Cyprus is fast becoming the bright light of the eastern Mediterranean and of the smaller EU member countries. The country's energy supply is destined to include domestic oil and gas production, solar, wind, and biofuel production. The country intends to make sure its energy supplies will be protected from dislocation of supply, caused by international problems, and to become an exporter of energy, both within the European Union and to non-member countries. Its energy policy is, of course, in line with EU policy and intentions which makes it a great opportunity to invest in cyprus.
Cypriot energy policy is broad-based and encourages foreign investment. This is particularly true of the oil and gas markets. As part of this, the country has already begun to construct its own oil terminal from which undersea pipelines will deliver some of the Aphrodite crude oil and gas to both the EU and Africa. Energy in Cyprus is, clearly, an important element of its economic revitalization.
Oil fields in the eastern Mediterranean include the so-called Aphrodite field, which is inside Cyprus' Exclusive Economic Zone (EEZ). This field is expected to hold approximately 127.4 billion cubic meters (454 trillion cu ft) of natural gas and approximately 1.7 billion barrels of oil.
Six exploration licenses have been granted to companies, such as Noble Energy, among others. The government is in discussion with its partners to enable a regional hub to be built for both domestic consumption and for liquefaction to enable gas exports. At the same time, a €300 million petroleum storage and distribution terminal has been completed.
Renewable energy sources (RES) are very important to Cyprus. The country's National Action Plan states that by 2020 it will have a production capacity of 584 MW. It already holds the unofficial per capita world record for domestic solar power production.
Its other goals include generating, by 2020, 13 percent of its total energy needs from RES and 10 percent of its transportation needs.
Cyprus is fortunate in that it enjoys 300 days a year with 75% sunshine, and many areas experience sustained daily winds of 5 - 6 mph, a level required for wind farms to become viable. In addition, its domestic agriculture and landfills will both generate commercially viable quantities of biofuel.
To achieve these goals, Cyprus will need a great deal of foreign investment. The government is making it attractive for foreign investors through its policy of tax breaks for investment in production equipment, and its low interest rates. In addition, Cyprus has a unique policy within the European Union to enable foreign investors to achieve Cypriot citizenship by investment. To learn more about the opportunities and how you can benefit from them, please contact us. We would be delighted to discuss the exciting opportunities available to you.