Filenews 5 September 2021 - by Eleftheria Paizanos
"Green" is attempted to make the infrastructure of dozens of small and medium-sized enterprises, residences, government buildings and local authorities, through the grants that will be granted in the coming years to encourage the use of renewable energy sources, energy saving and the implementation of energy efficiency measures.
The grants are included in the National Recovery Plan, which was approved last July by the Commission. Through the implementation of 58 reforms and 75 investments, Cyprus will disburse from the European Recovery Fund by the end of 2026 an amount of up to €1.2 billion. (€1 billion in grants and €200 million are loans). 41% of the funds, namely €447.6 million, concern the green economy.
"F" presents some of the sponsorships that will be offered to citizens for the energy upgrade of homes and businesses, as well as reforms and other measures related to the green economy. The aim of the actions to be undertaken is to improve environmental policy through measures related to green taxation, the opening up of the electricity market and the facilitation of the licensing of renewable energy and renovation projects.
Renovations and RES
Among the measures are the promotion of energy efficiency investments in small and medium-sized enterprises, municipalities, communities and the wider public sector. The aim is to reduce energy consumption in buildings and/or facilities owned by small and medium-sized enterprises, municipalities and communities, as well as in organizations of the wider public sector.
Through this action, 275 entities will be supported to proceed with the renovation of buildings, with the aim of improving the efficiency of production processes. At the same time, energy audits will be promoted, digital technologies and renewable energy sources will be adopted. This investment should be implemented by the end of 2025.
Tackling energy poverty
The plans are also the promotion of renewable energy sources (RES) and energy efficiency measures in homes, as well as measures to address energy poverty in households with disabilities. The measure will encourage the use of renewable energy sources and energy savings for old homes. It will also subsidise the implementation of small-scale energy renovations in households with energy poverty, as well as in households with disabilities.
According to the National Recovery Plan, with the implementation of the energy efficiency measures for homes, grants will be granted to 16,200 homes (including households of vulnerable electricity consumers) for thermal insulation of roofs, for the installation of photovoltaic systems and for the installation or replacement of solar water heating systems. In relation to tackling energy poverty in households with disabilities, support will be provided to 270 households with energy poverty and to households with disabilities for energy renovations, such as thermal insulation and the installation of energy-efficient equipment. The investment is planned to be implemented by June 30, 2026.
Sustainable energy projects
At the same time, RES will be promoted for old buildings used by local authorities, while sustainable energy investment projects will be promoted to address climate change in the rural communities of Cyprus.
According to the plan, this investment will be at two levels, which will focus on encouraging the use of renewable energy sources and energy savings by local authorities/the wider public sector, as well as by non-governmental organisations. Measures will also be taken to facilitate the transition of local communities towards climate change mitigation, with the aim of reducing primary energy demand by at least 30%. In addition, a system of grants will be created to provide support for the use of RES in buildings, infrastructure and social housing of local authorities and non-governmental organizations.
Technical support to communities
At the same time, it will make it easier for communities to take measures to mitigate climate change. In particular, technical support will be given to community councils to proceed with the development of sustainable energy and climate plans. At the same time, a system of grants will be created to support sustainable investments. According to the estimates of Cypriot technocrats, these measures will lead to 580 investments to improve energy efficiency by local authorities and non-governmental organisations. This measure should be implemented by the end of June 2026.
Reduction of pollutants
The National Recovery Plan included measures to encourage industries and businesses to implement measures to reduce emissions. Funding will be provided, which will be equivalent to the cost of purchasing emission allowances. Due to the support, it is estimated that carbon dioxide will be reduced by 354,566 tonnes.
Moreover, the energy efficiency of public buildings will be upgraded, such as the facilities of the Fire Brigade, schools, Nicosia General Hospital, water treatment plants and water pumping stations. Energy upgrade is promoted in 17 urban and provincial fire stations as well as in the Headquarters of the Fire Brigade. Also, thermal insulation and photovoltaic systems will be installed in 405 schools and a photovoltaic system will be created at Nicosia General Hospital, with a capacity of 943 KW. In addition, by the end of 2026, the installation of grid-connected photovoltaic systems with a total capacity of 2 MWp in water treatment plants and water pumping stations should be implemented.
Opening up of the electricity market
A market management system should be installed by 31 March 2023 to facilitate the opening up of the electricity market to competition. The investment foresees the installation and development of the market management system software, while the transmission system operator's personnel are expected to be trained.
Moreover, by the end of the year, the independence of the Transmission System operator from the EAC must be approved by parliament and implemented, in relation to the financial management and management of the personnel. The measure will also facilitate switching, which is expected to reduce electricity costs for domestic and commercial/industrial customers. A framework will also be established to promote the participation of storage facilities in the electricity market. Digital services will also be put in place to streamline the licensing of RES projects and facilitate energy renovation in buildings.
EuroAsia Interconnector
To end the energy isolation, by December 2025 it is hoped that the huge project "EuroAsia Interconnector" will be implemented. This is the interconnection between Cyprus and Greece, which will include a 1,000 MW DC conversion station in Cyprus and related infrastructure in Crete, connected by high voltage DC (HVDC) submarine cables with a length of 898 km and a capacity of 1 000 MW. The project is expected to be part of a wider investment for the construction of a cross-border interconnection pipeline with a total length of 1 208 km between Crete, Cyprus and Israel.
Electromobility and intelligent systems
As regards actions for sustainable transport, the creation of a smart transport system using technologies aimed at improving mobility in urban areas is promoted. 300 sensors will be installed, which will form the basis for the digitisation of physical mobility networks in a geographical information system (GIS) database and for the integration of mobility services. Infrastructure will be developed for electromobility and in particular the recharging of electric vehicles.
The legal framework for the phasing out of polluting vehicles in urban areas, for vehicle registration taxes and for the compulsory use of vehicles by some companies will also apply. Ten fast charging stations are expected to be set up in publicly accessible areas, i.e. in hospitals, in large publicly accessible parking lots or in the outdoor areas of public service buildings (such as ministries or courts). A system of grants for charging electric vehicles will also be implemented. The system will provide financial incentives to promote the development of the necessary infrastructure for electromobility, in particular through the charging of electric vehicles from RES. The grant system will include the installation of photovoltaic systems and charging equipment in residential buildings for charging electric private vehicles and the financing of local/public authorities for the construction of public charging stations for electric vehicles. At the same time, the government fleet with 100 electric vehicles will be gradually replaced for the needs of the government. Also, the Department of Postal Services will replace its entire fleet of motorcycles with electric motorcycles.
University of Cyprus, business and agriculture
In the meantime, by the end of June 2024, RES and smart grids at the University of Cyprus should be upgraded. The infrastructure should also be integrated into the future smart grid. The investment will concern the delivery, installation, operation and receipt of smart network equipment. The measure will also include guidance and training of staff.
According to the Cypriot plan, 400 km will be installed. smart meters to natural and legal persons in Cyprus, for the operation of a smart metering infrastructure, by the distribution system operator.
The monitoring of greenhouse gas emissions in the agricultural sector will be strengthened by establishing a monitoring system, which will provide data to implement more effective mitigation practices. The system will contribute to a 10% reduction in emissions of gases in agriculture by the end of 2025.
This includes strengthening measures to deal with forest fires. By the end of 2025, the state will have to purchase firefighting aircraft, vehicles, and equipment. Specifically, the state will reinforce its fleet with 75 patrol vehicles for forest protection and personnel transportation in fire incidents, with 12 large firefighting vehicles, 25 emergency firefighting vehicles, four bulldozers for the construction of fire protection works with the possibility of transporting by trucks for rapid transport in fires, four ground bulldozers for the construction of fire protection works, six agricultural tractors equipped with the necessary tools for the implementation of fire prevention measures, four-wheel drive excavators/loaders, six branch destroyers, six 20-ton tankers for fire protection purposes and one firefighting aircraft.
Vehicle withdrawal and carbon tax
The plans include the plan to withdraw polluting vehicles and provide incentives to drivers to replace older and more polluting vehicles with alternative mobility options, such as the purchase of a low-emission vehicle or an electric bicycle and/or free annual bus tickets. The vehicles that will be withdrawn will be recycled by licensed recyclers. Priority will be given for older vehicles to be withdrawn.
One of the biggest changes being promoted is the introduction of a green tax. Bills will be adopted to impose a carbon tax on fuels used in sectors of the economy that do not fall under the greenhouse gas emission allowance trading scheme. The reform will also include the gradual introduction of water charges, as well as the introduction of a household waste/landfill charge. The legislative changes will be based on the findings of an independent study to be carried out. The reform should be completed by 30 June 2026.
