http://cleantech.com/news/4940/smartcool-lumina-solar-target-energ

Mediterranean island has some of the highest electricity rates in Europe thanks to its lack of energy resources.

Vancouver, Canada-based Smartcool Systems (TSXV:SSC) said today it inked a deal for Nicosia, Cyprus-based Lumina Solar to distribute its technologies that make refrigeration and air conditioning more energy efficient.

The supply deal gives Smartcool its first foothold into the Cyprus market. According to the U.S. Department of Energy's Energy Information Administration, Cyprus has no energy resources such as coal, natural gas, or oil, leaving the island to import all its energy resources.

That has led to some of the highest electricity rates in the European Union. Residential rates are approximately US$0.20 per kilowatt-hour, with industrial rates at $0.18 per kWh. The rate increased between 30 and 40 percent from 2005 to 2006.

"The island of Cyprus is reliant on electricity and with rapid rate increases there is growing pressure to implement energy efficiency initiatives to reduce costs and maintain control of energy demand," stated Steven Martin, director of sales for Smartcool Systems, in a news release.

Shares of Smartcool were up more than 14 percent today.

Financial terms of the exclusive supply deal were not disclosed. Lumina has promised minimum sales in order to retain the exclusive rights to sell the technology on the island. Lumina Solar, a subsidiary of Cyprus-based Lordos Group, was founded in 2007 to finance and commission energy efficiency systems in Southeastern Europe and North Africa.

Cyprus must meet 13 percent renewable energy by 2020; however, renewable energy sources decreased from 4.5 percent of consumption in 1995 to 4 percent in 2002.