EAC PLANNING FOR RENEWABLE ENERGY SOURCES GENERATION DR. STELIOS STYLIANOU, EAC GENERAL MANAGER

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1 EAC PLANNING FOR RENEWABLE ENERGY SOURCES GENERATION DR. STELIOS STYLIANOU, EAC GENERAL MANAGER POEM, 07 October

2 CONTENTS INTRODUCTION EAC CURRENT RES PLANS AND PROJECTS CONSTRUCTION OF LARGE PV PARKS COLLABORATION WITH PRIVATE FIRMS FOR LARGE PV PARKS COLLABORATION WITH PRIVATE FIRM FOR LARGE WIND PARK PROMOTION OF NET-METERING FOR SMALL PV SYSTEMS PARTICIPATION OF EAC IN EU FUNDED RES PROJECTS CONCLUSIONS 2

3 INTRODUCTION Role of Electricity for the Economy of Cyprus Competitiveness of Cyprus Economy Welfare of people High Prices of Electricity in recent years Increase in international fuel prices Dependence of Cyprus to Liquid Fuel Imports Challenges of Climate Change Need to carefully design the Electricity System along the guidelines of sustainability as defined by the European Directives Competitiveness Environment Security of Supply Consideration of Characteristics of Small and Isolated Cyprus Electricity System 3

4 INTRODUCTION Conventional Electricity Generation System Steam Turbines: HFO Gas Turbines: Gasoil CCGTs: Gasoil ICE: HFO 2012 Statistics Generation (GWh) Generation (%) Vasilikos Power Station Dhekelia Power Station Moni Power Station DHEKELIA POWER STATION 6x60MWe Steam Turbines 50MWe Int. Comb Engines 1 50MWe Int. Comb Engines 2 MONI POWER STATION 4x37,5MWe Gas Turbines VASILIKOS POWER STATION 3x130MWe Steam Turbines 2x220MW CCGTs 1x38MWe Gas Turbine

5 INTRODUCTION Peak load demand projections for

6 INTRODUCTION Integration of Renewable Energy Sources According to RES National Action Plan the minimum target for RES-E Energy in 2020 is set at 16% of the total electricity energy. Individual targets for the capacity from each RES technology for 2020 are: Wind Parks -300MW Photovoltaics -192MW Biomass -17MW Concentrated Solar Power -75MW Main challenge is to overcome the technical and operational problems of the electrical system brought with the installation and operation of Renewable plants These problems are expected to increase as the installation of more RES continues. Limited system ability to cope with RES Generation during minimum daily load Ramping up and down of RES 6

7 INTRODUCTION Renewable Energy Sources Generation from Renewable Energy Sources Exceeds 5% of total electricity generation Wind Generation Five wind parks are already in commercial operation Orites Wind Park with 82MWe Capacity in operation since February 2011 Psevdas Wind Park with 20MW Capacity in operation since January 2012, Alexigros Wind Park with 31,5 MW Capacity in operation since May 2012 Koshi Wind Park with 10,8MW Capacity in operation since May 2012 Kambi Wind Park with 2,4MW Capacity in operation since 2012 Photovoltaics Biomass Small-rooftop PV systems and large PV parks up to 150kW - Total combined grid connected capacity of approximately 27,9MWe Biomass gasification units (the majority of which use animal or domestic waste) - Total grid connected capacity of 9,7MWe. 7

8 EAC CURRENT RES PLANS AND PROJECTS Benefits from the large integration of RES plants Integration of large RES plants will reduce the cost of electricity Large PV parks have positive contribution in the cost of electricity and reduce dependence of Cyprus on imported fuels Important benefits of large integration of RES: - Distinct reduction of the cost of electricity - Increased economic activity - Significant technical experience in large integration of RES - Possibility of exceeding national RES targets - Reducing dependence of Cyprus on imported fuels

9 EAC CURRENT RES PLANS AND PROJECTS EAC RES-E Strategic Plan for Construction of own RES plants or by collaboration via Joint Ventures with private firms RES-E Action Plan targets: - PV parks up to 130MW - CSP plants up to 50MW The plan was devised in 2010 and is currently under review and updating.

10 EAC CURRENT RES PLANS AND PROJECTS Construction of large PV Parks EAC was awarded a 3MW PV Park at Tseri Substation Under licensing procedure expected to be completed in October Operational in March 2014

11 EAC CURRENT RES PLANS AND PROJECTS Construction of large PV Parks Large PV Park up to 20MW at Akrotiri in collaboration with Holy Bishopric of Limassol

12 EAC CURRENT RES PLANS AND PROJECTS Collaboration with private firms for large PV Parks Express of Interest (EoI) International tender in 2012 for Joint Venture for large PV Parks Signing of Memorandum of Agreement with two private firms: - Company A for 2 parks, at Politikos 4,85MW and at Lythrodontas 6,66MW - Company B, for 1 park, at Mitsero 10MW

13 EAC CURRENT RES PLANS AND PROJECTS Collaboration with private firm for Wind Park Memorandum of Agreement with private firm for a Wind Park of 10,8MW in Ayia Anna Six Vestas V-100 with 1,8MW nominal power and total annual generation of 17GWh

14 EAC CURRENT RES PLANS AND PROJECTS Promotion of net-metering for small PV systems 200 PV systems of 3kW under the net-metering scheme Small number of applications under the CERA plan for netmetering people cannot afford the cost of installation even if they receive the funding EAC to finance the installation of the PV system and the system to be paid off via fixed bimonthly payments.

15 EAC CURRENT RES PLANS AND PROJECTS Smart Meters and Smart Grids Significant developments in power electronics, electronic metering systems and telecommunications systems - Interactive movement of electricity and data as well as smart metering systems - Enabled electricity companies to offer their customers a broader and higher-quality range of services. According to EU Directive 2009/72/ΕC, member states are obliged to install smart meters on 80% of customer premises by The EAC has taken the strategic decision to implement, as a first stage, an Automatic Meter Infrastructure (AMI) system aiming to increase productivity and reduce operating costs

16 PARTICIPATION OF EAC IN EU FUNDED RES PROJECTS MACCSol Seventh Framework Program for Research and Development of the European Commission, The development and verification of a novel modular air cooled condenser for enhanced concentrated solar power generation (MACCSol) Development of a technology for making air-cooled condensers of CSP plants located in drought areas, more efficient than water-cooled condensers Identification of optimum modular air-cooled condenser in terms of size and cost

17 PARTICIPATION OF EAC IN EU FUNDED RES PROJECTS STEP-EW Cross-Border Cooperation Programme Greece-Cyprus , Solar thermal Power Generation and Water (STEP-EW) Technical confirmation of the cogeneration of electricity and desalinated water by using small scale solar thermal plants Participation in the design and the development of the system by providing expertise and technical assistance in the integration of each system and in the technical specifications of the unit

18 PARTICIPATION OF EAC IN EU FUNDED RES PROJECTS LIFE+ SmartPV LIFE+ Environment Policy and Governance, Smart net metering for promotion and cost-efficient grid-integration of PV technology in Cyprus (LIFE+ SmartPV) Investigate and optimize net-metering schemes for replacing costly RES subsidies Implementation of the scheme in 300 pilot homes and the EAC AMI system at 3000 consumers EAC will provide and manage the integrated measurement and communication infrastructure for the monitoring of consumption, management and dissemination of the data Collaborate with CERA for setting dynamic net-metering tariffs

19 CONCLUSIONS EAC is committed in promoting the integration of Renewable Energy Sources in the power generation system Giving priority in the introduction of RES systems Big number of EAC RES projects in progress Taking part in RES research projects Careful steps required

20 CONCLUSIONS Security of Supply - Small and isolated system - Economic crisis more vulnerable electrical system - Need careful planning for the RES integration - EU requirement - Need healthy conventional power system

21 Thank you for your attention!