It gives me great pleasure to address the 13th "Nicosia Economic Congress", thanking IMH for the kind invitation and, of course, the opportunity to present before you the priorities of the new Government in the key energy sector.
We have all witnessed the serious social and economic problems that have been created in recent years, first by the pandemic and then by the war in Ukraine. The unprecedented energy crisis, which has led the EU to urgently seek ways to diversify its energy sources and routes, as well as inflationary pressures on global economies in general, oblige us to redefine our energy strategy, with the primary objective of reducing energy costs for all consumers, households and businesses. This will enable us to actively support the competitiveness of our country and thus the sustainable and healthy development of our economy.
The main pillars of the policy we are implementing are also the strengthening of Cyprus' security of energy supply, the removal of its energy isolation, as well as the operation of the competitive electricity market and the internal market for natural gas.
The main pillars of the policy we are implementing are also the strengthening of Cyprus' security of energy supply, the removal of its energy isolation, as well as the operation of the competitive electricity market and the internal market for natural gas. At the same time, we are intensifying our efforts for a rapid transition to a green and circular economy, on the basis of the Green Deal and the EU's "Fit for 55" policy, which envisages a 55% reduction in greenhouse gas emissions by 2030.
Ladies and Gentlemen,
It is our conviction, and this is the direction we are working towards, that in order to have a substantial reduction in the cost of the energy we produce and consume in Cyprus, we must now turn our attention to securing quantities of natural gas, the bridge fuel for the green transition, mainly from the Eastern Mediterranean region. Since 2009, some 78 trillion cubic feet of natural gas have been discovered in the Eastern Mediterranean, with 21 of these estimated to be currently available for export.
Cyprus had its first natural gas discovery in its EEZ in December 2011. Since then, quantities totaling between 12 and 15 trillion cubic feet have been discovered in the Cypriot EEZ. It is not possible, therefore, that in 2023 we are still discussing exploitation options, ignoring the obvious: that part of our reserves will definitely have to be transferred to Cyprus for power generation purposes.
To finalise our new strategy, we have invited to Cyprus, at the end of this month, the companies active in the entire gas chain in the region. Our aim is to hold a very specialised workshop where all stakeholders - technocrats, State advisors, experts and professionals in the sector - will discuss the Government's plans in order to find concrete, viable solutions.
Among these, apart from the solution of importing LNG that will arrive in Vasilikos for regasification at the terminal under construction, we would like to see natural gas coming to Cyprus in gaseous form, via pipeline. As long as companies and investors can take advantage of the synergies in existing and planned infrastructures offered in the Eastern Mediterranean due to the proximity of gas discoveries, this will be the most advantageous solution for our country, by which we will secure natural gas at the lowest prices. This gas can be channelled to the domestic market, initially for power generation, while quantities can, at the same time, be liquefied in a liquefaction station (FLNG or Modular technology) to be built in Vasilikos, for export by ship to the markets. Cyprus' location in the heart of the Eastern Mediterranean and very close to the Suez Canal, is ideally suited for this purpose.
Dear Friends,
As I mentioned earlier, Cyprus is currently intensifying its efforts for the green transition, including by proceeding with a revision of our National Energy and Climate Plan, in order to make our targets even more ambitious, in the context of the European "Fit for 55" policy. Among the major reforms we are promoting in the Ministry of Energy are.
- Securing European funds of €35 million for the installation of smart meters and €100 million for investments in the electricity grid to support the green transition.
- The establishment of a one-stop-centre for project facilitation under the Business Facilitation Unit, which will operate through an online platform that will soon be ready.
- The practical support of the extremely important project of electrical interconnection between Cyprus, Greece and Israel, which will remove the energy isolation of our country and create the conditions for an even greater penetration of Renewable Energy Sources.
At the end of the day, ladies and gentlemen, our primary goal, I repeat, is to support our economy and our fellow citizens by achieving lower-cost and more environmentally friendly electricity production. This requires a combination of renewable energy development, energy-saving measures and the use of natural gas, which, in addition to reducing the pollutants produced each year, if we manage to get it from sources in the Eastern Mediterranean, will also be a significantly cheaper fuel.
I wish you every success in the proceedings of the 13th "Nicosia Economic Congress" and thank you for your attention.
(GA)
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