The cabinet approved funding on October 29 for CY EOS Green Energy project by Alfa Mediterranean Enterprises Ltd. for a 50 MW solar thermal power park in the Alassa area in Limassol, portal In-Cyprus reported.
The concentrated solar power project was selected for funding within the framework of the second phase of the NER300 programme of the European Commission for projects demonstrating innovative energy technologies from renewable energy sources. Capital expenditure is EUR 176.2 million, with funding from Brussels covering EUR 60.2 million, the article said.
Previously, on October 7, the cabinet had approved financial support for one more such project, the CY CSPe Helios Power, by PFXT Thermosolar Renewables Ltd. The capex for the 50 MW solar thermal power park in Achera, Nicosia, amounts to EUR 194.7 million, with European funds amounting to EUR 46.6 million, according to In-Cyprus.
These decisions pave the way for finalising the permits so that a legal agreement can be signed between the government and the individual companies that have undertaken the projects. Once the agreements are signed, the European Commission will be notified to release the funds for financing the projects. The funding agreements provide for the sale of electricity to EAC at a price determined by Cyprus Energy Regulatory Authority (CERA) until competitive market regulations set in whereby the companies will make private arrangements for the sale of the produced energy.
This is to ensure that no extra costs befall the state and, by extension, Cypriot consumers. On the contrary, experts say the country stands to gain both financially and environmentally from these projects.