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Facility for RES project investors – 3 important bills

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Facility for RES project investors - 3 important bills

Insider / GTP Simplification of procedures and facilitation of RES project investors New methodology for calculating the RES consumption fee. Significant reduction of the fee in the first years with consequent reduction of the electricity bill Upgrading of RES liabilities in transport

The Council of Ministers approved three important bills submitted by the Minister of Energy, Natasa Peleidou, which concern the encouragement of the use of Renewable Energy Sources (RES), the reduction of fuel emissions and the operation of the Renewable Energy Sources Fund (EXE).

The bills will contribute to the achievement of the energy and climate goals, as well as to the green transition of the economy of Cyprus, and with them the harmonization with the Directive (EU) 2018/2001 of 11 December 2018, for the promotion of the use of energy from renewable sources.

1. Bill entitled “The Law on the Promotion and Encouragement of the Use of Renewable Energy Sources of 2022”

The specific bill repeals the “Laws on the Promotion and Encouragement of the Use of Renewable Energy Sources 2013 to 2018” and, among other things, includes provisions for:

(i) Establishment of a contact point (one-stop-center) for guidance, information and facilitation of applicants throughout the process of licensing RES projects.

(ii) Simplification and acceleration of RES project licensing procedures, as well as an obligation to complete the procedures within specific schedules.

(iii) Strengthening the role and participation of citizens in RES issues. In particular, articles are introduced regarding the support of RES self-consumption of electricity and the operation of renewable energy communities, in which citizens, small and medium-sized enterprises and local authorities can jointly participate in the development and operation of RES projects, bringing economic, social and environmental benefits to their community.

2. Bill entitled “The Law on the Operation of the Renewable Energy Sources Fund and Energy Saving Law of 2022”

The bill in question aims at the institutionalization, with a separate Law, of the operation of the RES and Export Fund. and improving the efficiency of the Fund, with a view to achieving national binding targets in the renewable energy and energy savings sectors.

The proposed bill provides, inter alia, the establishment of a specific methodology for calculating the “Consumption Fee” which is the main source of revenue of the Fund, thus ensuring the viability of the Fund.

Considering that, mainly due to the pandemic and the significant increase in oil prices, there has been a significant surplus in the Fund in recent years, it is expected that in the first years of application of the methodology there will be a significant reduction in the Consumption Fee, with a consequent reduction in electricity bills.

It is reminded that the RES and EXE Fund provides incentives to citizens in excess of € 7 million per year for thermal insulation of the roof, installation of photovoltaics and replacement of solar water heaters. For the first time at the end of 2021, a Plan for the replacement, by vulnerable households, of energy-intensive electrical appliances amounting to € 5 million was implemented.

3. Bill entitled “ The Law of 202 2 on Specifications, Sustainability Criteria and Reduction of Fuel Emissions”

With this bill, which repeals the “Petroleum and Fuel Specifications Laws from 2003 to 2018”:

(i) regulate the assignment of obligations to fuel suppliers for the use of RES in transport, in order to achieve the target of 14% RES in the final energy consumption of Cyprus in 2030,

(ii) establish sustainability criteria for the reduction of greenhouse gas emissions for biofuels, bioliquids and biomass fuels, in order to count on the achievement of the objectives, as well as the procedures for monitoring and verifying compliance with the sustainability criteria;

(iii) an obligation is provided to fuel suppliers to reduce by 6% the greenhouse gas emissions of fuel and energy supplied by road transport;

(iv) the Minister of Energy is empowered to determine the fuel specifications through the issuance of a Decree;

(v) a fuel quality monitoring and control system is established, including the procedures to be followed when out-of-specification fuel is detected at petrol stations, onshore installations and ships.

Source: www.philenews.com

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