Mr. Papanastasiou mentioned that the problem of the operator's demand for fast income restoration is at present being thought-about by the vitality regulators of Cyprus and Greece
There needs to be no electrical energy shopper cost for the Nice Sea Interconnector mission previous to the operation of the cable and the resultant discount in electrical energy prices, mentioned the Minister of Vitality, Commerce and Trade Giorgos Papanastasiou, when requested about this throughout the evaluation of the Ministry's mission on Monday.
Mr. Papanastasiou mentioned that the problem of the implementing physique's demand for fast income restoration is at present being thought-about by the vitality regulators of Cyprus and Greece, who will determine taking into consideration the safety of the electrical energy shopper.
Noting the a number of advantages that the mission will convey to Cyprus, with anticipated industrial operation in 2029, he mentioned that the mission is de facto excessive price, nonetheless its payback shall be fast, whereas he mentioned that the penetration of Renewable Vitality Sources (RES) relies upon from {the electrical} interface.
As he mentioned, the distribution of prices is 63% in Cyprus and 37% in Greece, since it’s documented that this cable will convey extra benefits to the Cypriot shopper.
He famous, nonetheless, that the Division of Vitality's place is that there have to be a movement of electrons within the cable to justify the cost on the buyer.
“This can be a matter of precept. When a cable is down there isn’t any justification for anybody to cost anybody who will get pleasure from that stream sooner or later,” he mentioned.
He added that if the buyer is burdened earlier than the cable is operational, then it is going to be an extra burden to the already burdened price of electrical energy in Cyprus.
“We insist that the buyer be burdened when he sees the good thing about the revenue”, he mentioned, noting that CERA is finding out the matter after the official requests of the implementing physique.
He reiterated that the Republic of Cyprus requested an up to date cost-benefit research for the mission with a purpose to make a remaining funding determination to buy fairness capital within the mission, amounting to as much as €100 million and which needs to be particular to the Republic of Cyprus.
Constructive indications for block “5” of the EEZ
Analyzing the developments concerning pure gasoline discoveries within the Cyprus Unique Financial Zone (EEZ), Mr. Papanastasiou talked about that there’s at present exercise in block “5” by the ExxonMobil – Qatar Vitality three way partnership with some 3D research creating some optimism.
He additionally talked about that inside 2024, confirmatory drilling shall be carried out for the Glafkos discipline of block 10 with estimated portions of 5-8 tcf.
Based mostly on the information from the “Glaukos-2” appraisal properly, inside 2023 potential analysis targets had been recognized in Blocks 5 and 10, whereas attainable synergies with neighboring discoveries had been additionally examined.
In 2024, preparation is underway and exploratory drilling shall be permitted in Blocks 5 and 10. The Minister said that there are sturdy indications for “5” and they’ll see what’s discovered.
He additionally talked about that the Ministry is encouraging corporations within the Cypriot EEZ for synergies, in order that the discoveries are related with pipelines and there are widespread growth infrastructures. He additionally mentioned that there’s a severe dialogue with the businesses that there also needs to be growth of related infrastructure in Cyprus.
The Minister said that the businesses additionally have in mind the instability prevailing in the intervening time within the wider area of Cyprus, for the analysis of their threat. He talked about that within the Jap Mediterranean there may be Egypt, which is a big nation in dire want of pure gasoline, and Israel, which appears to be isolating itself from the encircling space and sees exits within the course of Cyprus.
He added that the Republic of Cyprus has the duty, as one of the vital steady international locations, to keep up stability within the area as a result of another instability will have an effect on the nation's economic system.
“We’re very cautious within the strikes we make,” he mentioned, indicating Cyprus' relations with the international locations of its area.
With regard to the “Venus” block, he said that they’re anticipating the submission of an optimized Plan by the licensed consortium and that it’s anticipated to proceed inside 2024 with the preparation of related research and completion in 2024. On the similar time, he said that within the subsequent three months the problem of the dispute needs to be closed with Israel for the Isai deposit.
Concerning the fields “Kronos” and “Zeus” with the businesses Eni and TotalEnergies, he mentioned that the standard of the content material and presumably the amount is great and they’re ready for the submission of a related Growth Plan for the sphere “Kronos”, which the Republic of Cyprus will consider with a view to reaching an settlement inside 2024.
He additionally mentioned that analysis work is being carried out on laptop. 2, 3, 7, 8, 9 and 11 and inside 2024, an space shall be decided the place 3D seismic survey and allowing work shall be carried out in Sec. 7, whereas potential drilling targets in Blocks 2, 3, 8, 9 and 11 are below analysis.
He additionally talked about that there’s a risk of corporations liquefying a small quantity of pure gasoline in Cyprus for small portions and export by the businesses, because of the instability that exists within the area.
Requested whether or not the function of Cyprus within the area is being upgraded or downgraded because of the instability, the Minister said that each potentialities exist for the reason that instability creates funding uncertainty, whereas corporations are taking a look at options.
The aim is to import pure gasoline in mid-2025
The Minister referred to the resumption of development work for the liquefied pure gasoline import terminal in Vasiliko and mentioned that they anticipate infrastructure completion round late 2024 / early 2025. Additionally anticipated, he mentioned, is the receipt of a floating unit in Might / June 2024.
He additionally mentioned that the implementation of an inside pure gasoline distribution community is being promoted on the similar time and there are additionally parallel actions by DEFA to award a young for importing liquefied pure gasoline.
Answering a query about when pure gasoline is predicted for use in Cyprus, he mentioned that that is anticipated in the course of 2025.
With regard to the aggressive electrical energy market, the Minister referred to the recruitment procedures for workers and managers for the DSMC and the completion of the legislative framework aimed on the full operation of the aggressive electrical energy market and mentioned that the ultimate trial interval begins on the finish of 2024 and can last as long as 6 months. He mentioned that the work has been accomplished in March and the ultimate acceptance of the system will happen in April.
He additionally mentioned that the Transitional Regulation Guidelines are being amended to allow the participation of vitality storage services.
Promotion of RES and EXE
Concerning the promotion of RES and vitality saving, he talked about the operation of the first part of a digital platform for submitting and managing purposes for licensing, in addition to the completion of a research to simplify licensing procedures and the updating of the Nationwide Plan for Vitality and Local weather. The ultimate Plan, he mentioned, shall be submitted in June 2024.
He additionally referred to actions to improve, digitize and develop {the electrical} community with the securing of EU funding of €120 million and the implementation of the Ten-Yr Transmission System Growth Program for the interval 2024-2033.
Concerning storage methods, he mentioned {that a} request was submitted to the European Fee to safe a derogation for TSOs and the transmission system proprietor to personal and handle centralized storage methods. A subsidy plan (minimal tender) can also be being ready for hybrid storage methods together with RES initiatives which is predicted to be put to remaining session in April.
Concerning the “Photovoltaics for All” mission, he mentioned that there have been 5,100 purposes up to now and that this class will proceed even after the completion of the 6,000 purposes which was the unique aim. He additionally said that there was a 300% enhance in paid sponsorships from the RES and EXE Fund in 2023 in comparison with 2022, to €23.5 million from €5.8 million. There was additionally a 64% enhance in submitted purposes.
He additionally mentioned that a number of new classes had been added to the particular pricing for susceptible electrical energy customers.
Help for households and companies
The Minister said that the primary goals of his first yr on the Ministry are the sensible assist of households and companies and the redefining of an vitality technique to cut back electrical energy prices, guarantee provide, take away isolation, speed up the inexperienced transition.
He referred to assist of €354 million to households, companies and Native Authorities within the three years 2023-2025 to supply enhanced incentives for inexperienced investments and empower companies, promote vitality upgrades and the usage of RES to cut back vitality prices and shift to a round economic system.
He additionally referred to the advance of the enterprise ecosystem with the purpose of constructing Cyprus a welcoming vacation spot for investments, with steady upgrading of the Firm Facilitation Unit, strategic promotion of Cypriot services and products overseas, modernization of the Division of Comptroller of Firms and Mental Property and introduction of efficient Insolvency procedures.
Referring to the exports of providers he mentioned that in 2023 they amounted to €22.9 billion which is a rise of two.2% in comparison with 2022. The principle exported providers in 2023 had been telecommunications, IT and data providers with €7.1 billion, monetary providers with €4.7 billion, transport with €4.2 billion, journey providers with €3.3 billion. and analysis and growth providers with €1.6 billion.
Complete home exports and re-exports of merchandise amounted to €4.7 billion in 2023 recording a rise of 11% in comparison with 2022. Home exports had been €2.4 billion in 2023, up 42% in comparison with 2022. Fundamental Exports merchandise in 2023 had been petroleum oils primarily from international corporations with €1.2 billion, medicines with €354 million, cheese and curd with €318 million and juices with €44 million.
The platform for e-kalathi is being organized
Concerning shopper safety, the Minister talked about that the Ministry is within the strategy of organizing the platform for e-kalathi which is predicted to be operational by the tip of 2024.
The Minister referred to the intensification of measures and actions to guard customers within the midst of main challenges attributable to exogenous crises within the buying energy of customers.
He additionally mentioned that the legislation to set most retail costs for merchandise at particular factors of sale, beginning with water, is predicted to be handed quickly.
He additionally famous that an Presents/Reductions Information shall be printed inside Might 2024 in session with companies, on the event of figuring out plenty of unfair practices in relation to enterprise promotions (e.g. in 2+1 gives and packaging with additional product).
He additionally talked about that at present zero and diminished VAT applies to 11 classes of important merchandise.
