Green energy could save the economy By Constantinos Christofides Published on April 14, 2013 + - Text sizeBookmark and Share Follow the mail on Twitter. TOPIC TAGS crisis, economy, green energy, Opinions RELATED CONTENT We live in very difficult times. It is a world marked by cut-throat competition, the pursuit of narrow, national interests, greater geopolitical rivalries and non-transparent financial dealings. This is the world we live in. To survive in such a world we need education, knowledge and sound judgement. We live in very challenging times. We, therefore, must plan for tomorrow. Development will not come from selling homes to Russians and Chinese; that was the old economic model that has just collapsed. The green economy and creativity of young people, who have remained unutilised resources, must feature and society itself should be the heart of the new economic model. At this time, apart from being intelligent, rational and prudent, we must be brave. We must not to be afraid of drastic change and confrontation, we must not shy away from exploring new alternatives for ourselves and our country. What we need today, as a state, is a clear vision which we will be fully committed to. The finance minister of Sweden made a sarcastic remark recently. He said: What is Cyprus? Just a few beaches and some financial institutions. But Cyprus is not only that. It is also its people who have proved to have many strengths, as well as the creativity and the talent of its youth. The people are in fact the most important wealth of Cyprus. The quality, thought, creativity, ingenuity and entrepreneurship are all that constitute the wealth of Cyprus of today and tomorrow. In these difficult times, where the problems are huge, we need bold, unconventional solutions. I am of the view that Cyprus can quickly compensate for its losses, if it invests in three key areas: a green economy; a knowledge society focusing on research, innovation and development, and the development of medical education and medical services. I will focus however on the first sector, which I consider to be the most significant one. Looking at and analysing scientifically the energy map of Cyprus through time, one can conclude that our energy planning today is simply a result of mainly political compromises made because of the unions. The existing energy map clearly reflects outdated objectives and past eras. So, we need a new energy map that meets current needs, but also the present economic circumstances which are pressing and urgent. The new project will lead to the following seven developments: attraction of new energy investments; a drastic reduction in the price of electricity; a drastic reduction in fuel import for the electricity authority (EAC); an increased competitiveness of the economy;alignment with the priorities of Europe as far as the green economy is concerned; the creation of a substantial number of green jobs, andmaximisation of windfall profits in transportation, tourism and agriculture.The government should proceed immediately to a new policy, aiming to transform Cyprus into a Green State, while gaining political advantages and the support of Northern Europe. Simultaneously, this new policy will enhance the new branding of the island, as the Green State rather than as a financial centre. The shift to green development is the key priority for Europe too. Thus, we will be able to take advantage of significant funding opportunities, which will help small and medium-size enterprises, agriculture, farming, rural communities, research centres and hospitals. The field of the Renewable Energy Resources is the easiest and most transparent sector, to which foreign investors could be attracted without difficulty. We should, therefore, conduct and implement a five-year plan that will make Cyprus a “Green State”. The government and the church, the main core of large land owners, should within this five-year programme grant or rent land on favourable terms to energy investors, who can install 20 solar parks, of 100MW power each. The total capacity of those parks could reach a 400MW. However, those parks should be built immediately in order to be integrated directly with the existing electrical network and strengthen it. The benefit of inter-connecting 400MW to the grid for the EAC will be direct and active, since the EAC will save 150 million euros per year from importing fuel and the price per kilowatt hour (kWh) will be automatically reduced by 10 per cent. The parks of 400MW power, like all solar power plants will be awarded through transparent international competitions. In parallel with the first parks we should begin to design their extensions with the prospect of reaching a 2000MW power, so we cover 80 per cent of the countrys energy needs by 2017. In order to be able, however, to expand to such large sizes of photovoltaic power, we should also proceed with creating hydroelectric pumped storage dams, which will give us full coverage during the 12 night-hours. With an infrastructure of 200 million euros, we will be able to produce 70 million cubic metres (m³) of desalinated water per year. We will, therefore, secure the water needs of Cyprus forever, as well as the smooth operation of hydraulic power storage. The total cost for the photovoltaic parks, the pumped storage and the desalination system is estimated to reach the amount of 2.6 billion euros, without having the government to invest one euro! The money can come from private and foreign investment. Let me analyse in more depth the seven key points of the “green state” project of Cyprus.International funds, related to the renewable energy resources and the green economy, are by far the fastest growing ones. Investments in these areas have amounted to tens of billions per year with an impressive growth rate. Attracting 2.6 billion euros in these areas to Cyprus would not be difficult because such investments have quick recovery of initial capital and high profits. The purchase cost per kilowatt hour of a 10MW solar farm is 7.4 cents, according to the latest quotes submitted to the government, while the cost of kWh production by EAC is double, almost 15 cents. So, the cost per kilowatt hour of solar panels for large parks will not exceed 6.8 cents. For every 400 MW PV that will go into the network, the cost to the consumer will be reduced by 10 per cent and at the end, with the completion of the Green State plan, we would end up paying 14 cents per kilowatt hour, instead of the 27 cents we do today. The savings in fuel by the EAC at the end of the five year period, when we will have achieved savings of 80 per cent, will be close to 600 to 700 million euros per year at current oil prices. Simultaneously, there will be large savings in operating costs. The drastic reduction in the price of electricity will have an impressive impact on the economy΄s competitiveness The reduction in the price of electricity will positively affect tourism, production, agriculture and households. All major European Union actions for the next seven years deal directly or indirectly with alternative green economy initiatives. Presently, these funds are mainly attracted by northern European countries. If our country decides to get in line with these European priorities, the necessary infrastructure can be created in order to successfully attract these huge European funds. The investment of 2.6 billion euros in green economy companies, will create around 3,000 new jobs -for engineers, technicians, and other workers - in a five-year period. Our country has the major advantage of long lasting sunshine. We have been committed by the European Union to increase the percentage of solar power usage in our energy mix before 2020. If my proposals were implemented, we can meet this target by the end of the year. It will make our economy more competitive in all fields. Namely, it will affect positively our tourist product. Cheap energy will also drop substantially the price of water and increase its quantity. The cost of electricity will drop to the minimum. The price of water per cubic metre, which now is over 70 cents with the kWh at 25 cents, will drop to half with a cheaper photovoltaic kWh. Additionally, we will have abundant quantities of water, which will enable the agriculture sector to become independent from the weather conditions. Please note that Germany exports bio products that amount to over 15 billion Euros per year! The livestock farming sector will modernise and people will move to the countryside in big numbers. The development of alternative agriculture will also give us new possibilities of biomass energy production. This is how a green circle is created. Cheap electricity will set the foundations for the design of a new modern urban transport system, with an emphasis on electric transport. External funding for this field will become finally viable and worthwhile. Under these conditions, our tourist product will change dramatically. Our tourists will not choose Cyprus just for its wonderful beaches, its antiquities and its weather and natural beauty, but also for the quality of services, its green energy and its bio and organic products. The creation of the Green State must become the national objective, as it will give direction to our struggling economy, open new windows of opportunity for the young generation, create jobs, drastically improve our competitiveness and allow us to live in a cleaner, safer environment. Constantinos Christofides is the rector of the University of Cyprus
Posted on: Wed, 23 Oct 2013 15:34:34 +0000
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