The Renewable Energy Sources and Energy Conservation Fund (the Fund) is the main financial tool of the Republic of Cyprus to promote Renewable Energy Sources (RES) and Energy Conservation (EC), with a view to achieving the binding national targets, as defined by the legislation and the relevant European Directives.
The purpose of the establishment of the Fund is to provide financial incentives in the form of state grants or subsidy for various investments or activities which promote renewable energy sources and energy saving. In accordance with the legislation and in compliance with the provisions of the Support Schemes in force, the Fund may provide financial incentives for:
(a) renewable energy sources installations and equipment;
(b) the production or, where relevant, the purchase of electricity from renewable energy sources;
(c) installations, equipment and other energy-saving activities;
(d) various programmes to promote renewable energy sources and energy saving, including cogeneration of electricity and heat, as well as programmes for public awareness;
(e) any other relevant expenditure deemed necessary by the Committee for the promotion of renewable energy sources and energy saving.
The Fund was initially established on the basis of the Promotion and Encouragement of the Use of the Renewable Energy Sources and Energy Saving Law of 2003, as a “Special Fund”. With the adoption of the Promotion and Encouragement of the Use of the Renewable Energy Sources Law of 2013 (Law 112(I)/2013), the Special Fund was renamed to “The Renewable Energy Sources and Energy Conservation Fund”.