ANY NEW applications for subsidies to install photovoltaic systems may take years to process, as current government policy seems to stifle the growth of this type of renewable energy source to promote wind farms, it emerged yesterday.
The association of renewable energy enterprises (CAREE) charged that Cyprus’ policy was not harmonised with the policy the EU wants its member-states to implement as it blatantly violated the principle of fair promotion of renewable energy sources (RES).
Last year, there were around 1,300 applications for systems producing less than 21 kilowatts (KW) – total 22 megawatts (MW) – and 199 applications for systems producing between 21KW and 150KW – total 18MW.
“For the approval of these applications it is necessary to inject the special fund with several million euros,” CAREE chairman Giorgos Georgiou said. “At the moment the fund permits approval of a very small number of applications – not exceeding 2MW in total.”
CAREE said it will boycott the Save Energy exhibit later this month as any presence there should be accompanied by the potential to sell products, which would not be possible under the current state of affairs.
“What is the point of participating in the exhibition since possible new applications would line up behind the 1,300 and 199 and may be approved after seven or ten years,” Georgiou told a news conference.
In 2010, only 50 of the pending applications for photovoltaic systems were approved, CAREE said
According to a document obtained by the Cyprus Mail from a CAREE member, the government’s budget for new photovoltaic applications in 2011 is zero.
The same can be said for new wind farm applications whose state-subsidised operating costs however will reach €10,015,000 in 2011 – paid from a budget of €25,677,500.
The fund is financed from a 0.44€ct per KW surcharge on electricity bills.
CAREE also censured the government’s complex bureaucratic and lengthy procedures, which discourage people from installing the systems.
“It is not permissible for an application concerning a small (photovoltaic) system, of one KW, to be eight pages – in Germany it is one page. Nor an application should take eight months to approve,” Georgiou said.
And the incentive schemes constantly change and only run for a few months a year with the excuse of lack of funds or delays in approval of the budget, CAREE said.
