Cyprus and Estonia’s modernisation plans okayed
Thursday 28 June 2012
The European Commission gave the green light for the allocation of carbon emission trading allowances free of charge in Cyprus and Estonia’s development plans for the electricity sector. The total market value of the allowance for Estonia amounts to €371 million and will be used to replace oil shale generators, produce more energy from renewable sources and diversify the national energy mix. In addition, the market share of any national operator will be limited to 40% until 2018, as compared to 95% in 2007. The €194 million worth of free emissions allowances under the Cypriot national plan will go to the modernisation of installations for the future use of natural gas and to the restoration of the production capacity of the main generation plant, destroyed in June 2011. The energy sector infusions in both countries are in compliance with EU aims of liberalising energy markets, reducing greenhouse gas emissions and increasing security of supply.