The European Bank for Reconstruction and Development (EBRD) has provided €10 million (US$11 million) in debt financing for the construction, development and operation of five solar photovoltaic parks with total capacity of 11.9 MW in Cyprus.
The parks are located in the areas of Frenaros, Nisou, Dhali, Paliometocho and Malounta and are among the first solar photovoltaic projects of this scale to be implemented in Cyprus. The projects are being run by a consortia of local and international investors and will benefit from the EBRD’s debt financing.
The EBRD started investing in Cyprus during the fourth quarter of 2014 for a temporary period envisaged to last until 2020. The Bank is focusing on investments in the financial sector, supporting privatizations and private concessions and providing finance to projects of individual private companies. The EBRD’s goal is to support the recovery of the country’s economy following a deep financial crisis.
The EBRD’s strategic plan for the period 2016-18 has three priorities: strengthening economic resilience, addressing global challenges and supporting regional integration, and with this investment, great efforts are being made to reduce climate change emissions and dependency on important fuels.
Photios Savvides, Director of CYPV Energy Ltd, one of the companies developing the plants, said:
“We are proud to be part of the new era of sustainable power generation in Cyprus. It took a considerable effort on our part to reach this point, but we are just at the beginning. I would like to thank the EBRD for the commitment and cooperation they demonstrated in this project.”
Libor Krkoška, Head of the Cyprus EBRD Resident Office, stated:
“In line with our strategy for Cyprus, it is with great satisfaction that we have been able to support investments in the renewable energy sector in the country. We are pleased to see renewable energy projects contributing towards Cyprus’s 2020 target for power generation from sustainable sources.”
Nandita Parshad, EBRD Director, Head of Power and Energy Utilities, added:
“We are pleased to sign these agreements today as they will allow Cyprus to make progress with tapping the huge potential it has in renewable energy. Over the years supporting sustainable energy with finance and advice has become a core activity for the EBRD and we are proud to apply our expertise and experience now also on this sun-kissed island.”