2020 Cyprus Country Report

Cyprus’ 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 2020, 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 2020 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
Cyprus, we are planning to create a dedicated
business service centre at our Ministry, intended
to facilitate the process of setting up and scaling
in Cyprus, 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 Cyprus, 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 Cyprus’ 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, Cyprus 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 Cyprus 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 Cyprus’ 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
Cyprus, 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
Country Report CYPRUS 2020 43