The fourfold, safe, sufficient, affordable and clean energy supply to meet the energy needs of the country, is the cornerstone of the energy policy of Cyprus.

In line with the relevant European policies, the government cares to ensure the safe supply of energy market with quality products at affordable prices, the liberalization of energy markets and the development of competitiveness. Through the Energy Section is encouraged the use of renewable energy sources and the promotion of energy saving in the context of strengthening sustainability. An important task of the Energy Section is also strengthening the country’s geostrategic role in the energy map of the region.

Aiming at the strengthening of the security of energy supply, strengthening energy self-sufficiency and to shield the geostrategic role of the country in recent years, the Republic of Cyprus develops systematic research, evaluation and use of fossil energy resources that may be within the exclusive Economic Zone.

During the period 2006-2009 the Ministry of Commerce, Industry and Tourism, in cooperation with the Norwegian company PGS, conducted a series of seismic surveys in the marine area of ​​Cyprus, which collected a total 19,000 km of two-dimensional seismic data and 659 square kilometers of three dimensional seismic data.

As part of the 1st Licensing Round conducted in 2007, a license was granted for hydrocarbon research exploration in field No. 12 in October 2008 for the American interest company Noble Energy International Ltd. During the execution of the research program of the above mentioned company, the gas field discovery in volume is estimated to be between five and eight trillion cubic feet, with an average of seven trillion cubic feet.

The 2nd Hydrocarbon Licensing Round was announced on February 11, 2012. The interested companies will have at their disposal 90 days to submit their applications. It is estimated that new hydrocarbon exploration licenses will be awarded to selected companies before the end of the year 2012.

In the context of exploitation of domestic gas fields, the possibility of pipelines’ installation for transportation to mainland Cyprus is considered, and then distributed to the points of use, as well as constructing a capacity building for the liquefaction of natural gas for export purposes.

The Directive 2009/28/EC on the promotion of energy from renewable sources (RES), places by 2020 to Cyprus national mandatory target of 13% RES in gross final consumption of the country. In addition to the above target, in each Member State by 2020 at least 10% of final energy consumption in transport should come from renewable energy sources.

The promotion of renewable energy sources is high on the priorities of the Cypriot Government. One of the most important renewable energy promotion measures are the plans for economic incentives to encourage such investments operating since 2004. To this end from February 2004 until December 2011 were granted in the form of grants and / or subsidies of around € 79.3 m. to over 46100 beneficiaries.

The measures and policies of Cyprus seems that they began to bear fruits after depending on the calculation methodology of the Directive 2009/28 / EC and the nominal deviation of Cyprus for maximum consumption for air transport, the Republic of Cyprus with a share of 5.85% RES in gross final energy consumption in 2010 has exceeded the indicative interim trajectory for 2011-2012 that was set at 4.92%. It is therefore close to implementation the indicative trajectory for 2013-2014. In addition, with a same 2% RES in gross consumption of transport in 2010, Cyprus has almost achieved the indicative target of 2.2% RES share. The share of RES in gross electricity consumption in 2010 was 1.4%.

The Applied Energy Laboratory (www.aelab.gov.cy) is specialized on testing of solar thermal systems in accordance with standards EN12975 and EN12976. The laboratory is accredited according to the standard EN17025 and offers high quality services to Cypriot and foreign solar thermal systems industries. The purpose of the laboratory  is to increase the contribution of RES in the energy balance between Cyprus and the optimization of solar systems.

The main axes of the sector is the quality control of oil and fuel supplied in the domestic market, monitoring of oil prices and the updating of the EU and other government agencies. It is responsible for the implementation of the EU policy for biofuels and further promote their use in Cyprus, the coordination of actions to maintain national stocks of petroleum products and the management of any supply problems with conventional forms of energy, and the preparation of annual energy balance in Cyprus.

To comply with our commitment to the EU from 1/1/2009 the share of the liberalized market increased from 35% to 65%,  resulting to eligible consumers (those who can choose their supplier) are all non-household consumers. In the second stage, which starts from 1/1/2014, there is be full liberalization of the market and eligible consumers will be all consumers without exception. The ultimate objective of the liberalization of the Market Power is to provide electricity to consumers at competitive prices, while improving the provided services to them.

The sector “Industry and Environment” of the Energy Section, aims to the development of the industry in addition to environmental protection, within the framework of modern concepts of sustainable economic and industrial development. The issues related to the responsibilities of the sector concerning inter alia the Directive on Eco-design of products related to energy, waste management in marinas and general monitoring industrial pollution issues and environmental protection.

More information is available on the websites: www.mcit.gov.cy, www.cie.org.cy