On the occasion of the discussions that are taking place regarding the issue of energy costs, an issue that is plaguing the Cypriot economy, the Council of Economy and Competitiveness considers that this unfavourable development should be an important incentive for the implementation of substantial measures that in the long term will shape a framework in which green growth will be a fact for the economy of the country with enormous economic, environmental and social benefits. The Council would like to draw attention to the risk of focusing on the promotion of short-term proposals/measures to address inflationary pressures, which may derail the focus from the necessary breakthroughs and actions that will deliver the desired long-term results in terms of the level of competitiveness and sustainability of the economy. [/B]Creation of a State Secretary for Climate, Environment and Green Sustainability
The creation of a separate State Secretary will have positive effects, as it will provide the possibility of a unified establishment and monitoring of the long-term energy strategy, the global vision and direction for 2050 (climate neutrality) and the monitoring of the Key Performance Indicators (KPIs) that will guide actions towards the unified goal.
2. Developing a Long-Term Energy Strategy
The reforms being promoted on a global scale in relation to climate change and sustainable development require the immediate planning of the long-term Energy Strategy up to 2050, beyond the current planning which has a time horizon of 2030, in order to enable the Cyprus economy to survive in the new global conditions of green and sustainable development.
3. Upgrading Electricity Grid and Infrastructure
A key prerequisite for decoupling from today's polluting conventional forms of energy is the greater use of renewable energy sources (RES). If Cyprus is to be able to increase the rate of RES use, it will need to upgrade its electricity transmission network and transform it into a smart grid. This requires techno-economic studies starting from the climate targets based on Cyprus' contractual obligations for climate neutrality 2050, taking into account how these will evolve under the EU's "Fit for 55" Directive
4. Energy Market Liberalisation
The full liberalisation of the electricity market, which is necessary for the effective promotion of renewable electricity generation in line with the set timetables, is expected to be completed before the end of this year. The Council stresses that it is very important that there should be no further delay in the full liberalisation of the electricity market.
5. Increasing Production from Renewable Energy Sources and Enhancing Energy Efficiency
The use of photovoltaic panels, an area in which Cyprus has the potential to achieve high performance from residential producers, general purpose buildings, public buildings and businesses, has a prominent role in achieving the increase in energy production from renewable energy sources. The adoption of the harmonisation bill for the transposition of the European Renewable Energy Directive into national law, incorporating provisions for the simplification and acceleration of the licensing procedures for renewable energy projects and energy storage systems of its interconnection networks, is an action that must be promoted as soon as possible. The creation of a digital "One Stop Shop" to facilitate information and licensing of applications for RES projects is important, as well as facilitating energy upgrades in buildings, which will encourage the submission of applications for RES projects.
In the context of a liberalised energy market, it would be appropriate to promote the design of auctions for renewable energy generation, as this would facilitate the supply of electricity from renewable energy sources at lower prices, thus allowing foreign entities to bid, thus promoting competition.
6. Electricity Interconnection with neighbouring countries
Cyprus is the only country in the EU that is not connected to the European grid, which limits the competitiveness of the energy market and poses a risk to the uninterrupted supply of electricity to the island. The immediate funding and implementation of the EuroAsia Interconnector Project of Common Interest for electricity interconnection with Greece, Israel and Egypt should be ensured. The implementation of the project will end the energy isolation of Cyprus, promote energy security, contribute to the development of a competitive electricity market and facilitate the development of renewable energy sources.
7. Exploitation of Cyprus' natural gas resources
The development of the energy sector through the exploitation of the country's natural gas resources (combined with the promotion of RES and the import of LNG) will drastically solve the problem of Cyprus' dependence on imported oil, promote energy security and improve the competitiveness of the economy.
Every effort should be made to secure political and financial support from the EU for the realisation of the "EastMed pipeline project" currently under study, concerning the creation of a natural gas pipeline connecting the energy resources of the Eastern Mediterranean with mainland Greece via Cyprus and Crete.
8. Supporting policies
The rapid implementation of the national strategy for digital transformation should be promoted. Serving the public electronically in their dealings with the public and public law organisations and businesses is expected to have a substantial impact on energy consumption and emissions. In addition, the implementation of labour market reforms, in particular the promotion of work-from-home/ teleworking in both the public and private sectors, will help to reduce transport use and thus carbon emissions.
The full text of the Green Growth - Energy proposal is available on the Council's website www.ecompet.cy .
(MB/EXP)
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