Every year in the world, the concept of renewable energy becomes more and more relevant. Factors such as the fast growing population of the planet, the uneven distribution of natural reserves, political conflicts based on energy resources and the problem of reducing environmental pollution are pushing humanity to search for alternative energy sources and the everincreasing use of socalled ‘green energy’. Only in the last year, the consumption of renewable energy sources (excluding hydropower) has increased by 14 percent. In Cyprus, with its almost 300 sunny days per year and high electricity prices, the issue of alternative energy is acute.

Renewable or alternative energy (‘‘Green energy’’) — energy from sources that are considered inexhaustible. Renewable energy is obtained from such natural resources as: Sunlight, water, wind, tides and geothermal heat.

A few years ago, GDL Green Energy Group started its operations in Cyprus, the result of a strategic alliance of energy sector specialists and investors investing in the renewable energy sector. Dmitry Morozov, Chairman of the Board of Directors of the company, shared with us his views on the prospects for development of the alternative energy market in Cyprus and told us about the company’s main projects and strategies for their development, as well as the investment attractiveness of this direction.

Strictly speaking, the first idea of engaging in the energy business arose in 2013. Living on an island where almost 300 days a year are sunny and not using it for good is just silly. In addition, the island needs to comply with EU requirements on the percentage of renewable energy in the balance of the country. Also, we basically believe that burning fuel as it is now in Cyprus, to get electricity, is economically impractical, especially with the high price of electricity, which directly depends on oil prices. This new alternative is very attractive for investors, since the energy facility’s service life is 20-25 years. Electricity is necessary for everyone and will always be. The island’s main feature is that we really have a very high daily consumption of electricity due to the common usage of air conditioners.

Further, we have come a long way to go in obtaining various permits, licenses and contracts with the electricity company to buy electricity from us. The first park we launched was in 2014. Since then, we have built 12 MW of capacity on the island. These are five large objects from 1.5 to 4.5 MW each. For comparison, the park built by the electric company of Cyprus is designed for only 3 megawatts. Next, according to the plan, we have a 10 megawatt project that will be located next to Nicosia, with investments of about 10 million Euros, and another 15 megawatt broken down into 5 smaller parks.

In general, our company, as well as regulators of Cyprus, estimate the potential of the market for the next years at 120 megawatts. That is, we can build 10 times more than we have today, while, for the investors, guaranteeing a minimum income of 7 % per annum. Everything that we produce is fed into a common network, while the cost of producing solar energy today is much lower than it was before, when this type of business required state subsidies. For comparison, the construction of a station for 1 megawatt five years ago cost 2 million. Now, it is under a million. Since projects of this kind are related to infrastructure projects, investments in this business go to offset the passport investment program of Cyprus.

What other promising areas do you see in this sector?

We have many ideas; for example, to transfer public transport to hydrogen. We even signed a ‘‘contract of intent’’ with the Limassol city council to build a pilot station that will produce hydrogen from sea water. It will just have to be desalinated and then we can get hydrogen. The future is here and if you look where even large oil companies invest, they invest in solar energy and not only in solar, but, in general, in alternative energy and hydrogen. On this planet, there is a lot of water and, after the burning off of hydrogen, it again can turn back into water vapour. So, it is much more promising to build hydrogen stations than refineries.

Now, we are working on a very interesting pilot project, which is the production of methane from the processing of garbage, which is very much on this island. Again, we solve two problems, making the island clean and energy efficient.

For example, in Germany and many other countries, there are socalled hydrostorages, where the same water works several times. When there is a surplus of energy, water is pumped upwards by 100 metres and when the peak of electricity consumption occurs within half an hour, it works like an ordinary hydroelectric power station. We have already developed a pilot project for 40 megawatts. The storage facility is designed for 700,000 tons of water, which can be used for its intended purpose in case of drought or interruptions. We live on the sea and if there is cheap electricity, then the water can simply be desalinated and stored.

Another promising area that we are currently engaged in is ‘‘energy efficiency of buildings’’. Already, energysaving equipment is being laid at the design stage. For example, a special tile, which (in itself) is already a solar battery or facade glass, has solar cells that are built in. All this is advisable to install at the construction stage, so we are actively working with architects and arranging semiannual special seminars on this topic.

If, during the construction phase, the house is properly arranged and, for example, the entire southern part of the roof is rolled up with a similar tile or used with solar cells, batteries and energysaving technologies, we will get a house with the now fashionable name ZeroEnergy House, which will fully provide itself with electricity.

Another remarkable direction in our company is called ESCo — Energy Service Company. The idea is that we propose to reduce the consumption of electricity and fuel to such facilities as hotels, clinics, plants, etc. due to the modernisation of their equipment. We come to the hotel and we bring with us special sensors and install them for 4-6 months. They constantly accumulate and record information about the costs of water, electricity and gas. Then, we offer the client ways to reduce energy consumption by using our equipment. So, a large hotel can cut expenses for electricity and fuel by half, which, in price terms, is very serious, since the bills can reach a million Euros a year.

There is a very advanced technology of Solar cooling, when the effectiveness of air conditioning systems is increased by inserting, into the system, an additional solar cell that increases the temperature of the working fluid and, correspondingly, the efficiency of the air conditioning systems by 20-25%.

Usually, air conditioning systems throw all the heat out into the street, but if this unit is combined with a water heating unit and a solar cooling system, we will get a circuit that will significantly reduce power consumption.

We also have huge plans related to the construction of a Cyprus submarine cable, which will connect the island with Greece and Israel. This is also a very big direction that opens many prospects for the development of solar energy because, then, this electricity will be sold to other European countries.

How will your strategy change if there are natural gas fields in Cyprus?

Even if there is gas in Cyprus, electricity will not be an easy task, as all power stations will be insanely costly to convert to gas turbines and Cyprus is unlikely to be able to afford it. Even if investors are involved, investors are unlikely to find a sensible businessman who actually wants to invest in the burning of money.

Does the government somehow shows its interest in these projects?

I will try to answer correctly. We do not need help! The main thing is not to interfere with us.

GDL Group, Nicou Pattichi 107B, 3070 Limassol, Cyprus,

Tel: +357 25734800, Fax: +357 25734810,

email: [email protected], www.geg.com.cy

“Three sketches of Lucian Freud” by Francis Bacon
Francis Bacon was an English expressionist painter and a master of figurative painting. His triptych, in 2013, became the most expensive work of art in the world. “Three sketches of Lucian Freud” was sold at Christie’s auction for a record sum of 142 million dollars.

The triptych, created by the artist in 1969, was auctioned for the first time at a pre-sale estimate of 85 million dollars. Bidding lasted only six minutes and the auction house did not disclose the identity of the buyer. Each part of the triptych has the same size of 198×147.5 cm. Each canvas depicts Lucien Freud in different poses, while seated on a chair is the artist Lucien Freud. The background is orange-brown, which is brighter than normal for the works of Bacon.

“Number 5” by Jackson Pollock
“Number 5” was completed in 1948 and utilised the technique of spraying, which is the corporate style of the artist. The picture size is 243.8×121.9 cm and is mounted on fibreboard (hardboard).

In 2006, at an auction organised by the auction house Sotheby’s, it was sold for 140 million dollars. It is believed that the hype surrounding this painting was created artificially. All of the paintings of Jackson Pollock were presented in museums and sold freely. Yet, “Number 5” was hidden and shown only when all of the other artworks were sold.

Consequently, the price of the painting went up to the heavens and broke many records. The original painting was in a private collection and was then exhibited in the Museum of Modern Art in New York. It then became the property of producer David Geffen. Who sold it for $ 140 million? According to unconfirmed reports, it was a famous Mexican billionaire.