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EastMed and Cyprus energy deposits to be a medium-term choice for EU

17/03/2022 09:26

The choice of the Eastern Mediterranean in terms of energy deposits in Cyprus and EastMed is a more medium-term choice for the EU, as it will take some time to implement the necessary investments, said Minister of Energy, Trade and Industry, Natasa Pilides on Wednesday.

Invited, after the meeting of the Council of Ministers, to comment on reports that global energy developments may bring to the fore again the project concerning the EastMed pipeline, Pilides said that "we certainly hope that the development of the Aphrodite deposit and the other deposits in Cyprus will come to the fore, which can be an alternative source of energy supply in the EU and in other markets."

She added that "whether the EastMed pipeline will be built will definitely depend on the confirmed quantities available for export," noting that "at the moment the Cypriot confirmed deposits are not enough but if there is interest from Israel, then EastMed could definitely be an option."

Asked about the EastMed project's sustainability study, Pilides said that the data have not changed.

"The implementing body has until the end of this year to complete the sustainability studies and make the final investment decision. Therefore, this is the timetable that is still in force," she said.

Asked if there is a result from the confirmation drilling in the "Glafkos" deposit, Pilides said that the confirmation drilling will be completed by the end of March "and an announcement will be made as soon as it is completed and the drilling rig departs."

She added that "we will expect some information from the consortium, which will relate more to the quality of the gas that has been identified. As for the exact quantity, they will still need some time to process the data and we hope that after a few weeks of analysis they will be able to inform us more thoroughly about the quantity that has been verified," she added.

When asked where the exploitation of natural gas stumbles on, Pilides said that the main reason why the "Aphrodite" deposit has not been exploited so far is that the companies are going ahead in accordance with their contracts and contractual obligations. "So strictly speaking, they are not late, they are going on a contract basis," she noted.

She added that the reason why the margin in the implementation of the commitments has been exhausted is that the deposit is quite limited, compared to the investments that need to be made.

"That`s why Chevron, the new manager of the Aphrodite consortium, is working out ways for collaboration and synergies either with the deposits in Israel and Chevron`s activities in Israel, or with other activities in Egypt," she said.

She said that "the latest developments are certainly promising and positive in terms of the need to develop more deposits, and that is why we certainly encourage the consortium to move forward more vigorously with its interventions and find the necessary synergies so that the project can move forward."

Fuel and electricity prices

Asked about the increase in prices for fuel and electricity, Pilides said that the two subsidy schemes for the energy upgrade of buildings approved today by the Council of Ministers as well as all the ongoing plans, the plans for the replacement of energy consuming devices, the RES and ESF plans for the upgrade of houses and the installation of photovoltaics in homes, now with the expansion to virtual net metering, which also allows the installation of photovoltaics in areas other than the roof of the premises in terms of home consumers, will help reduce electricity costs in the long run and is the best method for consumers.

For vulnerable consumers, Pilides said that there are special provisions and special companies, "which are willing to make the investment with our pre-approval, so that the vulnerable consumers do not have to pay an amount themselves and the subsidy is taken by the company itself."

"Therefore, there are options for everyone", she said, adding that "extending the duration of the VAT reduction is something that will help with the cost of electricity."

"We are also promoting through the passing of the bill for the RES and ES Fund the reduction for the next period of the consumption fee which will also contribute to cost cutting," she said.

But, she added, such are the increases that certainly the reduction is about restraint and convenience of consumers and not necessarily a reduction compared to what was in force in previous years.

As for fuel, the Minister of Energy said that we see a lot of fluctuations in prices. "The reason they are not immediately reflected in the reduction of prices is that the shipments that come to Cyprus come every few weeks, due to the fact that we are a small market. Therefore, the increase or decrease is not always immediate," she added.

She pointed out that the Ministry of Energy monitors very closely and is working on numerous ideas for optimisation of both monitoring and measures that can be taken when cases of profiteering are identified.

"We therefore encourage all consumers to do a market research, look at the Price Observatory issued by the Consumer Protection Service and choose the most advantageous solutions," she said.

Noting that there were increases in the same loads, Pilides said that the increases observed were in the consignments that came based on the prices that were valid during the days of receipt.

"They have been checked, we will issue data on exactly the prices that were in force and why the prices have been adjusted in the way they have been adjusted and where they are located. If irregularities are detected - and so far, no irregularities have been detected - the necessary measures will be taken", she noted.
 
Subsidies plans for energy upgrading of buildings

Pilides announced that the Council of Ministers approved today two new subsidies plans of the Ministry of Energy for the energy upgrade of buildings.

The first is worth 40 million euros. This is the largest amount that has been allocated to such a project to date and concerns the energy upgrade of business buildings.

Pilides said that this is an important project because it allows for a maximum sponsorship of €300,000 per company, and covers up to 40% of eligible costs for small and medium enterprises, while also covering non-profit organisations with a subsidy of up to 60%.

The second project concerns the encouragement of energy upgrading by local authorities and institutions of the wider public sector and amounts to 9 million euros.

According to Pilides, the maximum amount of sponsorship will be €700,000 and the minimum amount of €10,000.

The Minister of Energy said that "financial incentives are provided for the conversion of public buildings into buildings with almost zero energy consumption and for investment in RES, photovoltaics, and energy savings and other infrastructure, which can help not only local buildings but also the municipality in general".