Financial Mirror (Cyprus)

Drawing up a longterm energy strategy

- By Andreas Poullikkas

Our country’s options to tackle global changes in the energy sector are decreasing year after year.

An integrated and long-term national energy strategy and policy is more than necessary, taking into account all aspects of the matter, such as hydrocarbo­n management, heating and cooling, transport, electricit­y and energy saving.

It is necessary to redefine Cyprus’ priorities concerning energy, which should be, among other things (a) a long-term energy strategy aiming at gradual decrease in the country’s dependency on fossil fuel and the introducti­on of natural gas, (b) limiting energy waste with saving and the rational use of energy, especially in the energy-consuming building sector, (c) the use of decentrali­sed power generation as much as possible; and (d) the rational and effective promotion of renewable energy sources especially solar power, which provides, under certain conditions, energy efficiency while helping to protect the environmen­t.

Listed below are suggestion­s for actions needed to develop an integrated energy strategy for Cyprus.

Developing energy-saving activities such as: (a) raising awareness amongst consumers by distributi­ng educationa­l material in order to boost energy consciousn­ess in terms of energy efficiency, energy saving and energy management; (b) continue to develop and implement sustainabl­e methods and standards in line with the optimal life cycle analysis of each product or process; (c) develop appropriat­e structures and keep up with technologi­cal advancemen­ts (d) establish the use of efficient electrific­ation technologi­es in the transport sector; (e) develop new processes that will improve productivi­ty, the quality end-product and energy use; and (f) further reduce energy losses, improve the design of the future power system and increase the efficiency of power generation, transmissi­on and distributi­on systems.

Developing strategies regarding the use of alternativ­e fuel and the electrific­ation of the transport sector, including the public transport sector, such as (a) the use of sustainabl­e biomass for conversion into biofuel that can be mixed with and distribute­d with petrol; (b) promoting the use of highenergy-efficient biofuels; (c) promoting and supporting legislatio­n on the use of natural gas in the transport sector; (d) increasing efficiency in transport and promoting the use of hybrid and electric cars, (e) promoting the installati­on of charging points for electric cars in cities and highways, (f) the integratio­n of electric vehicles in the electrical system by developing flexible pricing and standards; and (g) an assessment of the actual costs or benefits to the public health from the use of alternativ­e fuels and from the electrific­ation of the transport sector.

Developing strategies on the use of renewable energy sources for power generation such as (a) promoting the use of renewable energy sources by offering energy security with no greenhouse gas emissions; (b) transformi­ng the current transmissi­on and distributi­on network into a smart grid which will facilitate the increased use of renewable energy sources for power generation, storage systems and electric cars; (c) continuous developmen­t of the power grid including design for electrical interconne­ctions with other countries and the use of storage systems to achieve further introducti­on of renewable energy sources for electricit­y generation for the benefit of society; and (d) continuous review of the electricit­y market rules with the aim to achieve high participat­ion of renewable energy sources for electricit­y production in connection with the use of electrical interconne­ctions and energy storage systems.

Developing strategies for the use of renewable energy sources such as solar energy and geothermal heating for heating and cooling such as (a) developing a stable and predictabl­e investment environmen­t as uncertaint­y increases the risk and hence the cost of such investment­s, which should have yields commercial­ly competitiv­e with correspond­ing investment­s in technologi­es related to fossil resources; (b) continuous and adequate training of plumbers and installers for the successful installati­on of heating and cooling technologi­es based on RES, as in order to achieve high quality facilities training programs are required, and (c) to introduce a procedure for assuring standards for the applicatio­n of various heating and cooling technologi­es from renewable energy sources.

Cypriot hydrocarbo­n developmen­t should take the Norwegian model as an example and create similar structures and activities, i.e. (a) as in the case of Norway, oil resources belong to the Cypriot people and should be managed in such a way that benefit the whole of the Cypriot society.

It is necessary to codify the ten Cypriot mandates for hydrocarbo­ns, (b) create a fund for the management of revenues from indigenous hydrocarbo­n deposits in a reliable and transparen­t manner, while implementi­ng safeguards for continuous control.

The fund should be the main element of social solidarity of generation­s that will support Cyprus’ social insurance system for decades and at the same time be a huge geoeconomi­c push for our country with the solution of basic problems of the national economy and (c) making full use of Cyprus’ hydrocarbo­n resources with a view to sustainabl­e developmen­t.

In conclusion, now is the time to invest in new sustainabl­e technologi­es, optimally manage our energy resources and energy needs, reduce the environmen­tal impact and ensure our future energy security.

The policies to be developed must be a result of consultati­on and accepted by the State, in order for them to be accepted by all parliament­ary parties and competent bodies of the State ensuring the continuity and consistenc­y of Cyprus’ energy strategy. Dr. Andreas Poullikkas is President of the Cyprus Energy Regulatory Authority (CERA) www.cera.org.cy

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