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It is with great pleasure that I am addressing today's Pancyprian Congress of PECC (PEO) - AHK and I would like to thank you for the invitation.
The energy sector, especially electricity, is today considered one of the key factors for all national economies. Cyprus, which remains without any interconnection with the energy networks of the region, depends, as you well know, almost exclusively on imported energy to meet its needs. The only exception is the contribution of Renewable Energy Sources (RES) to the country's gross final consumption, which reached 18.4% in 2021, surpassing the indicative target of 14.8% set in the National Energy and Climate Plan.
The cost of energy imports, therefore, is a significant burden on the Cypriot economy, with problems magnified after the increase in electricity prices as a result of the war in Ukraine. It is for this reason that as a Government we have set among our main priorities the reduction of energy costs for households and businesses, now redefining our energy policy on the basis of purely techno-economic criteria.
In practice, this means that we are implementing in parallel and simultaneously our policies and actions for the development of renewable energy sources and energy saving measures, the process underway at DEFA for the import of liquefied natural gas (LNG), which will be regasified at the ETYFA terminal under construction.
In practice, this means that we are implementing in parallel and simultaneously our policies and actions for the development of renewable energy sources and energy saving measures, the process underway at DEFA for the import of liquefied natural gas (LNG), which will be regasified at the ETYFA terminal under construction. If our new plans come to fruition, our country will secure gas at the low prices of the Eastern Mediterranean, for use in power generation, but also for liquefaction at an onshore liquefaction terminal (modular technology) or a floating plant (FLNG) and export by ship to Europe and international markets.
At the same time, together with relevant ministries and agencies, we are working to complete, within the year, the process of updating our National Energy and Climate Plan, based on the European Union's "Fit for 55" policy to reduce net greenhouse gas emissions by at least 55% by 2030. This Plan lists specific targets, policies and measures for electricity, gas, renewable energy sources (electricity, heating/cooling, transport), energy saving and energy efficiency of buildings. It is implemented on the basis of specific and costed measures decided after a number of specific studies, with technical assistance from the European Commission and with a view to maximising the resulting benefits.
The main pillars of the National Plan for Energy and Climate are the following. To this end, we have established the Single Service for the rapid licensing of renewable energy projects at the Ministry of Energy and are proceeding with the creation of an online platform for the submission and processing of the relevant applications. [*]The second pillar is to improve the efficiency of the country's energy sector with measures for rational use of energy, installation of RES systems and use of energy upgraded equipment and systems. The Ministry of Energy, Trade and Industry, for the Programming Period 2021 - 2027, has secured a total of approximately EUR 590 million, which will be used mainly to provide financial incentives to households, businesses and public bodies to invest in RES and energy efficiency measures. [*]The third pillar of our strategy is to create the necessary infrastructure to remove our energy isolation, upgrade, expand and digitalise the grid and promote storage systems. At this stage, it is urgent to implement the grid projects in order to remove the technical barriers related to the further penetration of dispersed generation from RES and to reduce the curtailment of green energy. [/LIST]
The realisation of the potential that the fourth energy package gives to citizens and organised Energy Communities and Renewable Energy Communities depends to a large extent on the technological transformation of grids into smart grids, the equal access to them of new storage technologies and the exploitation of demand response. To address these challenges, a budget of around €150 million, from European funds, has been budgeted for the extension, upgrading and digitalisation of the grids. In addition, for the creation of energy storage infrastructure, we have secured a €40 million allocation from the Fair Transition Fund, while in order to remove our country's energy isolation, the "EuroAsia Interconnector" project, the electrical interconnection between Cyprus, Greece and Israel, is being promoted with €100 million.
At the same time, we are studying and submitting, in cooperation with all relevant bodies, comments and suggestions on the modification of the electricity market, a debate which has been launched within the European Union with the aim of amending the I believe that the Authority's efforts to develop large photovoltaic parks, in order to produce electricity that is green and lower cost, as well as the cooperation between AHK and the Ministry of Education for the installation of photovoltaic systems in school buildings, on the basis of a project announced by the Ministry of Energy, deserves special mention.
At this point, I would also like to highlight the social work that AHK has been carrying out over the years, both with regard to the provision of special pricing and uninterrupted supply of energy to all vulnerable energy consumers in our country, and more generally through the offer of discounts on its tariffs, which helped households and businesses in our country to cope with the financial difficulties caused by the pandemic.
However, in order for AHK to be able to meet the challenges of the times, to work rapidly towards the green transition, to compete deservedly with the private parties that will enter the competitive electricity market and to provide excellent quality services to its customers, it must proceed with the modernisation, digitalisation and optimisation of the Agency's operations, reviewing policies, objectives and vision along the way.
The Ministry of Energy stands by the Authority in this effort, which it has supported and is supporting in the following ways:
- Submitted to the RAEC the plan for the installation of renewable energy systems, as prepared by AHK,
- Supported AHK's requests for financing work for grid upgrades and automation of €114 million from the Fair Transition Fund, as well as for the Recovery and Resilience Mechanism to cover the cost to consumers of installing smart meters, amounting to €35 million.
- Supported AHK's request to the European Commission to grant an exemption for the continued operation of the Dhekelia power plant.
- Promoted most of the requested jobs, in particular for specific sectors where immediate staffing is needed.
- Requested the Board of Directors of AHK to submit to the Ministry a comprehensive plan for the upgrading of the Dhekelia power plant.
- Recommended to the Board of Directors that a study be carried out by external consultants to draw up the Authority's strategy for the energy transition, based on the State's plans.
In order to achieve all of the above, it is important that the Authority continues to invest in upgrading the professional education and training of its staff, which is key to improving the productivity of the Authority and, more generally, to developing more productive and optimal processes, products and services. Over the years, AHK's staff has demonstrated its extensive experience and expertise, which have been catalytic in times of crisis. Therefore, it is your contribution, i.e. that of the employees of AHK, that will determine the future of the Authority in this effort to restructure and modernise it.
Ladies and Gentlemen,
In conclusion, I would like to assure you that the Ministry aims to ensure the soundness and competitiveness of AHK, in the context of the broader restructuring of the energy sector, and will be at its side to support it in any new initiative that will also help our country to achieve its objectives. I am confident that AHK will continue to maintain its high level of professionalism and business development and I look forward to close cooperation between the Ministry and AHK to achieve our common goals.
Thank you and I wish you every success in the work of your Conference.
(GA)
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Views & opinions expressed are those of the author and/or PIO
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