Open a Company in the Energy Sector in Cyprus
Open a Company in the Energy Sector in CyprusUpdated on Wednesday 24th January 2018
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The energy sector in Cyprus is the new boom sector which attracts the attention of international entrepreneurs and solid global investments in hydrocarbons, as well as renewables, making the island an important player in the Eastern Mediterranean area. In this article, our lawyers in Cyprus explain different aspects related to opening a company in the Cypriot energy industry.
The energy market liberalization in Cyprus
The Cypriot Energy Regulatory Authority (CERA) has advanced toward the entire opening up of the energy market and guaranteeing consumers the right of choosing their preferred supplier, with a full market liberalization in this country being expected to take place by May 2019.
The CERA has proposed a “net pool” model, in which the activities of the power company owned by the local government, EAC, are unbundled and the production and supply activities are separated.
The production of EAC is expected to enter into bilateral contracts with different suppliers for the energy sale at regulated costs.
Our Cypriot lawyers can assist investors who are interested in setting up a Cypriot energy business.
Licensing for offshore exploration in Cyprus
In 2016, the local government announced they started the third round of licensing for the offshore exploration in the Exclusive Economic Zone of Cyprus.
The Minister of Energy declared that the criteria for the selection of these specific blocks were based on several aspects, with geology being the most significant one.
According to the notice of the local authorities, the criteria which were used in evaluating the applications for these hydrocarbon explorations licenses in Cyprus were the technical and financial capabilities of the applicants, the financial proposal of the applicants to obtain the license and any lack of efficiency and responsibility of the applicant which had been proven in any previous license or authorization of any kind in any country.
Our attorneys in Cyprus can provide more details related to this type of license.
The Exclusive Economic Zone in Cyprus
As it is already known, the gas reserves in the Exclusive Economic Zone of Cyprus should be important. As declared by the Noble Energy (the company which is responsible for the first exploration and drilling in the Leviathan zone), the discoveries account for the largest exploration success in the history of this company.
The company is currently analyzing several export options for the natural gas, such as both LNG and pipeline systems towards Europe.
Our Cypriot law firm specializes in all forms of energy sector law, so that we can appropriately assist all entrepreneurs interested in the gas and petroleum projects in the island, as well as in renewable energy or other connected industry projects.
If you have further questions about the energy sector in Cyprus, or for assistance in setting up a business in this country, please get in touch with our law firm in Cyprus.