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I would also like to welcome you to today's press conference, held in view of the 18th edition of the "SAVE ENERGY, GreenBiz & AquaTech Expo 2024", congratulating, first of all, the Federation of Employers and Industrialists for the very successful, annual event.
The obligation to accelerate Cyprus' transition to a greener economy is a fact. The state's policies in this direction are aimed at strengthening the security of energy supply, removing Cyprus' energy isolation, the operation of the competitive internal electricity market and the operation of the internal gas market. At the same time, our main concern is the reduction of energy costs for consumers, which will be achieved, inter alia, by further exploiting the potential of Renewable Energy Sources (RES), but also by promoting energy efficiency investments.
Within the framework of the European acquis, new and particularly increased targets have already been set for our country for 2030, both for energy efficiency and RES. Specifically, by 2030 Cyprus is required to have.
In addition, the national mandatory target for cumulative end-use energy savings by 2030 has been increased by 43% compared to the previous target. Part of this should be achieved through measures to benefit energy-poor consumers.
We should also focus on the country's new obligations to improve energy efficiency in buildings. As far as the public sector is concerned, all public bodies should gradually upgrade existing buildings to become near-zero or zero-energy buildings. At the same time, from 2030 all new buildings will have to be zero-emission and no on-site production of carbon dioxide emissions will be allowed, putting an end to the installation of oil and gas boilers. For existing residential buildings, a target is set to gradually improve their average energy efficiency in order to make them zero emission by 2050, while any non-residential building that does not achieve a minimum level of energy efficiency will be required to be upgraded.
At this time the Ministry of Energy, Trade and Industry, in collaboration with all relevant Ministries and our scientific partners, is working to complete the review of the National Energy and Climate Plan 2030. The final Plan, which will be ready by the end of next June, will set out the measures and policies by which Cyprus will achieve its new targets by 2030.
In order to finalise our National Plan, we are considering, as we should, the adoption of energy efficiency measures in all sectors as a priority, precisely with the aim of reducing energy demand in the country. Consequently, our policies are being formulated in such a way that energy efficiency technologies take precedence or at least are combined with decisions to install renewable energy systems. In this context, we are placing emphasis on building renovations, which should increase substantially compared to today. At the same time, we take seriously the need to combat energy poverty. A study is already being completed to define energy poverty in Cyprus, on the basis of criteria that will have to do not only with low income, but also with the energy efficiency of housing. Our aim is to identify energy-poor consumers and to implement new measures tailored to their needs.
So, regarding the progress so far in achieving our targets, let me mention that in 2021 the mandatory cumulative end-use energy savings, as well as the indicative milestones set for primary and final energy consumption, were aligned with the milestones set in the National Energy and Climate Plan. It is worth noting that comparing the 2021 energy consumption with the average for the period 2017 - 2019, Cyprus showed the 5th highest decrease in primary energy consumption among EU Member States, at -8.9%, as well as the 2nd highest decrease in final energy consumption, at -9.7%.
Dear friends,
The actions of the Ministry of Energy, Trade and Industry in the field of energy efficiency mainly relate to grant schemes for integrated energy upgrades in homes and businesses and in local government, as well as schemes for individual measures in homes. At the same time, a number of other measures contributing to the reduction of energy consumption are being implemented, such as:
- the creation of a One-Stop-Shop to facilitate energy renovation and renewable energy projects,
- the imposition of obligations on large energy distributors, including AHK, to achieve an annual energy saving target, with measures for the benefit of consumers,
- the replacement of street lighting with more energy efficient lighting, and
- the implementation of information campaigns.
Measures are also being implemented in the transport and water sectors, while the State is launching others, such as a bill on tax deductions for companies carrying out energy upgrades and the fiscally neutral green tax reform.
This year our Ministry is implementing a number of targeted Sponsorship Projects, which will be mostly funded by the European Union's Recovery and Resilience Mechanism. Among them, the Grant Scheme for the Energy Upgrading and Competitiveness of Large Enterprises, with a total budget of €17 million. The €10 million comes from the new European REPowerEU programme and will therefore only be allocated to categories of expenditure that serve the objectives of energy saving and the use of renewable energy sources. It is the first Project announced specifically to support and develop Large Enterprises, including their energy upgrading, and the launch of applications is planned for this month.
In the second quarter of 2024 it is planned to launch a new call for the Energy Efficiency - Upgrade Homes Scheme, with a total budget of €30 million. It is a continuation of one of the Ministry's most popular programmes, with €85 million having been allocated, for example, in the period 2021-2023 to two calls for a similar Plan. The total number of homes expected to be upgraded under all the calls in the 2021-2027 programming period is at least 4,500.
In addition, the second call of the Save - Upgrade in Small and Medium Enterprises and Non-Profit Organizations Plan is planned for the second quarter of 2024, with a total budget of EUR 20 million. The Project aims to upgrade the energy efficiency of existing buildings, as well as to promote energy saving investments in the production and operation processes of SMEs, which will result in energy savings of at least 30% compared to their current situation. The first call of the Plan was implemented in the period 2022-2023 and the total number of investments expected to be completed under the two calls amounts to at least 290.
In addition, the Ministry, through the RES and EE Fund, is implementing Grant Schemes mainly targeting households. The total budget of the mentioned Plans exceeds EUR 120 million for the years 2024-2025 and includes coverage of expenses for roof insulation and installation of photovoltaic systems in residences, as well as energy upgrading of local government buildings. A Grant Scheme for the installation of a photovoltaic system for charging an electric or plug-in hybrid vehicle is also being implemented.
The interest shown by our fellow citizens in the Schemes is great and increases every year. It is indicative that in 2023 over 21,000 applications from households were submitted to the RES and EE Fund, compared to 12,000 in 2022 and 7,000 in 2021. Already, just in the first 3 months of 2024, the number of applications submitted to the Fund is approaching 10,000.
It is important to note that during the latest announcement of the Subsidy Plan related to housing, the new category "Photovoltaics for All" has been added, which provides the possibility of installing a photovoltaic system by citizens who do not have the initial capital. Important changes have also been made in relation to vulnerable electricity consumers, for whom the subsidy for the installation of a photovoltaic system has been significantly increased to approach 100% of the investment cost. In addition, a new specific category for "Roof Insulation for Vulnerable Households" has been added to the Plan, also with an increased subsidy.
Ladies and Gentlemen,
Informing the public about energy issues and understanding the importance of green investments to address high energy costs is a key prerequisite for the success of our green transition. In this context, our Ministry reinforces, year after year, the actions aimed at informing and raising the awareness of citizens, with information campaigns and presentations to targeted audiences.
At the same time, we actively participate every year in the "SAVE ENERGY" exhibition, which aims precisely to inform its visitors about the new technologies and solutions offered in the Cypriot market in the fields of Renewable Sources, Energy Saving and Circular Economy. We are convinced that the correct and continuous information of consumers, but also of professionals in the relevant sectors, in conjunction with the collective effort that is made, can lead us faster to achieve our goals.
Thank you for your attention.
(GA)
Contents of this article including associated images are owned by PIO
Views & opinions expressed are those of the author and/or PIO
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