STATE bureaucracy is ultimately to blame for delays in the use of renewable energy sources, said Energy Regulator Costas Ioannou yesterday, warning that consumers would end up paying the price for civil service inefficiency.
The head of the Cyprus Energy Regulatory Authority pointed the finger directly at state machinery for the long delays in implementing renewable energy sources, and called on them to work harder to reach targets on time.
Ioannou said organisations like the Electricity Authority of Cyprus (EAC) could soon expect the EU to start imposing penalties for failure to meet EU targets on renewable energy, the cost of which would eventually be borne by the consumer.
“State bureaucratic procedures are ultimately to blame, and consumers will have to be prepared for worse,” he said.
“If we don’t see substantial and immediate steps taken for the arrival of natural gas, for the operation of wind parks, on further incentives for photovoltaics and on the tax rate imposed on the EAC, then consumers will see worse days,” he added.
Ioannou noted there was a complete lack of progress on the promotion of renewable energy. He called on the relevant ministries to do more to speed up the process and avoid the imposition of penalties by the EU.
“First, there is the delay in the introduction of natural gas, along with the operation of a fourth electricity production unit. Second is the complete lack of progress in executing a load of projects in renewable energy, which will result, very soon, in the EAC and other organisations getting bills for pollution payments, which naturally, will be transferred to consumers.”
On wind energy, Ioannou highlighted that the Regulatory Authority had issued permits for wind parks producing up to 600MW.
“If only 180MW are produced by 2010, this will be enough to cover the six per cent that we are obliged to cover,” said the Energy Regulator.
Ioannou noted that all the wind parks were in the process of waiting for further permits from other government departments, like town planning and others.
“I am sure that the relevant ministries are trying but they will have to try more,” he said.
On the promotion of solar-powered energy, Ioannou said the incentives on offer today were not effective enough in promoting the use of photovoltaics.
“Without additional incentives, nothing will happen. At the moment, someone who will invest in photovoltaic energy needs around 13 years to regain his capital. As you can understand, no one is interested.”
The Energy Regulator noted that progress in promoting biofuels and biomass was insufficient to get Cyprus out of its energy dependency problems.
“The potential is very limited on this, whatever happens, it won’t save the situation.”
Finally, Ioannou called on the state to review its taxation of the EAC, which currently stands at almost three times the normal corporate rate levied on private companies.
This greater tax burden did not help to stem further increases in the price of electricity, he noted.
Ioannou highlighted that all renewable energy projects were tied up in red tape. “We don’t have the executive power to impose the implementation of these units without taking others into consideration,” he concluded.
