Cyprus is known to have sunshine 340 days a year which is, undoubtedly, one of the reasons for its attraction of tourism. This abundance of sunlight also makes Cyprus a prime location for solar energy. Furthermore, Cyprus geo-strategic location and its close relations with Europe and Middle East provide the best scenery for investment in the energy field.
As we all know burning fossil fuel creates air pollution, which contributes directly to climate change, increasing the temperatures resulting in greater pollen production. More pollen means more asthma for children. The cost of society in terms of health problems due to toxic air pollution has been estimated to be Billions. Consequently, renewable energy is the future of the world.
Renewables are predicted to be the fastest-growing energy source over the next 20 years, with total worldwide renewable energy usage expected to increase by 40%. Investors can take serious advantage of the opportunities from this predicted growth. As the European Union is required to fulfil at least 20% of its total energy with renewables by 2020, a greater interest has already been shown in wind farms, photovoltaic (PV) systems, solar thermal plants and biomass and biogas utilisation plants.
NER300 is the latest financial instrument co-managed by the European Commission, the European Investment Bank and Member States. Recently, the NER300 approved funds for three projects in Cyprus, namely, the Helios Power Project, the EOS Green Energy Project and the Green & Smart-Grid Project.
Financing for RES projects in Cyprus can be obtained via:
· European Financing Programs and Grants i.e. NER300.
· Owner equity, private equity funds.
· The European Investment Bank.
· Agreements with Energy Saving Companies (ESCOs).
Even though the country has some inherent and technical limitations regarding the reliability of the energy system, they are exploring ways to introduce smart grids in the national network and it is on the look-out for projects that could facilitate energy storage, and ventures that have production on a 24-hour basis.
Investors seeking exposure in the RES sector in Cyprus can utilise the financial measures recently introduced by the government. These financial measures are realised as RES Grant Schemes prepared by the Ministry of Energy, Commerce, Industry and Tourism, which provide support and incentives for the promotion of RES-E utilisation in Cyprus.
The main types of RES technologies promoted under the measures for integration in the Cyprus power system include, Solar energy, Wind energy and Biomass.
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