The European Commission announced the disbursement of pre-financing amounting to €20.9 million to Cyprus as part of the REPowerEU program. This funding is aimed at energy-saving measures and the promotion of clean energy, under the Recovery and Resilience Facility.

The objective of this pre-financing from the total funds allocated under the REPowerEU chapter of the National Recovery and Resilience Plan is to accelerate the implementation of key investments and reforms recorded in the plan.

REPowerEU focuses on measures for energy saving, strengthening renewable energy production, and diversifying energy supply to reduce the EU's dependence on Russian fossil fuels following the invasion of Ukraine, as well as supporting the green transition.

The pre-financing is paid in one or two installments and can cover up to 20% of the additional funds for each country's REPowerEU capital. If paid in two installments, the second must be disbursed within 12 months of the first.

Simultaneously with Cyprus, the Commission announced pre-financing disbursements of €145.1 million to Belgium and €585.1 million to Croatia in grants and loans. Additionally, pre-financing of €25.4 million to Finland, €158.7 million to Greece, €551.2 million to Italy, €26.9 million to Latvia, and €288 million to Romania in grants, as well as €340 million in loans for Spain, were approved.

These disbursements follow the EU Council's approval of the revised plans of these countries, which now include REPowerEU capital, and the signing of financing agreements. To date, the Council has approved REPowerEU funds for 23 member states that have submitted revised national plans.

The European Commission's announcement was welcomed by Finance Minister Makis Keravnos.

According to the Ministry of Finance, Cyprus has secured €104 million for financing the new REPowerEU Capital under the national "Cyprus - Tomorrow" Recovery and Resilience Plan. This funding will support additional reforms and new or upgraded incentive schemes for energy upgrades and further promotion of electromobility, to be implemented by 2026.

The Minister expressed gratitude to the European Commission for its close cooperation, all partners, and the National Plan's implementing agencies, assuring continued efforts to achieve all goals and milestones timely and within agreed schedules.

As reported by the Ministry, Cyprus has received €263 million from the Recovery and Resilience Facility to date. Following the required EU checks on the payment request for the 2nd and 3rd installments submitted by Cyprus on December 15, 2023, another €152.2 million is expected to be collected.

It is also reported that in 2024, two payment applications for the 4th and 5th installments are expected, totaling €197 million.