Interview Natasa Pilides Minister of Energy, Commerce and Industry SAFEGUARDING THE FUTURE 42 <strong>Country</strong> <strong>Report</strong> CYPRUS <strong>2020</strong>
<strong>Cyprus</strong>’ position as a competitive investment destination and international business centre is constantly being upgraded. Excellent investment opportunities exist in both new and existing areas, and the island’s growth efforts have been streamlined with the EU’s policy for greener and smarter development – with a strong focus on boosting productivity, innovation and access to markets. You took over as the new Minister of Energy, Commerce and Industry in July <strong>2020</strong>, what key targets have you set out to achieve in your new position? Our government’s immediate priority is to minimise, as much as possible, the adverse effects of the <strong>2020</strong> global health crisis and to create the conditions necessary for the economy to return to a path of sustainable growth. In this light, the Ministry of Energy, Commerce and Industry, with the broad range of economic activity that falls under its competence, is at the frontline of our recovery and growth efforts, which have been streamlined with the EU’s policy for greener and smarter development. To achieve our main objectives, we are now working towards final approval of our new Funding Schemes for businesses and households, totalling around €270 million and covering the Programming Period 2021-2027. We are also in the process of enhancing and modernising the industrial sector, based on the guidelines set out in the new and cohesive National Industrial Policy 2030 developed by our Ministry. Our aim is to increase, in the next 10 years, our industry’s productivity, innovation and exports through digitisation, development of new skills and the upgrading of existing competencies, improvement of the business environment and enhancement of access to finance and markets. Moreover, to support entrepreneurship in <strong>Cyprus</strong>, we are planning to create a dedicated business service centre at our Ministry, intended to facilitate the process of setting up and scaling in <strong>Cyprus</strong>, through the provision of expedited, one-stop services, as well as personalised guidance and information on available funding tools. Other key targets of our Ministry include intensifying our efforts for hydrocarbons exploration and exploitation in the Exclusive Economic Zone (EEZ) of the Republic of <strong>Cyprus</strong>, transitioning to a 100% competitive electricity market in 2021 and further promoting the use of green energy on the island. Measures for the transition to green energy include, inter alia, the simplification of procedures for licensing large commercial Renewable Energy Sources (RES) projects, the introduction of Energy Efficiency Funding Schemes and the installation of energy storage systems and public charging points for electric vehicles. In addition, we are aiming to end <strong>Cyprus</strong>’ energy isolation and strengthen its security of supply by actively pursuing three Projects of Common Interest – the liquefied natural gas import terminal at Vasilikos, to be completed by 2022, the Israel, <strong>Cyprus</strong> and Greece electricity interconnection, known as EuroAsia Interconnector, and the EastMed gas pipeline, which will connect Eastern Mediterranean energy resources to continental Europe. The energy landscape in <strong>Cyprus</strong> has seen much activity over the past few years in both the hydrocarbons and renewable energy sectors. How do you see these areas developing and what opportunities are there for foreign investors? Energy is one of <strong>Cyprus</strong>’ most promising sectors, with a number of investment opportunities in new and existing projects, in both the oil and gas industry and in renewable energy and electricity production. In the area of hydrocarbons, the first exploitation licence was granted to the ‘Aphrodite’ gas field consortium back in November 2019, and in 2021 a new round of exploration work will begin in the Cypriot EEZ. Our aim is to have a clear picture of our EEZ’s energy potential and, subsequently, proceed with the first transfer of gas to Egypt for liquefaction and export by 2024-2025. Specialised firms are already operating in <strong>Cyprus</strong>, servicing regional hydrocarbon activities. Depending on the discoveries made, a number of multibillion-euro infrastructure projects will be undertaken, which apart from the direct underwater pipeline to Egypt for transport of the ‘Aphrodite’ gas, may also include an onshore liquefaction terminal at the Vasilikos Energy Centre. The EastMed gas pipeline, another project of regional significance, is currently at the stage of final FEED studies (Front End Engineering Design) and is intended to connect Eastern Mediterranean resources to continental Europe. Regarding renewables and electricity production, we are focusing our efforts on the operation, by the end of 2021, of a fully competitive electricity market, whilst also making concrete steps to end our country’s energy isolation and moving towards green energy and storage installations. Notable projects in this regard are the €289 million LNG import terminal mentioned earlier, as well as the EuroAsia and EuroAfrica Interview <strong>Country</strong> <strong>Report</strong> CYPRUS <strong>2020</strong> 43