The Potential of Photovoltaics in Cyprus

Given Cyprus’ geographical position and high solar irradiance – between 1900 and 2000 kWh per square meter, which is among the highest in Europe – solar energy can be used to reduce the country’s dependence on imported fossil fuels. At the same time Solar energy is by far the most cost effective Renewable Energy Source [RES] compared to the alternatives - Aeolian and Biomass. Cyprus offers excellent conditions for solar operations, with global irradiance levels.

Today, Cyprus is wholly dependent on imported Primary Energy which is almost exclusively made up of oil and petroleum products (95%). In line with EU Directive for a low Carbon Economy by2020, Cyprus is gradually building up Renewable Energy as an important indigenous alternative energy source to be integrated in the existing power generation system. A target of renewable energy share of 20% out of the gross final energy consumption of the EU has been set to be reached by the year 2020. The National Renewable Energy Action Plan submitted by the Government projected that by 2017 the electricity generation capacity from renewable energy sources would reach 400MW. This capacity is expected to reach 20% share of renewable energy in the gross energy consumption. By the end of 2015 the installed capacity of Photovoltaics is only 36MW though there are some major projects already in the pipeline.
Electricity Market Liberalisation and a New Market Model

As of January 1 2014 the electricity market in Cyprus has been 100% liberalised and New Market Arrangements have been issued by the Cyprus Energy Regulating Authority(CERA).

The new electricity market model to be adopted in Cyprus is the Net Pool System with Bilateral Contracts thus enabling the entry of new participants (Generators and Suppliers) in a small, highly concentrated, non-interconnected system A phased implementation is foreseen in2016, initially establishing the Day Ahead Market and subsequently the Intraday Market, each phase expected to take between 18 months and 30 months.

Given the new electricity market model,which will allow new entries on the production side, as well as the competitive edge of PV technology over other RES and conventional fossil fuel, our company focuses on bringing together the three vital elements for viable PV parks, namely, Technology, Land and Project Finance.
Our company has already identified Agricultural Land with proximity to the grid. Land owners are ready to enter into rent and/or partnership agreements
Finding a competent DBFMO to design the PV Park. Obtain all the required regulatory permits
Conclude Power Purchase Agreements.Financing the construction by the DBFMO according to Project Finance model.
Operational and financial management of the asset during the 20-year operation period.
Renewable Energy Sources
Renewable | Energy
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