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The Minister of Energy, Trade and Industry, Mr. George Papanastasiou, held a press conference today, during which he presented the work of the Ministry in the first year of his administration.
Announcements of grant schemes worth €354 million. in the three-year period 2023-2025
Starting his presentation, Mr. Papanastasiou stressed that in the three-year period 2023-2025, the Ministry will proceed with calls for Sponsorship Plans totalling €354 million, with the aim of providing practical support to households, businesses and local authorities. Projects of €205.7 million have already been announced, which concern, inter alia, incentives granted through the RES and EE Fund (€137.5 million) for the installation of photovoltaic panels and roof insulation, for the use of photovoltaic panels for vehicle charging, for the installation/replacement of solar water heaters and for energy upgrading by Local Authorities.
The eleven new calls, which will follow in the period 2024-2025, according to the Minister, will amount to €148 million. and will include the three Grant Schemes, already announced by the Ministry, for the Energy Upgrading and Competitiveness Enhancement of Large Enterprises (€17 million), the Promotion of New Entrepreneurial Activity (€20 million), the Promotion of New Business Activity (€20 million), the Promotion of New Businesses (€20 million), and the Promotion of New Enterprises (€20 million).) and the Circular Economy in Small and Medium Enterprises (€14 million).
Upgrading the business ecosystem
In order to make Cyprus an attractive destination for investment, Mr. Papanastasiou pointed out that the Ministry is taking steps to upgrade the business ecosystem. As he explained, these are actions that contribute to the rise recorded both in services exports, which reached €22.9 billion in 2023, up 2.2% compared to 2022 and 52% compared to 2029, and in exports of domestic products, which reached €2.4 billion in 2023, for an increase of 42% compared to 2022.
In particular, the Minister noted the efforts to continuously upgrade the Company Facilitation Unit (CU), in which 1,986 companies have been registered to date. The registration in the Registry of Foreign Interest Companies (FIC) has been done electronically since 17 November 2023, preceded by the launch of the Digital One Stop Shop for Renewable Energy (RES) projects in June 2023. In this context, 250 RES projects, including hybrid projects combining energy storage and RES generation, have been serviced/serviced.
In addition, Mr. Papanastasiou spoke about the actions undertaken by the Ministry to promote the extroversion of Cypriot businesses and the promotion of Cyprus as a business centre, including the organisation of business missions abroad, as well as the cooperation of the Export Helpdesk with the 16 Trade Centres of the Republic for the exploration of export prospects in 52 countries. In June 2024, a new Business Extroversion Grant Scheme will be launched, €1 million per year for 2024 and 2025, while a study on the competitiveness of the services sector will be carried out in 2024 with a view to drawing up an action plan.
The Minister also explained that in 2023 the design and development of the integrated Registry Management Platform of the Department of Registrar of Companies and Intellectual Property was launched, a €14 million project, expected to be completed in late 2025 or early 2026. In November 2023, the full electronic system of the Registry of Beneficial Owners was also implemented, for which there is a high compliance rate, with 164,198 companies registered out of 202,446 registered in the Companies Registry.
In relation to the actions to create an effective insolvency framework, Mr. Papanastasiou referred, inter alia, to the launch, very soon, of the project to modernise and revise the relevant legislation, in the context of which a dialogue will be held to broaden the criteria and strengthen loan restructuring plans. The main objective is to protect the main residence, ensure the repayment of creditors and treat guarantors more favourably.
Intensification of measures for Consumer Protection
Given the appreciation of goods prices due to the successive international crises, Mr. Papanastasiou explained that the Ministry is moving forward with measures to strengthen consumer protection, including the e-kalathi online platform, which will be operational by the end of 2024 and will allow for price comparison, as well as new legislation, prepared and expected to be passed by the House of Representatives in the coming May, to impose a price ceiling for basic goods, such as water, at points of sale where sufficient competition cannot develop, p.e.g. stadiums, airports, harbours, theatres, beaches, hospitals, etc. In parallel, a Bidding Guide will be published in May 2024 to address unfair practices by businesses in their promotional activities.
Redefining energy strategy
In the last section of his presentation, the Minister of Energy stressed that the Government, from the very first moment of assuming governance of the country, saw the need to accelerate the transformation of the energy sector, in order to reduce the cost of electricity and, at the same time, remove our energy isolation, secure energy supply, make optimal use of the natural gas in the Exclusive Economic Zone (EEZ) of the Republic of Cyprus and the rapid green transition.
Specifically, referring to the efforts to promote Renewable Energy Sources and Energy Saving, Papanastasiou noted that Cyprus will have, in June 2024, the final updated National Energy and Climate Plan, having already secured €120 million in funding from the European Union (EU) for the upgrade, digitalisation and expansion of the electricity grid. At the same time, the implementation of the Ten-Year Transmission System Development Plan for the period 2024-2033 has started, while the Ministry is also working on the preparation of a Grant Scheme, through a competitive tender, for hybrid storage systems combined with renewable energy projects.
He also referred again to the upgraded Sponsorship Plans of the RES and EE Fund, which provide, inter alia, for increased sponsorships to vulnerable consumers, highlighting the great interest recorded for the "Photovoltaics for All" category. Since the announcement of the relevant Plan on 1 March 2024, 5,100 applications have been received for this category, with the Minister assuring that this will continue even after the 6,000 applications have been received, which was the initial target. Overall for RES and EE Fund Schemes there was a 300% increase in grants paid in 2023 compared to 2022, from €5.8 million to €23.5 million,
In relation to the promotion of a sustainable and competitive energy market, Mr. Papanastasiou explained that, among other things, the staffing procedures of the Cyprus Transmission System Operator are progressing, while the final acceptance of the Competitive Electricity Market Operation System is expected within the current month (April 2024).
In relation to the promotion of a sustainable and competitive energy market, Mr. Papanastasiou explained that, among other things, the staffing procedures of the Cyprus Transmission System Operator are progressing, while the final acceptance of the Competitive Electricity Market Operation System is expected within the current month (April 2024). The final trial period for the Competitive Market will start at the end of 2024 and is expected to last up to six (6) months.
The Energy Minister stressed that important infrastructure for Cyprus, such as the LNG import terminal at Vasilikos and the electricity interconnection with Greece and Israel, are also progressing with the Government's initiatives. With the resumption of construction work within last March, the terminal is expected to be completed in late 2024 or early 2025, while the floating unit is also expected to be received in May/June 2024. Papanastasiou clarified that the Republic of Cyprus, as it is obliged to do for the protection of Cypriot consumers, has requested from the Independent Electricity Transmission System Operator of Greece (implementing entity) an updated cost-benefit study, with a view to making a final investment decision on the purchase of up to €100 million of equity capital.
Finally, the Energy Minister referred to the initiatives undertaken by Cyprus to bring natural gas from the Eastern Mediterranean for use in power generation, as well as for liquefaction and exports as LNG.
In this context, he also spoke about the actions taken to accelerate the development of natural gas discoveries in the Cypriot EEZ. Specifically, in relation to the processes for the development of the Aphrodite field, he recalled that the Republic of Cyprus has received a proposal from the licensing consortium of Chevron, NewMed Energy and Shell, on the basis of the 2019 Development and Production Plan, which includes a floating production unit (FPU). This proposal is currently being evaluated by the Ministry and, if the next steps are agreed, the consortium is expected to proceed in 2024 with the preparation of the relevant studies (Concept Select, Pre-FEED, FEED), with a completion date of 2025.
According to Mr. Papanastasiou, a Development and Production Plan will also be submitted by the consortium of Eni and TotalEnergies for the "Kronos" field (Block 6), which the Republic of Cyprus will evaluate with a view to reaching an agreement within 2024.
Finally, the Energy Minister referred to the work being done on the other licensed blocks in the Cypriot EEZ, noting that based on the data from the "Glafkos-2" appraisal well (ExxonMobil and QatarEnergy joint venture), potential exploration targets in Blocks 5 and 10 were identified in 2023, while possible synergies with neighbouring discoveries were also examined. Exploration drilling in Blocks 5 and 10 will be licensed within 2024.
(GA/MS)
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