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