Saturday, April 2, 2022

CYPRUS AT AN ENERGY CROSSROADS

 Filenews 2 April 2022 - by Evagoras Prokopiou



Energy in Cyprus enters a new era in the very next period in terms of its energy mix, model and management. Along with the re-evaluation of the European Union's objectives regarding green energy, they have raised the bar very high and Cyprus with infrastructure projects and special plans will try to stay on the right path that has been erased in recent years.

However, water has entered the groove regarding the opening of the energy market scheduled for Autumn 2022.

Therefore, we are entering the final straight as far as the operation of the system software is concerned and tests will begin to be carried out with all providers in the next period, i.e. in spring 2022. The aim is to open normally in the Fall.

The energy mix in Cyprus and the EU

In 2019, fossil fuels accounted for 71% of the gross available energy in the European Union (EU) of the 27 Member States, 91.53% in Cyprus (up from 91.79% in 2018 and 96.28% in 2010) and 85.68% in Greece (up from 85.85% in 2018 and 91.37% in 2010), according to data released this month by Eurostat, the EU's statistical office.

This percentage has decreased significantly in recent decades, due to the increase in renewable energy sources. Since 1990, the first year for which data are available, the proportion of fossil fuels used in the EU has fallen by 10.9 percentage points.

In detail, in 2019, Malta (97%) was the EU Member State with the highest share of fossil fuels in gross available energy followed by Cyprus and the Netherlands (both 92%), Poland (90%), Ireland (89%), Greece (86%) and Luxembourg (82%). Most of the other Member States had shares of between 60% and 80%. Only Sweden (32%), Finland (43%) and France (50%) had shares of less than 60%.

Over the past 10 years in the EU, only Lithuania has increased its share of fossil fuels in the gross available energy by 10 points (from 56% in 2009 to 66% in 2019). The largest decrease of 19 points was measured in Denmark (83% to 64%), followed by Estonia (86% to 73%) and Finland (56% to 43% from 13 points).

Compared to 2018, in 2019, only two EU Member States, Latvia and Austria, increased their share of fossil fuels in the gross available energy, each by one unit, eight states remained at the same levels. Among the other countries, the largest decreases were in Estonia with 12 points, in Slovakia with 4, followed by Belgium and Denmark with 3 points.

Natural gas in 2023

Also on the other front, that of the EEZ, the licensing of block 5 to the joint venture ExxonMobil and Qatar Energy sends clear signals as to the prospects of the energy reserves of the Cyprus EEZ. At the same time, the resumption of the confirmatory drilling in block 10 in December 2021 creates further prospects for commercial exploitation of the deposits of the Cyprus EEZ. The project for the development of infrastructure for the import of liquefied natural gas in Vassilikos is in the process of being implemented. The project is expected to be completed in early 2023, in order to operate the gas-fired power generation within the first half of 2023. However, DEFA argues that it will play an important role in reducing the price of natural gas in Cyprus.

The green energy of Cyprus in numbers

Based on data from the Ministry of Energy, Cyprus has 430 MW of installed capacity from RES until 5/2021, 230 commercial RES projects under implementation and additional requests for RES projects of more than 400 MW to CERA for licensing. Electricity production from RES in 2020 was 625 GWh, 38% from wind farms, 52% from photovoltaic systems and 10% from biomass.

Specifically, as far as green energy is concerned, Cyprus has exceeded its mandatory targets for 2020, based on what the Minister of Energy Natasa Pilidou said. Both in RES and in energy saving. Incentives of €350 million were given in the form of grant projects over the last fifteen years. The binding target of 13% for the contribution of RES to final energy consumption was exceeded beyond 30%, reaching 17%, while we managed to have cumulative energy savings of 120%. In addition, the indicative target for res penetration in heating and cooling, which was at 23.5%, amounted to 38.55%. Currently the installed RES capacity amounts to 467 MW and more than 127 commercial RES projects, with a capacity of 237.8 MW, are under implementation. We have made great progress in a decade, with electricity from RES having increased by 162% from 2011 to 2020. In 2020, electricity production from RES amounted to 612 GWh, of which 39% from wind farms, 51% from photovoltaic systems and 10% from biomass.

New era in waste management with energy production

Significant changes in the waste sector come through the new Municipal Waste Management Strategy for the period 2021 - 2027. All plans take into account the new institutional framework, as dictated by the Green Deal and the European Union Action Plan for the Circular Economy, as well as the problems that have accumulated in the waste management sector in Cyprus, due to wrong decisions of the last decades. It also takes into account the economic tools already being promoted to reduce waste generation and the new role of local authorities.

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By the end of 2022, a system of separate collection at source and separate collection of municipal waste, including organic waste, the implementation of the "Pay as I Throw" system, the application of a landfill tax, the application of an environmental tax to single-use plastic products and products with plastic content, the reduction of the VAT rate for second-hand products and secondary raw materials are expected to be established, the implementation of guarantee schemes and return and refilling systems, and the creation of a waste management fund to finance waste management programmes, initiatives and innovations. With the implementation of the above, 50%-60% of organic waste will be significantly reduced in the first stage and therefore a reduction in the production of mixed waste currently transferred to waste management plants will be achieved.

The big challenge is to make full use of the existing waste management infrastructure. In essence, the Integrated Waste Management Facilities (OEDA) in Koshi and Pentakomo will remain in operation. Waste from Larnaca, Famagusta and Nicosia will still end up in the Koshi plant. In Pentakomo, apart from the waste of Limassol, the waste of the Pafos district (apart from the organic ones) will also be transported. Therefore, the existing infrastructure will be exploited to the maximum extent and strengthened by developing new infrastructure where necessary.

Within the strategy there are provisions for the waste that will be generated in the next decade. By 2025 it is estimated that waste generation will amount to 631 thousand tonnes, of which 55% will be recycled. Based on the forecasts the 347 mm. tonnes will come from a separate collection, of which 151 thousand tonnes will come from a separate collection. they concern organics and the 196 mm. recyclables. The remaining 284 mm. concern the mixed and are divided into 185 mm. the secondary fuel RDF or landfill and in biostabilization the 99 mm. Tons. Therefore, once separate collection at source and separate collection of municipal waste are implemented, the two OEDAs will have overcapacity, due to the projected reduction of mixed waste. It is noted that the plant in Pentakomo already produces RDF, which however is not in good quality so far and therefore should be supported. However, in the immediate planning is for the unit in Koshi to be upgraded and a new line installed in order to produce in turn the RDF/SRF. It is stressed that increasing the production of RDF from mixed waste is considered necessary to reduce the quantities landfilled. The target for 2035 is for only 10% of household waste to be landfilled. Considering the need to increase the production of RDF it is necessary to ensure its availability. The aim is to end up the entire amount of RDF produced by the two plants to only one recipient. This can be achieved in two ways based on the data to date. The first is the disposal of RDF in units in Cyprus, e.g. in Vasilikos cement works. The second option is for the Republic of Cyprus to proceed with the tender notice in order to construct a waste power plant for the acceptance of the RDF. In this case, it is expected that this unit will take place somewhere centrally between the two OEDA units. It is noted that the operation of a waste to energy plant has been of concern to the government in the past, but its implementation has not progressed. It is estimated that the cost of constructing a plant for the energy recovery of waste amounts to approximately €200 million. and therefore the individual who is likely to bear such a large cost should also take any risk in order to be viable.

The exhibition that will gather the "energy" in Cyprus

If you want to know everything about energy, we suggested you visit the 16th SAVENERGY exhibition between 18 and 20 March at the International Fair. SAVENERGY 2022 is the fixed meeting point for those who want to discover energy efficiency solutions, which are instantly converted into savings and at the same time for those who wish to respond to the challenges of the times. Dozens of exhibitors participate in the exhibition, presenting their latest technologies at the largest sustainable energy exhibition in Cyprus.

The "Cypriot" projects that have been included in the EU list

• Group of projects Israel - Cyprus - Greece (currently called as "EuroAsia Interconnector"). The project team includes the following PCIs:

› Electrical Interconnection between Hadera (Israel) and Kofinou (Cyprus) and

› Electrical Interconnection between Kofinou (Cyprus) and Korakia (Crete, Greece)

• A group of natural gas infrastructure and related equipment for the transportation of new gas sources from the offshore deposits of the Eastern Mediterranean which includes the following CSR: EastMed Pipeline - Offshore natural gas pipeline of Cyprus to mainland Greece via Crete, and

• Development of gas infrastructure in Cyprus the so-called "Cyprus Gas2EU"