Implementing the RES Directive: The Cyprus Action Plan
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1 Implementing the RES Directive: The Cyprus Action Plan George Partasides Industrial Extension Officer, Energy Service Ministry of Commerce, Industry & Tourism Republic of Cyprus Seville, 16 February 2010
2 Cyprus Energy System Isolated System No oil or gas pipelines interconnections No existence of electricity interconnections with other countries
3 Cyprus Energy System Main Challenges Isolated Energy System Environmental Constrains High Dependence on Imported Fossil Fuels Marginal Operation of Electricity System on Peak Demand Cyprus Energy System High Cost of Imported Primary Energy Seasonal Fluctuations in Energy Demand High Increase Rate of Energy Demand
4 Cyprus Energy System: Energy Mix 2008 Primary Energy Consumption Final Energy Consumption RES 3.1% Solid Fuels 1.0% Solid Fuels 1.4% Electricity 20.2% Oil Products 95.9% RES 4.5% Final Energy Consumption by Sector 2008 Household 16% Commerce & Services 11% Agriculture 2% Transport (Road) 40% Oil Products 73.9% Industry 16% Transport (Air) 15%
5 MW ktoe GWh Cyprus Energy System: Main indicators Final Energy Consumption (2.6% mean annual increase) Final Electricity Consumption (6.8% mean annual increase) Seasonal Fluctuation in Electricity Demand Average DAY Average Night 1, Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Sep-08 Oct-08 Nov-08 Dec-08
6 Cyprus Energy Policy Main Objectives Security of energy supply Contribution of the energy sector to the productivity and competitiveness of the national economy Environmental protection and sustainable development Clean Energy Cost Effective Energy Adequate Energy Secure Energy
7 Cyprus Energy Policy RES and Energy Saving Main Priorities Maximizing the efficient use of domestic resources of renewable energy Saving energy both in primary form and in energy end-use Promote RES in electricity and heat generation Replace oil in the area of transportation with biofuels Promote efficient electricity and heat co-generation in industries Adopt investments in RES based on the criterion of the overall net benefit Making efficient use of energy by putting into place mechanisms that give incentives to users Efficiently develop RES stations based on physical planning Growth energy awareness Limit bureaucracy and simplify all licensing procedures
8 Key Players in the Cyprus Electricity Market Energy Service - Ministry of Commerce, Industry and Tourism - Formulates the national energy policy Cyprus Energy Regulatory Authority (CERA) - Responsible for the regulation and the oversight of the energy market in Cyprus Electricity Authority of Cyprus (EAC) - A publicly-owned utility currently dominates the Cypriot electricity market - Owns the transmission and distribution assets - Remains the sole active supplier Transmission System Operator (TSO) - Responsible for the operation of the national transmission system and the objective management of electricity trading - Authorized body for issuing quarantines of origin
9 Legislative - Financing Framework for RES Legislative Framework for RES was enacted in 2003 [Law 33(I)/2003]: A Special Fund has been created aiming at support of RES and Energy Saving investments in Cyprus. The revenues (almost 10.5M) of this fund are coming from the consumers paying an additional tax of 0.22 eurocents/kwh (This might be revised soon) Procedures for licensing and interconnecting wind and photovoltaic installations to the national grid have been specified Existence of an Attractive Investment Framework First Action Plan for the promotion of renewable energy sources for the period : Financial incentives in the form of government grants and subsidies for the promotion of investments in the field of energy saving and energy production from renewable energy sources A new Action Plan for the years : Includes large-scale RES investments for electricity generation
10 National Targets for RES Directives 2001/77/EC and 2003/30/EC Directive 2009/28/EC 6% indicative target for the electricity production from RES by the end of % compulsory target for RES contribution to the final energy consumption by % RES contribution to the total final energy consumption 5.75% (energy content) indicative target for biofuels in overall transport petrol and diesel consumption by the end of % compulsory target of RES in the overall transport fuel consumption by 2020
11 National Targets for RES & Current Status Biofuels in overall transport petrol and diesel production (indicative target) Electricity production from RES (indicative target) RES contribution to the total energy consumption (indicative target) RES contribution to the final energy consumption (compulsory target) RES share in the overall transport fuel consumption (compulsory target) % Current Status
12 Cyprus Action Plan Road Map for 2020 % of RES Contribution in Final Consumption 14,00% 12,00% 10,00% 8,00% 6,00% Target Expected 4,00% 2,00% 0,00%
13 Calculation table for the renewable energy contribution of each sector to final energy consumption (toe) Year A) Expected gross final consumpt ion of RES for heating and cooling B) Expected gross final consumpti on of Electricity from RES C) Expected final consumpti on of Energy from RES in transport D) Expected total RES consumpt ion E) Expected transfer of RES to other Member States F) Expected transfer of RES from other Member States and 3rd countries * G) Expected RES consum ption adjuste d for target (D) -(E) + (F) Cyprus Government is open for Joint Projects that arbitrary set the effect of stability and Security of Supply to the island.
14 Projections - Optimum Scenarios Small PV Systems from 2.615MW today MW (Including 1.1MW from the installation on Public Schools, Governmental Buildings and Army Camps) Biomass Systems expected MW total installations at the end of 2010 Wind Parks 113.5MW approved already and is expected to have installations up to 133.5MW at the end of 2010 (>165MW at 2011). Installed Capacity of RES Systems PV systems End 2010 Total KW Biomass Wind CSP 25* *CSP System is expected to be installed between 2011 and 2013, governments target to increase the capacity to 50
15 Wind Energy Potential Obstacles The average wind speed in some areas, which is suitable for the installation of wind farms, is about 5-6 m/s Two Wind Park of 113.5MW at Pafos and Larnaka district has obtained all the licenses and is expected to be fully operational by the end of The wind Park will contribute to electricity production by 2-3%. Obstacles Limited potential for wind energy generation Land planning problems (Cyprus, developed tourism country) Oppositions of local communities Problems with acceptance of people Conflict with real estate (touristic) development Limitation on account of system stability
16 Solar Energy Potential Obstacles Cyprus enjoys more than 300days with 75% of sunshine Cyprus holds the unofficial World Record in solar water heating with almost every household having a system installed (more that 750,000m 2 of solar collectors installed) More than 3.3MW of PV systems have been installed. Per capita, Cyprus ranks 6 th highest in the EU with 2Wp per head of population Mean daily sunshine duration - December 9.8 hours - June 14.5 hours Average Daily Radiation 4 kwh/m 2 Overall annual solar irradiation received by a solar collector Obstacles: Low efficiency High capital investment (However there is dropped lately in prices) Need high subsidies in order to be viable compared with other technologies (This might be revised soon since the Initial cost was dropped lately)
17 Solar Energy
18 Solar Thermal Electricity Potential
19 Solar Energy Potential Obstacles Installed PV Systems (Cumulative) Electricity Production- PV Systems kw On Grid Off Grid Total GWh/yr On Grid Off Grid Total Aug Aug. 2009
20 The CSP DSW Project Study Scope: To conduct a Research and Development Study containing a techno-economic assessment study of the current status of technology in the co-production of electricity and desalinated water using Concentrated Solar Power Funded by: The Cyprus Government Coordinator: The Cyprus Institute Promising Solution for Cyprus: Production of water to cover the rising demand and simultaneous production of economically competitive, green electricity from solar power. CSP Technology has been used with Desalination but in a serial way, i.e. production of electricity through solar power first and then utilization of the produced electricity for desalination.
21 Study Conclusion The concept of the co-generation of Electricity and Desalinated Water is technically feasible and economically competitive in comparison to separate desalination and electricity production from renewable sources. It is very well suited to the geographical and technological realities of the island, especially making use of hilly terrain. A Pilot Plant of 4-5 MWe capacity is under study. This should be able to co-generate desalinated water in excess of 300 cubic meters per hour and possibly an optimized design will produce twice as much (600 Cubic meters per hour).
22 CSP - Projects There are some other projects from individuals under study CERA has accepted applications for 5 CSP systems for 160MW. Cyprus Environmental Service has accepted 4 applications of total 46MW 1 Application for 1 MW 2 Applications for 10MW, 1 Application for 25MW
23 MW RES Development Program A new Action Plan for the years The proposed action plan includes large scale RES projects for electricity generation for the period with the possibility of implementing the projects by Wind Solar Thermal PV Biomass Biogas Wind : 165MW Solar Thermal: 25MW PV : 14MW Biomass : 4MW Biogas : 3MW Total : 211MW
24 Financing Tools for the Support of RES Investments Support Grant Schemes for RES: Financial incentives for the materialization of investments for the promotion of renewable energy sources technologies Implementation of a New Grant Scheme for large scale RES developments in electricity generation Continuation of the existing Grant Scheme for individuals and organizations Electricity Authority of Cyprus (EAC) is obliged to buy in priority the RES electricity produced by independent producers at a fixed price based on its marginal power production cost 2% of Gross Income (wind, biomass, CSP) Local Authorities RES Power Producers subsidy (feed in tariff) Special Fund 0.22cent/kWh EAC Grid Consumers Electricity Cash Flow
25 Department of Town Planning and Housing Photovoltaic Systems (ΚΔΠ 869/2003) New legislation for supporting standard PV installations: Regulation 869/2003 Rule 2/2006. Ministerial Order 3/2008
26 Applications per Category Energy Consevation Thermal Insulation in mountainous areas Co-Generation Small Wind Systems up to 30KW Purchase of new Vehicle with low emissions of carbon dioxide < 120gCO2/Km Central solar thermal systems for heating water Solar Systems for Heating Water Biomass Utilaization for heating and cooling Stand Alone Photovoltaic Systems up to 20kW Windmills for water pumping Biomass for Heating and Cooling Thermal Insulation Geothermal Heat Pump for heating and cooling Large Wind Systems Purchase of new Hybrid Vehicle Purchase of new electric vehicle Space Heating and Cooling Solar thermal systems for water pools Photovoltaic Systems connected to the Grid Photovoltaic Systems for water pumping Electricity Production from Biomass and Biogass
27 Cyprus Energy Regulatory Authority (CERA) CERA has accepted the following applications in RES Wind: More than 1000MW CSP: 160MW Photovoltaic Systems> 20KW: MW Hydroelectric: 330 KW Biomass: MW CERA has approved the following applications in RES: Wind: More than 500MW Biomass: 8.715MW Photovoltaic Systems more than 20KW: More than 8MW applications
28 The Electricity Authority of Cyprus (EAC) The EAC, as the sole electricity provider in Cyprus, has committed itself in buying electricity produced by Renewable Energy Sources (RES) at rates set by Cyprus Energy Regulatory Authority (CERA). Furthermore the EAC is participating in ongoing projects regarding electricity production from RES. Such projects include: 300 million investment on a 50 MW concentrated solar thermal power plant at Akrotiri-Limassol. 4.7MW photovoltaic system at Larnaca Airport. Electricity production from biogas, utilising animal waste. 100MW electricity production facility, utilising household and industrial waste. In addition, the EAC is looking into the possibility of installing several photovoltaic systems onto the companies various buildings, and also participating in the development of several wind farms.
29 Thank you for the attention!
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