Regulation, where certain gas and nuclear investments are now allowed to be designated as 'green investments', in order to stimulate capital investment in the sectors of the economy that are needed to accelerate the energy transition and achieve climate neutrality.
Since 1 January you have chaired the ministerial meeting of the East Mediterranean Gas Forum (EMGF) and made it a priority to promote policies to make our region a leader in the green energy transition. How is this ambitious goal being achieved?
In the context of the EMGF's objective of responsible exploitation of offshore discoveries in the Eastern Mediterranean, a key priority of the Cyprus Presidency is to promote policies and actions, through the Forum, that will help our region become a leader in the green energy transition. During the 17th Session of the EMGF Executive Council held recently in Egypt, Cyprus proposed, as EMGF Chair for 2022, and it was unanimously accepted by the members of the Organisation, the creation of technical teams with the participation of companies to carry out studies related to the green energy transition. These actions relate in particular to regional carbon storage through the identification of optimal CO2 transport routes and suitable storage sites, renewable electricity supply and alternative clean fuels such as blue hydrogen and blue ammonia.
There was a lot of discussion on EastMed[/B] In the end the [/B]project is still alive, at least on a technocratic level on the part of the EU?
This is undoubtedly a complex project, difficult both economically and technically, and for it to be viable it must be ensured that the required quantities of gas are available in the Southeast Mediterranean region. One of the reasons why it was included in the list of EU Projects of Common Interest is precisely because it promotes the EU's policy of decoupling its energy security from specific producer countries and routes, providing an alternative for supplying Europe with gas from the South-Eastern Mediterranean. The role of the European Union is very important, as so far the project has received €36.5 million in funding to carry out the techno-economic studies needed to see whether it is feasible and economically viable. The studies are expected to be completed by the end of 2022 and then it will become clear whether the project is viable and therefore whether or not it can go ahead and be implemented.
The transition to a green and circular economy is the big gamble. What is the contribution of renewables to energy consumption and what are the targets for the future?
Cyprus has managed not only to meet but also to exceed its energy targets for 2020, which were our country's commitments to the EU. Despite the contrary impressions attempted to be created publicly, we have achieved a contribution of RES in final energy consumption of 17% instead of 13%, RES in heating and cooling of 38.55% compared to the indicative target of 23.5%, an increase in cumulative end-use energy savings of 132%, and an increase in RES in final energy consumption of 113% compared to 2014. We are currently working intensively to implement new sponsorship plans which will enable us to realise our new targets for 2030. I recall that we are currently in the process of reviewing these targets, in the context of the new ambitious targets set by the European Commission.
One of the ambitious objectives of your ministry is to promote sponsorship schemes for the installation of energy storage systems through Community funds. Is there any news on that? Will there be any notices in the near future?
The Ministry, on 14 October 2021, transmitted through the Office of the State Aid Control Authority of the Republic, to the European Commission's Directorate General for Competition, a proposal for an aid scheme aimed at encouraging electricity generation from electricity storage facilities located "upstream" of the meter and connected to the electricity transmission system. Our request is being examined. On receipt of approval, our Ministry's objective is to proceed immediately with the launch of the Scheme, which will either be funded from Community resources or, failing that, from purely national resources. It should be noted that the legal framework allowing the installation of such facilities has been in force since 7 October 2021, by decision of the RAEC. Regarding the Plan for "downstream" meter systems, projects are being promoted through a National Plan Cyprus Tomorrow, as well as the Fair Transition Fund (under consideration). The budget expected to be allocated for the above Projects, for the period up to 2029, is expected to exceed €80 million.
Which projects for the energy upgrading of businesses, homes and local authorities is your Ministry promoting?
For 2022 we are promoting grant schemes for energy upgrading and renewables in excess of €90 million, giving, as I said before, incentives to citizens, businesses, public services, NGOs, to go ahead with investments that will bring them a direct significant benefit on their monthly electricity bill. The projects are as follows.
[*]Installation of photovoltaic panels and roof insulation, including virtual net metering (RES and EE Fund projects), April-May 2022, €7.3 million.
[*]Installation or replacement of solar water heater, March April 2022, €450 thousand
[*]Photovoltaic system for electric vehicle charging, March April 2022, €1.5 million and energy upgrade of residential buildings, 2nd half 2022, €35 million.
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We believe that with our plans we are giving very important incentives to citizens and businesses to contribute to the green transition of our country, to reduce their energy costs and to contribute to the competitiveness of our country.
Read HERE the first part of Natasha Pilidou's interview with CT:Eimpact on all sectors of the economy from the war.
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